NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
166.85 USD
+7.65 (+4.81%)
167.05 USD
+0.2 (+0.12%)
We assign a fundamental rating of 5 out of 10 to NRG. NRG was compared to 47 industry peers in the Electric Utilities industry. NRG has only an average score on both its financial health and profitability. NRG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
1.2 Ratios
The Return On Assets of NRG (5.73%) is better than 87.23% of its industry peers.
With an excellent Return On Equity value of 69.75%, NRG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.65%, NRG belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NRG is significantly above the industry average of 4.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROIC | 7.65% |
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
Looking at the Profit Margin, with a value of 4.61%, NRG is doing worse than 85.11% of the companies in the same industry.
In the last couple of years the Profit Margin of NRG has declined.
NRG has a worse Operating Margin (5.37%) than 89.36% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
NRG's Gross Margin of 18.40% is on the low side compared to the rest of the industry. NRG is outperformed by 72.34% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.37% | ||
| PM (TTM) | 4.61% | ||
| GM | 18.4% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NRG 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 2.44 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
NRG has a better Altman-Z score (2.44) than 93.62% of its industry peers.
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 85.11% of the companies in the same industry.
A Debt/Equity ratio of 5.66 is on the high side and indicates that NRG has dependencies on debt financing.
The Debt to Equity ratio of NRG (5.66) is worse than 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.44 |
ROIC/WACC1
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.05 indicates that NRG should not have too much problems paying its short term obligations.
NRG has a better Current ratio (1.05) than 70.21% of its industry peers.
NRG has a Quick Ratio of 1.05. This is a bad value and indicates that NRG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.99, NRG is doing good in the industry, outperforming 72.34% of the companies in the same industry.
| 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.
NRG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.12% yearly.
The Revenue has been growing slightly by 5.91% in the past year.
The Revenue has been growing by 23.42% on average over the past years. This is a very strong growth!
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 9.49% 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 3.99% on average per year.
EPS Next Y-13.38%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
EPS Next 5Y9.49%
Revenue Next Year-2.2%
Revenue Next 2Y3.7%
Revenue Next 3Y3.49%
Revenue Next 5Y3.99%
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
A Price/Earnings ratio of 19.33 indicates a rather expensive valuation of NRG.
The rest of the industry has a similar Price/Earnings ratio as NRG.
NRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.65.
NRG is valuated rather expensively with a Price/Forward Earnings ratio of 18.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.45. NRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NRG is valued a bit more expensive than 78.72% of the companies in the same industry.
80.85% 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 | 18.91 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y0.43%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, NRG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.39, NRG's dividend is way lower than its industry peers. On top of this 80.85% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.10, NRG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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.
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
29.77% of the earnings are spent on dividend by NRG. This is a low number and sustainable payout ratio.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.77%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
166.85
+7.65 (+4.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-4.15%
Ins Owners0.61%
Ins Owner Change-0.64%
Market Cap32.27B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts78.82
Price Target190.35 (14.08%)
Short Float %2.39%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP29.77%
Div Incr Years5
Div Non Decr Years7
Ex-Date
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)6.92%
PT rev (3m)7.55%
EPS NQ rev (1m)-16.46%
EPS NQ rev (3m)-10.3%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)8.95%
Revenue NQ rev (3m)8.95%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 18.18 | ||
| P/S | 1.08 | ||
| P/FCF | 18.91 | ||
| P/OCF | 11.77 | ||
| P/B | 16.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.02 |
EPS(TTM)8.63
EY5.17%
EPS(NY)9.18
Fwd EY5.5%
FCF(TTM)8.82
FCFY5.29%
OCF(TTM)14.18
OCFY8.5%
SpS153.95
BVpS10.18
TBVpS-28.31
PEG (NY)N/A
PEG (5Y)0.87
Graham Number44.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROCE | 9.84% | ||
| ROIC | 7.65% | ||
| ROICexc | 8.01% | ||
| ROICexgc | 15.38% | ||
| OM | 5.37% | ||
| PM (TTM) | 4.61% | ||
| GM | 18.4% | ||
| 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 | 4.26 | ||
| Cap/Depr | 101.37% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.62% | ||
| Profit Quality | 124.24% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.44 |
F-Score7
WACC7.65%
ROIC/WACC1
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-13.38%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
EPS Next 5Y9.49%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
Revenue Next Year-2.2%
Revenue Next 2Y3.7%
Revenue Next 3Y3.49%
Revenue Next 5Y3.99%
EBIT growth 1Y101.77%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year77.53%
EBIT Next 3Y32.24%
EBIT Next 5Y22.21%
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.
What is the valuation status for NRG stock?
ChartMill assigns a valuation rating of 3 / 10 to NRG ENERGY INC (NRG). This can be considered as Overvalued.
Can you provide the profitability details for NRG ENERGY INC?
NRG ENERGY INC (NRG) has a profitability rating of 5 / 10.
What is the valuation of NRG ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NRG ENERGY INC (NRG) is 19.33 and the Price/Book (PB) ratio is 16.38.
Can you provide the expected EPS growth for NRG stock?
The Earnings per Share (EPS) of NRG ENERGY INC (NRG) is expected to decline by -13.38% in the next year.