NRG ENERGY INC (NRG) Stock Fundamental Analysis
NYSE:NRG - New York Stock Exchange, Inc. - US6293775085 - Common Stock
Taking everything into account, NRG scores 5 out of 10 in our fundamental rating. NRG was compared to 46 industry peers in the Electric Utilities industry. NRG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on NRG.
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.
Of the past 5 years NRG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NRG (3.78%) is better than 81.08% of its industry peers.
NRG has a better Return On Equity (35.60%) than 100.00% of its industry peers.
NRG has a worse Return On Invested Capital (3.56%) than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 35.6% | ||
| ROIC | 3.56% |
ROA(3y)4.21%
ROA(5y)10.3%
ROE(3y)27.95%
ROE(5y)76.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.19%, NRG is not doing good in the industry: 83.78% of the companies in the same industry are doing better.
NRG has a Operating Margin of 2.82%. This is amonst the worse of the industry: NRG underperforms 89.19% of its industry peers.
NRG has a worse Gross Margin (15.91%) than 75.68% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.82% | ||
| PM (TTM) | 3.19% | ||
| GM | 15.91% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-34.28%
GM growth 5Y-20.44%
2. Health
2.1 Basic Checks
NRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NRG has been reduced compared to 1 year ago.
NRG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NRG has a worse debt to assets ratio.
2.2 Solvency
NRG has an Altman-Z score of 2.02. 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.
With an excellent Altman-Z score value of 2.02, NRG belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
The Debt to FCF ratio of NRG is 8.87, which is on the high side as it means it would take NRG, 8.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.87, NRG belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
A Debt/Equity ratio of 4.14 is on the high side and indicates that NRG has dependencies on debt financing.
NRG has a Debt to Equity ratio of 4.14. This is amonst the worse of the industry: NRG underperforms 97.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 8.87 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.46
WACC7.79%
2.3 Liquidity
NRG has a Current Ratio of 1.17. 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 1.17. This is in the better half of the industry: NRG outperforms 72.97% of its industry peers.
NRG has a Quick Ratio of 1.10. 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 Quick ratio (1.10) than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
NRG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.15%, which is quite impressive.
NRG shows a decrease in Revenue. In the last year, the revenue decreased by -5.87%.
Measured over the past years, NRG shows a very strong growth in Revenue. The Revenue has been growing by 24.91% on average per year.
EPS 1Y (TTM)226.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.75%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y46.9%
Revenue growth 5Y24.91%
Sales Q2Q%-9.1%
3.2 Future
NRG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.75% yearly.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y698.03%
EPS Next 2Y186.8%
EPS Next 3Y107.2%
EPS Next 5Y60.75%
Revenue Next Year3.98%
Revenue Next 2Y3.7%
Revenue Next 3Y3.15%
Revenue Next 5Y3.02%
3.3 Evolution
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 11.62, the valuation of NRG can be described as very reasonable.
Based on the Price/Earnings ratio, NRG is valued a bit cheaper than 78.38% of the companies in the same industry.
NRG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 15.72, the valuation of NRG can be described as correct.
Based on the Price/Forward Earnings ratio, NRG is valued a bit cheaper than 67.57% of the companies in the same industry.
NRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
70.27% of the companies in the same industry are cheaper than NRG, based on the Enterprise Value to EBITDA ratio.
91.89% of the companies in the same industry are more expensive than NRG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.77 | ||
| EV/EBITDA | 15.11 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NRG's earnings are expected to grow with 107.20% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y186.8%
EPS Next 3Y107.2%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.54%.
Compared to an average industry Dividend Yield of 3.61, NRG is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.28, NRG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of NRG grows each year by 69.83%, which is quite nice.
NRG has paid a dividend for at least 10 years, which is 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)69.83%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
NRG pays out 45.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.48%
EPS Next 2Y186.8%
EPS Next 3Y107.2%
NRG ENERGY INC
NYSE:NRG (1/21/2025, 8:17:25 PM)
After market: 112.75 +1.2 (+1.08%)111.55
+7.04 (+6.74%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners98.3%
Inst Owner Change0.49%
Ins Owners0.61%
Ins Owner Change-2.38%
Market Cap22.60B
Analysts76
Price Target106.92 (-4.15%)
Short Float %5.7%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend1.74
Dividend Growth(5Y)69.83%
DP45.48%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)54.92%
Min EPS beat(2)-5.85%
Max EPS beat(2)115.68%
EPS beat(4)2
Avg EPS beat(4)80.25%
Min EPS beat(4)-33.55%
Max EPS beat(4)244.71%
EPS beat(8)2
Avg EPS beat(8)-84.19%
EPS beat(12)4
Avg EPS beat(12)-76.76%
EPS beat(16)7
Avg EPS beat(16)121.62%
Revenue beat(2)0
Avg Revenue beat(2)-22.26%
Min Revenue beat(2)-23.77%
Max Revenue beat(2)-20.75%
Revenue beat(4)1
Avg Revenue beat(4)-10.73%
Min Revenue beat(4)-23.77%
Max Revenue beat(4)5.34%
Revenue beat(8)3
Avg Revenue beat(8)22.11%
Revenue beat(12)7
Avg Revenue beat(12)30.63%
Revenue beat(16)11
Avg Revenue beat(16)41.01%
PT rev (1m)1.65%
PT rev (3m)16.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)156.32%
EPS NY rev (1m)0%
EPS NY rev (3m)23.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 15.72 | ||
| P/S | 0.8 | ||
| P/FCF | 18.77 | ||
| P/OCF | 14.17 | ||
| P/B | 8.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.11 |
EPS(TTM)9.6
EY8.61%
EPS(NY)7.1
Fwd EY6.36%
FCF(TTM)5.94
FCFY5.33%
OCF(TTM)7.87
OCFY7.06%
SpS138.81
BVpS12.44
TBVpS-27.57
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 35.6% | ||
| ROCE | 4.84% | ||
| ROIC | 3.56% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 8.12% | ||
| OM | 2.82% | ||
| PM (TTM) | 3.19% | ||
| GM | 15.91% | ||
| FCFM | 4.28% |
ROA(3y)4.21%
ROA(5y)10.3%
ROE(3y)27.95%
ROE(5y)76.37%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-34.28%
GM growth 5Y-20.44%
F-Score8
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 8.87 | ||
| Debt/EBITDA | 5.12 | ||
| Cap/Depr | 31.48% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.38% | ||
| Profit Quality | 134.23% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.02 |
F-Score8
WACC7.79%
ROIC/WACC0.46
Cap/Depr(3y)39.18%
Cap/Depr(5y)41.59%
Cap/Sales(3y)1.41%
Cap/Sales(5y)1.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)226.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%34.75%
EPS Next Y698.03%
EPS Next 2Y186.8%
EPS Next 3Y107.2%
EPS Next 5Y60.75%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y46.9%
Revenue growth 5Y24.91%
Sales Q2Q%-9.1%
Revenue Next Year3.98%
Revenue Next 2Y3.7%
Revenue Next 3Y3.15%
Revenue Next 5Y3.02%
EBIT growth 1Y143.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year73.59%
EBIT Next 3Y21.79%
EBIT Next 5Y13.81%
FCF growth 1Y1154.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y302.78%
OCF growth 3YN/A
OCF growth 5YN/A