NRG ENERGY INC (NRG) Fundamental Analysis & Valuation

NYSE:NRG • US6293775085

Current stock price

141.23 USD
-6.51 (-4.41%)
At close:
141.23 USD
0 (0%)
After Hours:

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.
  • 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.
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's Return On Assets of 2.74% is in line compared to the rest of the industry. NRG outperforms 53.19% of its industry peers.
  • NRG has a better Return On Equity (47.41%) than 100.00% of its industry peers.
  • NRG's Return On Invested Capital of 8.39% is amongst the best of the industry. NRG outperforms 95.74% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NRG is above the industry average of 4.52%.
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

  • The Profit Margin of NRG (2.59%) is worse than 89.36% of its industry peers.
  • In the last couple of years the Profit Margin of NRG has declined.
  • NRG has a Operating Margin of 7.50%. This is amonst the worse of the industry: NRG underperforms 87.23% of its industry peers.
  • NRG's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 20.55%, NRG is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
  • NRG's Gross Margin has declined in the last couple of years.
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

  • NRG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for NRG has been reduced compared to 1 year ago.
  • The number of shares outstanding for NRG has been reduced compared to 5 years ago.
  • Compared to 1 year ago, NRG has a worse debt to assets ratio.
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 2.31. 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 2.31, NRG belongs to the top of the industry, outperforming 93.62% 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.
  • Looking at the Debt to FCF ratio, with a value of 21.47, NRG belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
  • A Debt/Equity ratio of 9.76 is on the high side and indicates that NRG has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 9.76, NRG is doing worse than 93.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Altman-Z 2.31
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 87.23% 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.
  • NRG's Quick ratio of 1.58 is amongst the best of the industry. NRG outperforms 87.23% of its industry peers.
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.
  • NRG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.18%.
  • NRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.56% yearly.
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

  • The Earnings Per Share is expected to grow by 14.88% on average over the next years. This is quite good.
  • 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 Year17.83%
Revenue Next 2Y10.13%
Revenue Next 3Y7.52%
Revenue Next 5Y5.83%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

  • NRG is valuated rather expensively with a Price/Earnings ratio of 17.35.
  • 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 24.75, NRG is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 15.62, the valuation of NRG can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of NRG to the average of the S&P500 Index (22.10), we can say NRG is valued slightly cheaper.
Industry RankSector Rank
PE 17.35
Fwd PE 15.62
NRG Price Earnings VS Forward Price EarningsNRG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NRG is valued a bit more expensive than 68.09% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NRG is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 39.16
EV/EBITDA 13.48
NRG Per share dataNRG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • NRG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NRG's earnings are expected to grow with 16.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.57
PEG (5Y)0.56
EPS Next 2Y16.57%
EPS Next 3Y16.08%

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5

5. NRG Dividend Analysis

5.1 Amount

  • NRG has a Yearly Dividend Yield of 1.30%.
  • With a Dividend Yield of 1.30, NRG pays less dividend than the industry average, which is at 2.86. 82.98% of the companies listed in the same industry pay a better dividend than NRG!
  • Compared to the average S&P500 Dividend Yield of 1.89, NRG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.3%

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.
  • As NRG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
  • The dividend of NRG is growing, but earnings are growing more, so the dividend growth is 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 (3/30/2026, 8:21:05 PM)

After market: 141.23 0 (0%)

141.23

-6.51 (-4.41%)

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-1.07%
Market Cap29.99B
Revenue(TTM)30.71B
Net Income(TTM)797.00M
Analysts78
Price Target198.51 (40.56%)
Short Float %2.35%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 1.3%
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)2.37%
PT rev (3m)2.6%
EPS NQ rev (1m)-15.47%
EPS NQ rev (3m)-18.55%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)-7.15%
Revenue NQ rev (3m)-5.98%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)1.74%
Valuation
Industry RankSector Rank
PE 17.35
Fwd PE 15.62
P/S 0.98
P/FCF 39.16
P/OCF 15.68
P/B 17.84
P/tB N/A
EV/EBITDA 13.48
EPS(TTM)8.14
EY5.76%
EPS(NY)9.04
Fwd EY6.4%
FCF(TTM)3.61
FCFY2.55%
OCF(TTM)9.01
OCFY6.38%
SpS144.61
BVpS7.92
TBVpS-26.58
PEG (NY)1.57
PEG (5Y)0.56
Graham Number38.07
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 2.31
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 Year17.83%
Revenue Next 2Y10.13%
Revenue Next 3Y7.52%
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%.