NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
152.05 USD
-6.45 (-4.07%)
152.05 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NRG. NRG was compared to 46 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
- With an excellent Return On Assets value of 5.73%, NRG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- NRG has a Return On Equity of 69.75%. This is amongst the best in the industry. NRG outperforms 100.00% of its industry peers.
- NRG has a better Return On Invested Capital (11.56%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NRG is significantly above the industry average of 4.58%.
- The 3 year average ROIC (10.16%) for NRG is below the current ROIC(11.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROIC | 11.56% |
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
- NRG's Profit Margin of 4.61% is on the low side compared to the rest of the industry. NRG is outperformed by 84.78% of its industry peers.
- NRG's Profit Margin has declined in the last couple of years.
- The Operating Margin of NRG (8.13%) is worse than 86.96% of its industry peers.
- NRG's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 21.15%, NRG is doing worse than 69.57% of the companies in the same industry.
- NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.13% | ||
| PM (TTM) | 4.61% | ||
| GM | 21.15% |
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
- 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
- NRG has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
- NRG has an Altman-Z score of 2.54. 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's Altman-Z score of 2.54 is amongst the best of the industry. NRG outperforms 95.65% of its industry peers.
- NRG has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as NRG would need 6.99 years to pay back of all of its debts.
- NRG has a Debt to FCF ratio of 6.99. This is amongst the best in the industry. NRG outperforms 86.96% of its industry peers.
- NRG has a Debt/Equity ratio of 5.66. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 5.66, NRG is doing worse than 93.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.51
WACC7.67%
2.3 Liquidity
- NRG has a Current Ratio of 1.05. 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 Current ratio of 1.05. This is in the better half of the industry: NRG outperforms 76.09% of its industry peers.
- NRG has a Quick Ratio of 1.05. 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 Quick ratio of NRG (0.99) is better than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- The earnings per share for NRG have decreased strongly by -10.10% in the last year.
- The Earnings Per Share has been growing by 22.12% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 5.91% in the past year.
- NRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.42% yearly.
EPS 1Y (TTM)-10.1%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%44.74%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
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 9.67% yearly.
- Based on estimates for the next years, NRG will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-11.05%
EPS Next 2Y0.63%
EPS Next 3Y5.41%
EPS Next 5Y9.67%
Revenue Next Year-2.93%
Revenue Next 2Y6.01%
Revenue Next 3Y5.68%
Revenue Next 5Y4.44%
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 17.62, NRG is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of NRG is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (27.54), we can say NRG is valued slightly cheaper.
- NRG is valuated correctly with a Price/Forward Earnings ratio of 16.50.
- NRG's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. NRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
- NRG's Enterprise Value to EBITDA is on the same level as the industry average.
- NRG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NRG is cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 12.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y0.63%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
- NRG has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 1.23, NRG pays less dividend than the industry average, which is at 3.46. 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
- The dividend of NRG is nicely growing with an annual growth rate of 75.36%!
- 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
- 29.77% 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.
DP29.77%
EPS Next 2Y0.63%
EPS Next 3Y5.41%
152.05
-6.45 (-4.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners94.25%
Inst Owner Change-0.06%
Ins Owners0.59%
Ins Owner Change-0.59%
Market Cap29.14B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.89
Price Target193.49 (27.25%)
Short Float %2.15%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP29.77%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.17%
Min EPS beat(2)6.61%
Max EPS beat(2)29.74%
EPS beat(4)4
Avg EPS beat(4)32.63%
Min EPS beat(4)6.61%
Max EPS beat(4)77.8%
EPS beat(8)6
Avg EPS beat(8)56.44%
EPS beat(12)6
Avg EPS beat(12)-45.25%
EPS beat(16)8
Avg EPS beat(16)-49.41%
Revenue beat(2)2
Avg Revenue beat(2)0.32%
Min Revenue beat(2)0.06%
Max Revenue beat(2)0.58%
Revenue beat(4)3
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-11%
Max Revenue beat(4)8.6%
Revenue beat(8)4
Avg Revenue beat(8)-5.59%
Revenue beat(12)6
Avg Revenue beat(12)14.6%
Revenue beat(16)10
Avg Revenue beat(16)22.86%
PT rev (1m)1.57%
PT rev (3m)8.68%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-28.9%
EPS NY rev (1m)0.48%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)-6.59%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 16.5 | ||
| P/S | 0.98 | ||
| P/FCF | 17.07 | ||
| P/OCF | 10.63 | ||
| P/B | 14.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.08 |
EPS(TTM)8.63
EY5.68%
EPS(NY)9.21
Fwd EY6.06%
FCF(TTM)8.91
FCFY5.86%
OCF(TTM)14.31
OCFY9.41%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.8
Graham Number44.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROCE | 14.89% | ||
| ROIC | 11.56% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 23.27% | ||
| OM | 8.13% | ||
| PM (TTM) | 4.61% | ||
| GM | 21.15% | ||
| FCFM | 5.73% |
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%
ROICexgc growth 3Y-2%
ROICexgc 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-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 101.37% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.69% | ||
| Profit Quality | 124.24% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.54 |
F-Score7
WACC7.67%
ROIC/WACC1.51
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)-10.1%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%44.74%
EPS Next Y-11.05%
EPS Next 2Y0.63%
EPS Next 3Y5.41%
EPS Next 5Y9.67%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
Revenue Next Year-2.93%
Revenue Next 2Y6.01%
Revenue Next 3Y5.68%
Revenue Next 5Y4.44%
EBIT growth 1Y205.17%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year75.89%
EBIT Next 3Y32.52%
EBIT Next 5Y24.08%
FCF growth 1Y169.11%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y247.42%
OCF growth 3Y67.24%
OCF growth 5Y11.07%
NRG ENERGY INC / NRG 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 5 / 10.
What is the financial health of NRG ENERGY INC (NRG) stock?
The financial health rating of NRG ENERGY INC (NRG) is 5 / 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 29.77%.