NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - NYSE:NRG - US6293775085 - Common Stock
168.74 USD
-1.19 (-0.7%)
168.7 USD
-0.04 (-0.02%)
NRG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. NRG has an average financial health and profitability rating. NRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NRG had positive earnings in the past year.
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
With a Return On Assets value of 1.89%, NRG is not doing good in the industry: 85.11% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 19.89%, NRG belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
NRG has a worse Return On Invested Capital (2.92%) than 82.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NRG is significantly above the industry average of 4.90%.
The 3 year average ROIC (10.16%) for NRG is well above the current ROIC(2.92%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROIC | 2.92% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)10.16%
ROIC(5y)11.32%
1.3 Margins
The Profit Margin of NRG (1.55%) is worse than 91.49% of its industry peers.
In the last couple of years the Profit Margin of NRG has declined.
The Operating Margin of NRG (1.96%) is worse than 91.49% of its industry peers.
NRG's Operating Margin has declined in the last couple of years.
The Gross Margin of NRG (15.25%) is worse than 78.72% of its industry peers.
In the last couple of years the Gross Margin of NRG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 15.25% |
OM growth 3Y-18.92%
OM growth 5Y-11.2%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-4.97%
GM growth 5Y-4.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NRG is still creating some value.
The number of shares outstanding for NRG has been reduced compared to 1 year ago.
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
NRG has an Altman-Z score of 2.28. This is not the best score and indicates that NRG is in the grey zone with still only limited risk for bankruptcy at the moment.
NRG has a better Altman-Z score (2.28) than 91.49% of its industry peers.
The Debt to FCF ratio of NRG is 7.85, which is on the high side as it means it would take NRG, 7.85 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 7.85, NRG belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
A Debt/Equity ratio of 4.29 is on the high side and indicates that NRG has dependencies on debt financing.
The Debt to Equity ratio of NRG (4.29) is worse than 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.38
WACC7.63%
2.3 Liquidity
NRG has a Current Ratio of 0.93. This is a bad value and indicates that NRG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NRG (0.93) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that NRG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, NRG is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for NRG have decreased strongly by -14.60% in the last year.
NRG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.12% yearly.
NRG shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
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)-14.6%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%-50.15%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
3.2 Future
NRG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.32% yearly.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y-13.5%
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
EPS Next 5Y7.32%
Revenue Next Year-2.15%
Revenue Next 2Y3.7%
Revenue Next 3Y3.63%
Revenue Next 5Y3.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NRG is valuated rather expensively with a Price/Earnings ratio of 21.69.
Compared to the rest of the industry, the Price/Earnings ratio of NRG indicates a slightly more expensive valuation: NRG is more expensive than 68.09% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (27.40), we can say NRG is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.94, which indicates a rather expensive current valuation of NRG.
The rest of the industry has a similar Price/Forward Earnings ratio as NRG.
The average S&P500 Price/Forward Earnings ratio is at 22.94. NRG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.94 |
4.2 Price Multiples
NRG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NRG is more expensive than 85.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NRG is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.41 | ||
| EV/EBITDA | 26.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.04, NRG pays less dividend than the industry average, which is at 3.22. 80.85% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.04, NRG pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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.
As NRG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)75.36%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
89.67% of the earnings are spent on dividend by NRG. This is not a sustainable payout ratio.
The dividend of NRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.67%
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
168.74
-1.19 (-0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-0.25%
Ins Owners0.61%
Ins Owner Change-0.7%
Market Cap32.64B
Analysts78.67
Price Target178.03 (5.51%)
Short Float %2.85%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP89.67%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.2%
Min EPS beat(2)6.61%
Max EPS beat(2)77.8%
EPS beat(4)3
Avg EPS beat(4)23.74%
Min EPS beat(4)-5.85%
Max EPS beat(4)77.8%
EPS beat(8)5
Avg EPS beat(8)44.55%
EPS beat(12)5
Avg EPS beat(12)-54.39%
EPS beat(16)8
Avg EPS beat(16)-39.4%
Revenue beat(2)2
Avg Revenue beat(2)4.33%
Min Revenue beat(2)0.06%
Max Revenue beat(2)8.6%
Revenue beat(4)2
Avg Revenue beat(4)-6.53%
Min Revenue beat(4)-23.77%
Max Revenue beat(4)8.6%
Revenue beat(8)3
Avg Revenue beat(8)-9.18%
Revenue beat(12)6
Avg Revenue beat(12)15.11%
Revenue beat(16)10
Avg Revenue beat(16)25.86%
PT rev (1m)0.13%
PT rev (3m)4.77%
EPS NQ rev (1m)2.9%
EPS NQ rev (3m)-14.1%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.25%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.94 | ||
| P/S | 1.11 | ||
| P/FCF | 23.41 | ||
| P/OCF | 14.26 | ||
| P/B | 14.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.79 |
EPS(TTM)7.78
EY4.61%
EPS(NY)8.91
Fwd EY5.28%
FCF(TTM)7.21
FCFY4.27%
OCF(TTM)11.83
OCFY7.01%
SpS151.82
BVpS11.83
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROCE | 3.76% | ||
| ROIC | 2.92% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 5.88% | ||
| OM | 1.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 15.25% | ||
| FCFM | 4.75% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)10.16%
ROIC(5y)11.32%
ROICexc(3y)10.6%
ROICexc(5y)12.26%
ROICexgc(3y)20.56%
ROICexgc(5y)20.12%
ROCE(3y)13.08%
ROCE(5y)14.57%
ROICexcg growth 3Y-2%
ROICexcg growth 5Y16.16%
ROICexc growth 3Y-16.33%
ROICexc growth 5Y1.76%
OM growth 3Y-18.92%
OM growth 5Y-11.2%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-4.97%
GM growth 5Y-4.2%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Debt/EBITDA | 6.06 | ||
| Cap/Depr | 85.65% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.3% | ||
| Profit Quality | 306.37% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.28 |
F-Score5
WACC7.63%
ROIC/WACC0.38
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)-14.6%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%-50.15%
EPS Next Y-13.5%
EPS Next 2Y-1.04%
EPS Next 3Y4.88%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
Revenue Next Year-2.15%
Revenue Next 2Y3.7%
Revenue Next 3Y3.63%
Revenue Next 5Y3.62%
EBIT growth 1Y-75.89%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year77.53%
EBIT Next 3Y32.24%
EBIT Next 5Y18.72%
FCF growth 1Y131.7%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y159.35%
OCF growth 3Y67.24%
OCF growth 5Y11.07%