NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
159.24 USD
-1.19 (-0.74%)
159 USD
-0.24 (-0.15%)
Taking everything into account, NRG scores 5 out of 10 in our fundamental rating. NRG was compared to 47 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NRG was profitable.
NRG had a positive operating cash flow in the past year.
NRG had positive earnings in 4 of the past 5 years.
Of the past 5 years NRG 4 years had a positive operating cash flow.
1.2 Ratios
NRG's Return On Assets of 5.73% is amongst the best of the industry. NRG outperforms 87.23% of its industry peers.
NRG has a Return On Equity of 69.75%. This is amongst the best in the industry. NRG outperforms 100.00% of its industry peers.
NRG has a better Return On Invested Capital (11.56%) than 100.00% of its industry peers.
NRG had an Average Return On Invested Capital over the past 3 years of 10.16%. This is significantly above the industry average of 5.04%.
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
With a Profit Margin value of 4.61%, NRG is not doing good in the industry: 85.11% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of NRG has declined.
Looking at the Operating Margin, with a value of 8.13%, NRG is doing worse than 87.23% of the companies in the same industry.
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 70.21% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| 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
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.
The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NRG (2.55) is better than 95.74% 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.
The Debt to FCF ratio of NRG (6.99) is better than 87.23% of its industry peers.
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 93.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.5
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.05 indicates that NRG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.05, NRG is doing good in the industry, outperforming 74.47% of the companies in the same industry.
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.
NRG has a Quick ratio of 0.99. This is in the better half of the industry: NRG outperforms 74.47% 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.
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.
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-11.05%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 18.45 indicates a rather expensive valuation of NRG.
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 26.51, NRG is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.28, which indicates a rather expensive current valuation of NRG.
The rest of the industry has a similar Price/Forward Earnings ratio as NRG.
The average S&P500 Price/Forward Earnings ratio is at 23.13. NRG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
61.70% of the companies in the same industry are cheaper than NRG, based on the Enterprise Value to EBITDA ratio.
85.11% 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 | 17.88 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y0.63%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 3.02, NRG's dividend is way lower than its industry peers. On top of this 82.98% 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 2.00.
| 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
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%
159.24
-1.19 (-0.74%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.96%
Inst Owner Change-4.03%
Ins Owners0.61%
Ins Owner Change-0.51%
Market Cap30.52B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.78
Price Target193.49 (21.51%)
Short Float %2.15%
Short Ratio2.08
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-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)1.65%
PT rev (3m)8.83%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-31.88%
EPS NY rev (1m)2.69%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)-6.59%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 17.28 | ||
| P/S | 1.02 | ||
| P/FCF | 17.88 | ||
| P/OCF | 11.13 | ||
| P/B | 15.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.12 |
EPS(TTM)8.63
EY5.42%
EPS(NY)9.21
Fwd EY5.79%
FCF(TTM)8.91
FCFY5.59%
OCF(TTM)14.31
OCFY8.99%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.83
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 | 2.55 |
F-Score7
WACC7.7%
ROIC/WACC1.5
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 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 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%.