NRG ENERGY INC (NRG) Stock Fundamental Analysis
NYSE:NRG - New York Stock Exchange, Inc. - US6293775085 - Common Stock - Currency: USD
Overall NRG gets a fundamental rating of 5 out of 10. We evaluated NRG against 47 industry peers in the Electric Utilities industry. NRG has only an average score on both its financial health and profitability. NRG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NRG was profitable.
In the past year NRG had a positive cash flow from operations.
Of the past 5 years NRG 4 years were profitable.
NRG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NRG has a Return On Assets of 5.19%. This is amongst the best in the industry. NRG outperforms 85.11% of its industry peers.
Looking at the Return On Equity, with a value of 46.71%, NRG belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.61%, NRG belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 46.71% | ||
| ROIC | 12.61% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.43%, NRG is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of NRG has declined.
Looking at the Operating Margin, with a value of 8.69%, NRG is doing worse than 89.36% of the companies in the same industry.
In the last couple of years the Operating Margin of NRG has declined.
The Gross Margin of NRG (21.37%) is worse than 72.34% of its industry peers.
In the last couple of years the Gross Margin of NRG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 4.43% | ||
| GM | 21.37% |
OM growth 3Y-16.28%
OM growth 5Y-9.48%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-3.84%
GM growth 5Y-3.52%
2. Health
2.1 Basic Checks
NRG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NRG has less shares outstanding
The number of shares outstanding for NRG has been reduced compared to 5 years ago.
NRG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.46, NRG belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
NRG has a debt to FCF ratio of 4.75. This is a neutral value as NRG would need 4.75 years to pay back of all of its debts.
NRG has a better Debt to FCF ratio (4.75) than 89.36% of its industry peers.
A Debt/Equity ratio of 3.53 is on the high side and indicates that NRG has dependencies on debt financing.
NRG has a Debt to Equity ratio of 3.53. This is amonst the worse of the industry: NRG underperforms 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.62
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.06 indicates that NRG should not have too much problems paying its short term obligations.
NRG has a Current ratio of 1.06. This is in the better half of the industry: NRG outperforms 65.96% of its industry peers.
NRG has a Quick Ratio of 1.02. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.02, NRG is doing good in the industry, outperforming 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
NRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
The Earnings Per Share has been growing by 22.12% on average over the past years. This is a very strong growth
Looking at the last year, NRG shows a small growth in Revenue. The Revenue has grown by 2.65% in the last year.
Measured over the past years, NRG shows a very strong growth in Revenue. The Revenue has been growing by 23.42% on average per year.
EPS 1Y (TTM)35.48%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%16.02%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%15.56%
3.2 Future
NRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.49% yearly.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y-15.05%
EPS Next 2Y-3.22%
EPS Next 3Y1.65%
EPS Next 5Y1.49%
Revenue Next Year2.54%
Revenue Next 2Y2.71%
Revenue Next 3Y2.75%
Revenue Next 5Y2.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.91, NRG is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as NRG.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NRG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.68, the valuation of NRG can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
NRG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NRG.
NRG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NRG is cheaper than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y-3.22%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, NRG has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.11, NRG pays less dividend than the industry average, which is at 3.63. 80.85% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.11, NRG pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
On average, the dividend of NRG grows each year by 75.36%, which is quite nice.
NRG has been paying a dividend for at least 10 years, so it has a reliable track record.
NRG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)75.36%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
31.46% of the earnings are spent on dividend by NRG. This is a low number and sustainable payout ratio.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.46%
EPS Next 2Y-3.22%
EPS Next 3Y1.65%
150.68
-0.68 (-0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.69%
Inst Owner Change-0.01%
Ins Owners0.59%
Ins Owner Change-1.42%
Market Cap29.46B
Analysts75.71
Price Target163.23 (8.33%)
Short Float %3.25%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP31.46%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.09%
Min EPS beat(2)16.39%
Max EPS beat(2)77.8%
EPS beat(4)3
Avg EPS beat(4)51.01%
Min EPS beat(4)-5.85%
Max EPS beat(4)115.68%
EPS beat(8)4
Avg EPS beat(8)37.49%
EPS beat(12)5
Avg EPS beat(12)-35.85%
EPS beat(16)8
Avg EPS beat(16)-26.28%
Revenue beat(2)1
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-11%
Max Revenue beat(2)8.6%
Revenue beat(4)1
Avg Revenue beat(4)-11.73%
Min Revenue beat(4)-23.77%
Max Revenue beat(4)8.6%
Revenue beat(8)2
Avg Revenue beat(8)-11.52%
Revenue beat(12)6
Avg Revenue beat(12)16.62%
Revenue beat(16)10
Avg Revenue beat(16)30.25%
PT rev (1m)30.97%
PT rev (3m)33.87%
EPS NQ rev (1m)-11.51%
EPS NQ rev (3m)-37.03%
EPS NY rev (1m)2.08%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)-16.08%
Revenue NQ rev (3m)-13.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 17.68 | ||
| P/S | 1.01 | ||
| P/FCF | 12.95 | ||
| P/OCF | 10.18 | ||
| P/B | 10.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.91 |
EPS(TTM)9.47
EY6.28%
EPS(NY)8.52
Fwd EY5.66%
FCF(TTM)11.63
FCFY7.72%
OCF(TTM)14.8
OCFY9.82%
SpS149.79
BVpS14.2
TBVpS-26.01
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 46.71% | ||
| ROCE | 16.23% | ||
| ROIC | 12.61% | ||
| ROICexc | 13.19% | ||
| ROICexgc | 27.72% | ||
| OM | 8.69% | ||
| PM (TTM) | 4.43% | ||
| GM | 21.37% | ||
| FCFM | 7.76% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y1.18%
ROICexcg growth 5Y18.42%
ROICexc growth 3Y-13.6%
ROICexc growth 5Y3.73%
OM growth 3Y-16.28%
OM growth 5Y-9.48%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-3.84%
GM growth 5Y-3.52%
F-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.53 | ||
| Debt/FCF | 4.75 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 56.78% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | 175.33% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.46 |
F-Score7
WACC7.79%
ROIC/WACC1.62
Cap/Depr(3y)43.04%
Cap/Depr(5y)39.77%
Cap/Sales(3y)1.64%
Cap/Sales(5y)1.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.48%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%16.02%
EPS Next Y-15.05%
EPS Next 2Y-3.22%
EPS Next 3Y1.65%
EPS Next 5Y1.49%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%15.56%
Revenue Next Year2.54%
Revenue Next 2Y2.71%
Revenue Next 3Y2.75%
Revenue Next 5Y2.04%
EBIT growth 1Y68.83%
EBIT growth 3Y-15.12%
EBIT growth 5Y11.72%
EBIT Next Year72.34%
EBIT Next 3Y27.71%
EBIT Next 5Y12.65%
FCF growth 1Y167.62%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y199.31%
OCF growth 3Y67.24%
OCF growth 5Y11.07%