NRG ENERGY INC (NRG) Fundamental Analysis & Valuation

NYSE:NRG • US6293775085

Current stock price

153.39 USD
+0.52 (+0.34%)
Last:

This NRG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. NRG Profitability Analysis

1.1 Basic Checks

  • NRG had positive earnings in the past year.
  • NRG had a positive operating cash flow in the past year.
  • NRG had positive earnings in 4 of the past 5 years.
  • Of the past 5 years NRG 4 years had a positive operating cash flow.
NRG Yearly Net Income VS EBIT VS OCF VS FCFNRG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B

1.2 Ratios

  • NRG has a Return On Assets of 2.74%. This is comparable to the rest of the industry: NRG outperforms 50.00% of its industry peers.
  • NRG's Return On Equity of 47.41% is amongst the best of the industry. NRG outperforms 100.00% of its industry peers.
  • The Return On Invested Capital of NRG (8.39%) is better than 95.65% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NRG is above the industry average of 4.49%.
Industry RankSector Rank
ROA 2.74%
ROE 47.41%
ROIC 8.39%
ROA(3y)2.05%
ROA(5y)3.96%
ROE(3y)27.1%
ROE(5y)34.79%
ROIC(3y)9.33%
ROIC(5y)11.48%
NRG Yearly ROA, ROE, ROICNRG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 400 600

1.3 Margins

  • NRG has a worse Profit Margin (2.59%) than 86.96% of its industry peers.
  • In the last couple of years the Profit Margin of NRG has declined.
  • The Operating Margin of NRG (7.50%) is worse than 86.96% of its industry peers.
  • NRG's Operating Margin has declined in the last couple of years.
  • NRG's Gross Margin of 20.55% is on the low side compared to the rest of the industry. NRG is outperformed by 69.57% of its industry peers.
  • In the last couple of years the Gross Margin of NRG has declined.
Industry RankSector Rank
OM 7.5%
PM (TTM) 2.59%
GM 20.55%
OM growth 3Y2.06%
OM growth 5Y-10.61%
PM growth 3Y-12.48%
PM growth 5Y-14.29%
GM growth 3Y16.51%
GM growth 5Y-6.06%
NRG Yearly Profit, Operating, Gross MarginsNRG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. NRG Health Analysis

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.
  • Compared to 1 year ago, NRG has less shares outstanding
  • NRG has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for NRG is higher compared to a year ago.
NRG Yearly Shares OutstandingNRG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
NRG Yearly Total Debt VS Total AssetsNRG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • NRG has an Altman-Z score of 2.34. 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.
  • Looking at the Altman-Z score, with a value of 2.34, NRG belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
  • The Debt to FCF ratio of NRG is 21.47, which is on the high side as it means it would take NRG, 21.47 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 21.47, NRG belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • NRG has a Debt/Equity ratio of 9.76. This is a high value indicating a heavy dependency on external financing.
  • NRG has a Debt to Equity ratio of 9.76. This is amonst the worse of the industry: NRG underperforms 93.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Altman-Z 2.34
ROIC/WACC1.16
WACC7.25%
NRG Yearly LT Debt VS Equity VS FCFNRG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • NRG has a Current Ratio of 1.64. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
  • NRG has a better Current ratio (1.64) than 86.96% of its industry peers.
  • NRG has a Quick Ratio of 1.58. This is a normal value and indicates that NRG is financially healthy and should not expect problems in meeting its short term obligations.
  • With an excellent Quick ratio value of 1.58, NRG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.58
NRG Yearly Current Assets VS Current LiabilitesNRG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. NRG Growth Analysis

3.1 Past

  • The earnings per share for NRG have decreased strongly by -10.55% in the last year.
  • Measured over the past years, NRG shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.00% on average per year.
  • Looking at the last year, NRG shows a quite strong growth in Revenue. The Revenue has grown by 9.18% in the last year.
  • Measured over the past years, NRG shows a very strong growth in Revenue. The Revenue has been growing by 27.56% on average per year.
EPS 1Y (TTM)-10.55%
EPS 3Y16.34%
EPS 5Y31%
EPS Q2Q%-32.24%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y-0.88%
Revenue growth 5Y27.56%
Sales Q2Q%13.7%

3.2 Future

  • NRG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.88% yearly.
  • The Revenue is expected to grow by 5.83% on average over the next years.
EPS Next Y11.09%
EPS Next 2Y16.57%
EPS Next 3Y16.08%
EPS Next 5Y14.88%
Revenue Next Year20.33%
Revenue Next 2Y12.14%
Revenue Next 3Y6.71%
Revenue Next 5Y5.83%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
NRG Yearly Revenue VS EstimatesNRG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
NRG Yearly EPS VS EstimatesNRG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

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4

4. NRG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.84, the valuation of NRG can be described as rather expensive.
  • The rest of the industry has a similar Price/Earnings ratio as NRG.
  • Compared to an average S&P500 Price/Earnings ratio of 25.71, NRG is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 16.96, NRG is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, NRG is valued a bit cheaper.
Industry RankSector Rank
PE 18.84
Fwd PE 16.96
NRG Price Earnings VS Forward Price EarningsNRG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NRG is valued a bit more expensive than the industry average as 71.74% of the companies are valued more cheaply.
  • NRG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NRG is cheaper than 82.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 42.99
EV/EBITDA 13.93
NRG Per share dataNRG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as NRG's earnings are expected to grow with 16.08% in the coming years.
PEG (NY)1.7
PEG (5Y)0.61
EPS Next 2Y16.57%
EPS Next 3Y16.08%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. NRG Dividend Analysis

5.1 Amount

  • NRG has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.87, NRG's dividend is way lower than its industry peers. On top of this 82.61% of the companies listed in the same industry pay a better dividend than NRG!
  • NRG's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.25%

5.2 History

  • The dividend of NRG is nicely growing with an annual growth rate of 12.04%!
  • 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)12.04%
Div Incr Years5
Div Non Decr Years7
NRG Yearly Dividends per shareNRG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • NRG pays out 51.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • NRG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.57%
EPS Next 2Y16.57%
EPS Next 3Y16.08%
NRG Yearly Income VS Free CF VS DividendNRG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B
NRG Dividend Payout.NRG Dividend Payout, showing the Payout Ratio.NRG Dividend Payout.PayoutRetained Earnings

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NRG Fundamentals: All Metrics, Ratios and Statistics

NRG ENERGY INC

NYSE:NRG (3/16/2026, 11:50:07 AM)

153.39

+0.52 (+0.34%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-24
Earnings (Next)05-11
Inst Owners85%
Inst Owner Change1.63%
Ins Owners0.31%
Ins Owner Change-0.98%
Market Cap32.93B
Revenue(TTM)30.71B
Net Income(TTM)797.00M
Analysts78
Price Target193.91 (26.42%)
Short Float %2.35%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
Yearly Dividend2.11
Dividend Growth(5Y)12.04%
DP51.57%
Div Incr Years5
Div Non Decr Years7
Ex-Date02-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.14%
Min EPS beat(2)6.55%
Max EPS beat(2)29.74%
EPS beat(4)4
Avg EPS beat(4)30.17%
Min EPS beat(4)6.55%
Max EPS beat(4)77.8%
EPS beat(8)7
Avg EPS beat(8)61.45%
EPS beat(12)7
Avg EPS beat(12)-25.5%
EPS beat(16)9
Avg EPS beat(16)43.12%
Revenue beat(2)2
Avg Revenue beat(2)10.8%
Min Revenue beat(2)0.58%
Max Revenue beat(2)21.01%
Revenue beat(4)4
Avg Revenue beat(4)7.56%
Min Revenue beat(4)0.06%
Max Revenue beat(4)21.01%
Revenue beat(8)4
Avg Revenue beat(8)-3.63%
Revenue beat(12)6
Avg Revenue beat(12)3.71%
Revenue beat(16)10
Avg Revenue beat(16)17.92%
PT rev (1m)0.57%
PT rev (3m)1.8%
EPS NQ rev (1m)-14.52%
EPS NQ rev (3m)-13.9%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)-5.98%
Revenue NQ rev (3m)-7.62%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)3.02%
Valuation
Industry RankSector Rank
PE 18.84
Fwd PE 16.96
P/S 1.07
P/FCF 42.99
P/OCF 17.21
P/B 19.59
P/tB N/A
EV/EBITDA 13.93
EPS(TTM)8.14
EY5.31%
EPS(NY)9.04
Fwd EY5.9%
FCF(TTM)3.57
FCFY2.33%
OCF(TTM)8.91
OCFY5.81%
SpS143.06
BVpS7.83
TBVpS-26.29
PEG (NY)1.7
PEG (5Y)0.61
Graham Number37.87
Profitability
Industry RankSector Rank
ROA 2.74%
ROE 47.41%
ROCE 10.9%
ROIC 8.39%
ROICexc 10.8%
ROICexgc 19.51%
OM 7.5%
PM (TTM) 2.59%
GM 20.55%
FCFM 2.49%
ROA(3y)2.05%
ROA(5y)3.96%
ROE(3y)27.1%
ROE(5y)34.79%
ROIC(3y)9.33%
ROIC(5y)11.48%
ROICexc(3y)10.47%
ROICexc(5y)12.28%
ROICexgc(3y)22.09%
ROICexgc(5y)21.48%
ROCE(3y)12.12%
ROCE(5y)14.91%
ROICexgc growth 3Y10.87%
ROICexgc growth 5Y10.72%
ROICexc growth 3Y-0.24%
ROICexc growth 5Y1.31%
OM growth 3Y2.06%
OM growth 5Y-10.61%
PM growth 3Y-12.48%
PM growth 5Y-14.29%
GM growth 3Y16.51%
GM growth 5Y-6.06%
F-Score6
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Debt/EBITDA 5.13
Cap/Depr 128.01%
Cap/Sales 3.73%
Interest Coverage 4.02
Cash Conversion 59.82%
Profit Quality 96.11%
Current Ratio 1.64
Quick Ratio 1.58
Altman-Z 2.34
F-Score6
WACC7.25%
ROIC/WACC1.16
Cap/Depr(3y)71.25%
Cap/Depr(5y)57.14%
Cap/Sales(3y)2.5%
Cap/Sales(5y)1.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.55%
EPS 3Y16.34%
EPS 5Y31%
EPS Q2Q%-32.24%
EPS Next Y11.09%
EPS Next 2Y16.57%
EPS Next 3Y16.08%
EPS Next 5Y14.88%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y-0.88%
Revenue growth 5Y27.56%
Sales Q2Q%13.7%
Revenue Next Year20.33%
Revenue Next 2Y12.14%
Revenue Next 3Y6.71%
Revenue Next 5Y5.83%
EBIT growth 1Y30.94%
EBIT growth 3Y1.16%
EBIT growth 5Y14.03%
EBIT Next Year125.51%
EBIT Next 3Y38.2%
EBIT Next 5Y24.1%
FCF growth 1Y-58.23%
FCF growth 3YN/A
FCF growth 5Y-13.77%
OCF growth 1Y-17.04%
OCF growth 3Y74.5%
OCF growth 5Y0.81%

NRG ENERGY INC / NRG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of NRG ENERGY INC (NRG) stock?

ChartMill assigns a fundamental rating of 5 / 10 to NRG.


Can you provide the valuation status for NRG ENERGY INC?

ChartMill assigns a valuation rating of 4 / 10 to NRG ENERGY INC (NRG). This can be considered as Fairly Valued.


Can you provide the profitability details for NRG ENERGY INC?

NRG ENERGY INC (NRG) has a profitability rating of 4 / 10.


What is the financial health of NRG ENERGY INC (NRG) stock?

The financial health rating of NRG ENERGY INC (NRG) is 6 / 10.


How sustainable is the dividend of NRG ENERGY INC (NRG) stock?

The dividend rating of NRG ENERGY INC (NRG) is 5 / 10 and the dividend payout ratio is 51.57%.