NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
161.44 USD
-9.2 (-5.39%)
162.1 USD
+0.66 (+0.41%)
We assign a fundamental rating of 5 out of 10 to NRG. NRG was compared to 48 industry peers in the Electric Utilities industry. NRG has an average financial health and profitability rating. 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.
In the past year NRG had a positive cash flow from operations.
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 has a Return On Assets of 5.73%. This is amongst the best in the industry. NRG outperforms 87.50% 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.
With an excellent Return On Invested Capital value of 11.56%, NRG belongs to the best of the industry, outperforming 97.92% 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 4.95%.
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
Looking at the Profit Margin, with a value of 4.61%, NRG is doing worse than 85.42% 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 (8.13%) than 89.58% of its industry peers.
In the last couple of years the Operating Margin of NRG has declined.
The Gross Margin of NRG (21.15%) is worse than 72.92% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NRG is still creating some value.
NRG has less shares outstanding than it did 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
NRG has an Altman-Z score of 2.60. 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.
With an excellent Altman-Z score value of 2.60, NRG belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
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.
NRG has a better Debt to FCF ratio (6.99) than 85.42% 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.
The Debt to Equity ratio of NRG (5.66) is worse than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.51
WACC7.68%
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 70.83% 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 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.10%.
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.
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
Based on estimates for the next years, NRG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.67% on average per year.
Based on estimates for the next years, NRG will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-11.47%
EPS Next 2Y0.97%
EPS Next 3Y5.46%
EPS Next 5Y9.67%
Revenue Next Year-2.44%
Revenue Next 2Y6.46%
Revenue Next 3Y5.83%
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
Based on the Price/Earnings ratio of 18.71, the valuation of NRG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NRG indicates a slightly more expensive valuation: NRG is more expensive than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, NRG is valued a bit cheaper.
NRG is valuated rather expensively with a Price/Forward Earnings ratio of 17.40.
NRG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NRG is more expensive than 64.58% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, NRG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
68.75% of the companies in the same industry are cheaper than NRG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NRG indicates a rather cheap valuation: NRG is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.12 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y0.97%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.04%.
Compared to an average industry Dividend Yield of 3.42, NRG's dividend is way lower than its industry peers. On top of this 81.25% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.04, NRG pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of NRG is nicely growing with an annual growth rate of 75.36%!
NRG has been paying a dividend for at least 10 years, so it has a reliable track record.
As NRG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y0.97%
EPS Next 3Y5.46%
161.44
-9.2 (-5.39%)
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 Change0.04%
Market Cap30.94B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.78
Price Target190.49 (17.99%)
Short Float %2.43%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)4.93%
PT rev (3m)7.15%
EPS NQ rev (1m)-20.28%
EPS NQ rev (3m)-31.18%
EPS NY rev (1m)2.21%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)-1.84%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 17.4 | ||
| P/S | 1.04 | ||
| P/FCF | 18.12 | ||
| P/OCF | 11.28 | ||
| P/B | 15.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.76 |
EPS(TTM)8.63
EY5.35%
EPS(NY)9.28
Fwd EY5.75%
FCF(TTM)8.91
FCFY5.52%
OCF(TTM)14.31
OCFY8.86%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.85
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 | 2.6 |
F-Score7
WACC7.68%
ROIC/WACC1.51
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-11.47%
EPS Next 2Y0.97%
EPS Next 3Y5.46%
EPS Next 5Y9.67%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
Revenue Next Year-2.44%
Revenue Next 2Y6.46%
Revenue Next 3Y5.83%
Revenue Next 5Y4.44%
EBIT growth 1Y205.17%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year75.41%
EBIT Next 3Y33.23%
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.
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 18.71 and the Price/Book (PB) ratio is 15.7.
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 -11.47% in the next year.