NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NRG • US6293775085
149.11 USD
-3.52 (-2.31%)
At close: Feb 2, 2026
148 USD
-1.11 (-0.74%)
After Hours: 2/2/2026, 8:27:43 PM
Overall NRG gets a fundamental rating of 5 out of 10. We evaluated NRG against 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
- The Return On Assets of NRG (5.73%) is better than 86.96% of its industry peers.
- NRG's Return On Equity of 69.75% is amongst the best of the industry. NRG outperforms 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.56%, NRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- NRG had an Average Return On Invested Capital over the past 3 years of 10.16%. This is significantly above the industry average of 4.57%.
- 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.
- NRG has a worse Operating Margin (8.13%) than 86.96% of its industry peers.
- In the last couple of years the Operating Margin of NRG has declined.
- NRG has a Gross Margin of 21.15%. This is in the lower half of the industry: NRG underperforms 69.57% of its industry peers.
- 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
- 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.
2.2 Solvency
- An Altman-Z score of 2.51 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.51, NRG belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.99, NRG belongs to the top 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 Debt to Equity ratio of 5.66. This is amonst the worse of the industry: NRG underperforms 93.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.5
WACC7.7%
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.
- The Current ratio of NRG (1.05) is better 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 has a better Quick ratio (0.99) 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.
- Measured over the past years, NRG shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.12% on average per year.
- Looking at the last year, NRG shows a small growth in Revenue. The Revenue has grown by 5.91% in the last 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.
- NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.44% yearly.
EPS Next Y-11.03%
EPS Next 2Y0.39%
EPS Next 3Y5.34%
EPS Next 5Y9.67%
Revenue Next Year-2.89%
Revenue Next 2Y6.46%
Revenue Next 3Y5.97%
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
- The Price/Earnings ratio is 17.28, which indicates a rather expensive current valuation of NRG.
- The rest of the industry has a similar Price/Earnings ratio as NRG.
- When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (28.41), we can say NRG is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 16.26, NRG is valued correctly.
- NRG's Price/Forward Earnings ratio is in line with the industry average.
- NRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
- NRG's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, NRG is valued cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.74 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y0.39%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
- NRG has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 1.24, NRG pays less dividend than the industry average, which is at 2.90. 82.61% of the companies listed in the same industry pay a better dividend than NRG!
- Compared to the average S&P500 Dividend Yield of 1.83, NRG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- On average, the dividend of NRG grows each year by 75.36%, 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)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.
- NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.77%
EPS Next 2Y0.39%
EPS Next 3Y5.34%
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%.