NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
149.27 USD
+5.74 (+4%)
149.9 USD
+0.63 (+0.42%)
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. Both the profitability and the financial health of NRG get a neutral evaluation. Nothing too spectacular is happening here. 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.
NRG had positive earnings in 4 of the past 5 years.
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.
Looking at the Return On Equity, with a value of 69.75%, NRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 last Return On Invested Capital (11.56%) for NRG is above the 3 year average (10.16%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of NRG has declined.
NRG's Operating Margin of 8.13% is on the low side compared to the rest of the industry. NRG is outperformed by 86.96% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
With a Gross Margin value of 21.15%, NRG is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NRG has declined.
| 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
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
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 2.49. 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 Altman-Z score of 2.49. This is amongst the best in the industry. NRG outperforms 95.65% of its industry peers.
The Debt to FCF ratio of NRG is 6.99, which is on the high side as it means it would take NRG, 6.99 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 6.99, NRG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
NRG has a Debt/Equity ratio of 5.66. This is a high value indicating a heavy dependency on external financing.
NRG has a worse Debt to Equity ratio (5.66) than 93.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.51
WACC7.64%
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 better Current ratio (1.05) than 76.09% of its industry peers.
A Quick Ratio of 0.99 indicates that NRG may have some problems paying its short term obligations.
NRG's Quick ratio of 0.99 is fine compared to the rest of the industry. NRG outperforms 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.10%.
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.
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)-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
The Earnings Per Share is expected to grow by 9.67% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 17.30, the valuation of NRG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NRG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.19, NRG is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.20 indicates a correct valuation of NRG.
NRG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NRG to the average of the S&P500 Index (23.92), we can say NRG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NRG is on the same level as its industry peers.
84.78% 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 | 16.76 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.78
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 paid a dividend for at least 10 years, which is 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
NRG pays out 29.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of NRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.77%
EPS Next 2Y0.63%
EPS Next 3Y5.41%
149.27
+5.74 (+4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.25%
Inst Owner Change-0.06%
Ins Owners0.59%
Ins Owner Change-0.59%
Market Cap28.61B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.89
Price Target193.49 (29.62%)
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 | 17.3 | ||
| Fwd PE | 16.2 | ||
| P/S | 0.96 | ||
| P/FCF | 16.76 | ||
| P/OCF | 10.43 | ||
| P/B | 14.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.57 |
EPS(TTM)8.63
EY5.78%
EPS(NY)9.21
Fwd EY6.17%
FCF(TTM)8.91
FCFY5.97%
OCF(TTM)14.31
OCFY9.59%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.78
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 | 2.49 |
F-Score7
WACC7.64%
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%.