NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
168.54 USD
+4.73 (+2.89%)
169.01 USD
+0.47 (+0.28%)
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. NRG has only an average score on both its financial health and profitability. While showing a medium growth rate, NRG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NRG was profitable.
NRG had a positive operating cash flow in the past year.
Of the past 5 years NRG 4 years were profitable.
Of the past 5 years NRG 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.73%, NRG belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 69.75%, NRG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.65%, NRG belongs to the best 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's Operating Margin of 5.37% is on the low side compared to the rest of the industry. NRG is outperformed by 89.36% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
Looking at the Gross Margin, with a value of 18.40%, NRG is doing worse than 72.34% of the companies in the same industry.
In the last couple of years the Gross Margin of NRG has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NRG is still creating some value.
Compared to 1 year ago, NRG has less shares outstanding
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 2.49. 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.
NRG has a better Altman-Z score (2.49) than 93.62% 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.
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.
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 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.49 |
ROIC/WACC1
WACC7.62%
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.
Looking at the Current ratio, with a value of 1.05, NRG is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that NRG may have some problems paying its short term obligations.
NRG has a Quick ratio of 0.99. This is in the better half of the industry: NRG outperforms 72.34% 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 9.49% yearly.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
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
A Price/Earnings ratio of 19.53 indicates a rather expensive valuation of NRG.
NRG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (26.15), we can say NRG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.36, NRG is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NRG is on the same level as its industry peers.
NRG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
NRG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NRG is more expensive than 78.72% of the companies 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 | 19.1 | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.88
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.
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!
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
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 2Y0.43%
EPS Next 3Y5.83%
168.54
+4.73 (+2.89%)
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 Cap32.60B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts78.82
Price Target190.35 (12.94%)
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 | 19.53 | ||
| Fwd PE | 18.36 | ||
| P/S | 1.09 | ||
| P/FCF | 19.1 | ||
| P/OCF | 11.89 | ||
| P/B | 16.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.71 |
EPS(TTM)8.63
EY5.12%
EPS(NY)9.18
Fwd EY5.45%
FCF(TTM)8.82
FCFY5.24%
OCF(TTM)14.18
OCFY8.41%
SpS153.95
BVpS10.18
TBVpS-28.31
PEG (NY)N/A
PEG (5Y)0.88
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 | 2.49 |
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 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 19.53 and the Price/Book (PB) ratio is 16.55.
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.