NRG ENERGY INC (NRG) Fundamental Analysis & Valuation

NYSE:NRG • US6293775085

Current stock price

145.8 USD
-15.6 (-9.67%)
At close:
147.4 USD
+1.6 (+1.1%)
After Hours:

This NRG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. NRG Profitability Analysis

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.
NRG Yearly Net Income VS EBIT VS OCF VS FCFNRG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.74%, NRG is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • With an excellent Return On Equity value of 47.41%, NRG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • NRG's Return On Invested Capital of 8.39% is amongst the best of the industry. NRG outperforms 95.65% of its industry peers.
  • NRG had an Average Return On Invested Capital over the past 3 years of 9.33%. This is above the industry average of 4.49%.
Industry RankSector Rank
ROA 2.74%
ROE 47.41%
ROIC 8.39%
ROA(3y)2.05%
ROA(5y)3.96%
ROE(3y)27.1%
ROE(5y)34.79%
ROIC(3y)9.33%
ROIC(5y)11.48%
NRG Yearly ROA, ROE, ROICNRG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 400 600

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.59%, NRG is doing worse than 86.96% of the companies in the same industry.
  • NRG's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 7.50%, NRG is doing worse than 86.96% of the companies in the same industry.
  • NRG's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 20.55%, NRG is doing worse than 69.57% of the companies in the same industry.
  • NRG's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 7.5%
PM (TTM) 2.59%
GM 20.55%
OM growth 3Y2.06%
OM growth 5Y-10.61%
PM growth 3Y-12.48%
PM growth 5Y-14.29%
GM growth 3Y16.51%
GM growth 5Y-6.06%
NRG Yearly Profit, Operating, Gross MarginsNRG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. NRG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NRG is creating some value.
  • Compared to 1 year ago, NRG has less shares outstanding
  • NRG has less shares outstanding than it did 5 years ago.
  • NRG has a worse debt/assets ratio than last year.
NRG Yearly Shares OutstandingNRG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
NRG Yearly Total Debt VS Total AssetsNRG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • NRG has an Altman-Z score of 2.38. 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.
  • The Altman-Z score of NRG (2.38) is better than 93.48% of its industry peers.
  • NRG has a debt to FCF ratio of 21.47. This is a negative value and a sign of low solvency as NRG would need 21.47 years to pay back of all of its debts.
  • NRG has a better Debt to FCF ratio (21.47) than 82.61% of its industry peers.
  • A Debt/Equity ratio of 9.76 is on the high side and indicates that NRG has dependencies on debt financing.
  • The Debt to Equity ratio of NRG (9.76) is worse than 93.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Altman-Z 2.38
ROIC/WACC1.17
WACC7.17%
NRG Yearly LT Debt VS Equity VS FCFNRG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.64 indicates that NRG should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.64, NRG belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • A Quick Ratio of 1.58 indicates that NRG should not have too much problems paying its short term obligations.
  • NRG has a Quick ratio of 1.58. This is amongst the best in the industry. NRG outperforms 86.96% of its industry peers.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.58
NRG Yearly Current Assets VS Current LiabilitesNRG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. NRG Growth Analysis

3.1 Past

  • The earnings per share for NRG have decreased strongly by -10.55% 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 31.00% on average per year.
  • The Revenue has grown by 9.18% in the past year. This is quite good.
  • NRG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.56% yearly.
EPS 1Y (TTM)-10.55%
EPS 3Y16.34%
EPS 5Y31%
EPS Q2Q%-32.24%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y-0.88%
Revenue growth 5Y27.56%
Sales Q2Q%13.7%

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 14.88% yearly.
  • Based on estimates for the next years, NRG will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y11.09%
EPS Next 2Y16.57%
EPS Next 3Y16.08%
EPS Next 5Y14.88%
Revenue Next Year20.33%
Revenue Next 2Y12.14%
Revenue Next 3Y6.71%
Revenue Next 5Y5.83%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
NRG Yearly Revenue VS EstimatesNRG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
NRG Yearly EPS VS EstimatesNRG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

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4

4. NRG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 17.91, which indicates a rather expensive current valuation of NRG.
  • NRG's Price/Earnings is on the same level as the industry average.
  • NRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.23.
  • NRG is valuated correctly with a Price/Forward Earnings ratio of 16.12.
  • 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 23.28, NRG is valued a bit cheaper.
Industry RankSector Rank
PE 17.91
Fwd PE 16.12
NRG Price Earnings VS Forward Price EarningsNRG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 73.91% of the companies in the same industry.
  • 82.61% of the companies in the same industry are more expensive than NRG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 40.86
EV/EBITDA 14.5
NRG Per share dataNRG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NRG's earnings are expected to grow with 16.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)0.58
EPS Next 2Y16.57%
EPS Next 3Y16.08%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. NRG Dividend Analysis

5.1 Amount

  • NRG has a Yearly Dividend Yield of 1.25%.
  • With a Dividend Yield of 1.25, NRG pays less dividend than the industry average, which is at 2.87. 82.61% of the companies listed in the same industry pay a better dividend than NRG!
  • NRG's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.25%

5.2 History

  • The dividend of NRG is nicely growing with an annual growth rate of 12.04%!
  • NRG has paid a dividend for at least 10 years, which is 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)12.04%
Div Incr Years5
Div Non Decr Years7
NRG Yearly Dividends per shareNRG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • NRG pays out 51.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • NRG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.57%
EPS Next 2Y16.57%
EPS Next 3Y16.08%
NRG Yearly Income VS Free CF VS DividendNRG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B
NRG Dividend Payout.NRG Dividend Payout, showing the Payout Ratio.NRG Dividend Payout.PayoutRetained Earnings

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NRG Fundamentals: All Metrics, Ratios and Statistics

NRG ENERGY INC

NYSE:NRG (3/20/2026, 8:04:00 PM)

After market: 147.4 +1.6 (+1.1%)

145.8

-15.6 (-9.67%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-24
Earnings (Next)05-11
Inst Owners85%
Inst Owner Change1.63%
Ins Owners0.31%
Ins Owner Change-0.98%
Market Cap31.30B
Revenue(TTM)30.71B
Net Income(TTM)797.00M
Analysts78
Price Target193.91 (33%)
Short Float %2.35%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
Yearly Dividend2.11
Dividend Growth(5Y)12.04%
DP51.57%
Div Incr Years5
Div Non Decr Years7
Ex-Date02-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.14%
Min EPS beat(2)6.55%
Max EPS beat(2)29.74%
EPS beat(4)4
Avg EPS beat(4)30.17%
Min EPS beat(4)6.55%
Max EPS beat(4)77.8%
EPS beat(8)7
Avg EPS beat(8)61.45%
EPS beat(12)7
Avg EPS beat(12)-25.5%
EPS beat(16)9
Avg EPS beat(16)43.12%
Revenue beat(2)2
Avg Revenue beat(2)10.8%
Min Revenue beat(2)0.58%
Max Revenue beat(2)21.01%
Revenue beat(4)4
Avg Revenue beat(4)7.56%
Min Revenue beat(4)0.06%
Max Revenue beat(4)21.01%
Revenue beat(8)4
Avg Revenue beat(8)-3.63%
Revenue beat(12)6
Avg Revenue beat(12)3.71%
Revenue beat(16)10
Avg Revenue beat(16)17.92%
PT rev (1m)0.57%
PT rev (3m)1.8%
EPS NQ rev (1m)-14.52%
EPS NQ rev (3m)-13.9%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)-5.98%
Revenue NQ rev (3m)-7.62%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)3.02%
Valuation
Industry RankSector Rank
PE 17.91
Fwd PE 16.12
P/S 1.02
P/FCF 40.86
P/OCF 16.36
P/B 18.62
P/tB N/A
EV/EBITDA 14.5
EPS(TTM)8.14
EY5.58%
EPS(NY)9.04
Fwd EY6.2%
FCF(TTM)3.57
FCFY2.45%
OCF(TTM)8.91
OCFY6.11%
SpS143.06
BVpS7.83
TBVpS-26.29
PEG (NY)1.62
PEG (5Y)0.58
Graham Number37.87
Profitability
Industry RankSector Rank
ROA 2.74%
ROE 47.41%
ROCE 10.9%
ROIC 8.39%
ROICexc 10.8%
ROICexgc 19.51%
OM 7.5%
PM (TTM) 2.59%
GM 20.55%
FCFM 2.49%
ROA(3y)2.05%
ROA(5y)3.96%
ROE(3y)27.1%
ROE(5y)34.79%
ROIC(3y)9.33%
ROIC(5y)11.48%
ROICexc(3y)10.47%
ROICexc(5y)12.28%
ROICexgc(3y)22.09%
ROICexgc(5y)21.48%
ROCE(3y)12.12%
ROCE(5y)14.91%
ROICexgc growth 3Y10.87%
ROICexgc growth 5Y10.72%
ROICexc growth 3Y-0.24%
ROICexc growth 5Y1.31%
OM growth 3Y2.06%
OM growth 5Y-10.61%
PM growth 3Y-12.48%
PM growth 5Y-14.29%
GM growth 3Y16.51%
GM growth 5Y-6.06%
F-Score6
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 9.76
Debt/FCF 21.47
Debt/EBITDA 5.13
Cap/Depr 128.01%
Cap/Sales 3.73%
Interest Coverage 4.02
Cash Conversion 59.82%
Profit Quality 96.11%
Current Ratio 1.64
Quick Ratio 1.58
Altman-Z 2.38
F-Score6
WACC7.17%
ROIC/WACC1.17
Cap/Depr(3y)71.25%
Cap/Depr(5y)57.14%
Cap/Sales(3y)2.5%
Cap/Sales(5y)1.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.55%
EPS 3Y16.34%
EPS 5Y31%
EPS Q2Q%-32.24%
EPS Next Y11.09%
EPS Next 2Y16.57%
EPS Next 3Y16.08%
EPS Next 5Y14.88%
Revenue 1Y (TTM)9.18%
Revenue growth 3Y-0.88%
Revenue growth 5Y27.56%
Sales Q2Q%13.7%
Revenue Next Year20.33%
Revenue Next 2Y12.14%
Revenue Next 3Y6.71%
Revenue Next 5Y5.83%
EBIT growth 1Y30.94%
EBIT growth 3Y1.16%
EBIT growth 5Y14.03%
EBIT Next Year125.51%
EBIT Next 3Y38.2%
EBIT Next 5Y24.1%
FCF growth 1Y-58.23%
FCF growth 3YN/A
FCF growth 5Y-13.77%
OCF growth 1Y-17.04%
OCF growth 3Y74.5%
OCF growth 5Y0.81%

NRG ENERGY INC / NRG Fundamental Analysis 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 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 4 / 10.


What is the financial health of NRG ENERGY INC (NRG) stock?

The financial health rating of NRG ENERGY INC (NRG) is 6 / 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 51.57%.