NRG ENERGY INC (NRG)
US6293775085 - Common Stock
Overall NRG gets a fundamental rating of 5 out of 10. We evaluated NRG against 47 industry peers in the Electric Utilities industry. While NRG seems to be doing ok healthwise, there are quite some concerns on its profitability. NRG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year NRG was profitable.
NRG had a positive operating cash flow in the past year.
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 decent Return On Assets value of 3.78%, NRG is doing good in the industry, outperforming 77.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 35.60%, NRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With a Return On Invested Capital value of 3.56%, NRG is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
| 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: 86.67% of the companies in the same industry are doing better.
NRG's Operating Margin of 2.82% is on the low side compared to the rest of the industry. NRG is outperformed by 91.11% of its industry peers.
NRG's Gross Margin of 15.91% is on the low side compared to the rest of the industry. NRG is outperformed by 80.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NRG 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 1.98. 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.
The Altman-Z score of NRG (1.98) is better than 84.44% of its industry peers.
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.
The Debt to FCF ratio of NRG (8.87) is better than 84.44% of its industry peers.
NRG has a Debt/Equity ratio of 4.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.14, NRG is doing worse than 97.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | 8.87 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.47
WACC7.53%
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's Current ratio of 1.17 is fine compared to the rest of the industry. NRG outperforms 62.22% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 225.49% over the past year.
Looking at the last year, NRG shows a decrease in Revenue. The Revenue has decreased by -5.87% in the last year.
NRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.91% yearly.
EPS 1Y (TTM)225.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%31.21%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y46.9%
Revenue growth 5Y24.91%
Sales Q2Q%-9.1%
3.2 Future
The Earnings Per Share is expected to grow by 63.86% on average over the next years. This is a very strong growth
Based on estimates for the next years, NRG will show a small growth in Revenue. The Revenue will grow by 2.83% on average per year.
EPS Next Y691.26%
EPS Next 2Y183.26%
EPS Next 3Y102.49%
EPS Next 5Y63.86%
Revenue Next Year2.9%
Revenue Next 2Y2.66%
Revenue Next 3Y2.33%
Revenue Next 5Y2.83%
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
A Price/Earnings ratio of 10.03 indicates a reasonable valuation of NRG.
NRG's Price/Earnings ratio is a bit cheaper when compared to the industry. NRG is cheaper than 77.78% 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 28.96.
NRG is valuated correctly with a Price/Forward Earnings ratio of 13.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG indicates a somewhat cheap valuation: NRG is cheaper than 68.89% of the companies listed in the same industry.
NRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NRG is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaper than 84.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.42 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
NRG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NRG's earnings are expected to grow with 102.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y183.26%
EPS Next 3Y102.49%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
NRG's Dividend Yield is slightly below the industry average, which is at 3.44.
NRG's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 Years4
Div Non Decr Years6
5.3 Sustainability
45.48% of the earnings are spent on dividend by NRG. 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 2Y183.26%
EPS Next 3Y102.49%
NRG ENERGY INC
NYSE:NRG (11/22/2024, 12:46:23 PM)
95.8
-1.09 (-1.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 13.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 35.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.82% | ||
| PM (TTM) | 3.19% | ||
| GM | 15.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)225.49%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y691.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y46.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y