NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
163.81 USD
-3.04 (-1.82%)
163.86 USD
+0.05 (+0.03%)
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 not valued too expensively and it also shows a decent growth rate.
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.
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
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 better Return On Equity (69.75%) than 100.00% of its industry peers.
NRG's Return On Invested Capital of 7.65% is amongst the best of the industry. NRG outperforms 87.23% of its industry peers.
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.
NRG's Profit Margin has declined in the last couple of years.
NRG has a Operating Margin of 5.37%. This is amonst the worse of the industry: NRG underperforms 89.36% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
With a Gross Margin value of 18.40%, NRG is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
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.
NRG has less shares outstanding than it did 1 year ago.
NRG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
NRG has an Altman-Z score of 2.48. 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 2.48, NRG belongs to the top of the industry, outperforming 93.62% 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.
NRG has a better Debt to FCF ratio (6.99) than 85.11% 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.
With a Debt to Equity ratio value of 5.66, NRG is not doing good in the industry: 95.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.48 |
ROIC/WACC1
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.05 indicates that NRG should not have too much problems paying its short term obligations.
NRG's Current ratio of 1.05 is fine compared to the rest of the industry. NRG outperforms 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.
Looking at the Quick ratio, with a value of 0.99, NRG is in the better half of 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.
The Earnings Per Share has been growing by 22.12% on average over the past years. This is a very strong growth
Looking at the last year, NRG shows a small growth in Revenue. The Revenue has grown by 5.91% in the last 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 9.49% 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.
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 18.98, the valuation of NRG can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as NRG.
The average S&P500 Price/Earnings ratio is at 25.98. NRG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.85, the valuation of NRG can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NRG.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, NRG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NRG indicates a slightly more expensive valuation: NRG is more expensive than 78.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.56 | ||
| EV/EBITDA | 16.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y0.43%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.10, NRG pays less dividend than the industry average, which is at 3.39. 80.85% of the companies listed in the same industry pay a better dividend than NRG!
Compared to an average S&P500 Dividend Yield of 2.41, NRG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
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%
163.81
-3.04 (-1.82%)
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 Cap31.69B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts78.82
Price Target190.35 (16.2%)
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 | 18.98 | ||
| Fwd PE | 17.85 | ||
| P/S | 1.06 | ||
| P/FCF | 18.56 | ||
| P/OCF | 11.56 | ||
| P/B | 16.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.59 |
EPS(TTM)8.63
EY5.27%
EPS(NY)9.18
Fwd EY5.6%
FCF(TTM)8.82
FCFY5.39%
OCF(TTM)14.18
OCFY8.65%
SpS153.95
BVpS10.18
TBVpS-28.31
PEG (NY)N/A
PEG (5Y)0.86
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 | 2.48 |
F-Score7
WACC7.62%
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 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 valuation of NRG ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NRG ENERGY INC (NRG) is 18.98 and the Price/Book (PB) ratio is 16.08.
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.