NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
152.05 USD
-6.45 (-4.07%)
151.17 USD
-0.88 (-0.58%)
NRG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. NRG has only an average score on both its financial health and profitability. NRG has a correct valuation and a medium 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.
- NRG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- NRG has a better Return On Assets (5.73%) than 86.96% of its industry peers.
- NRG has a better Return On Equity (69.75%) than 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 100.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NRG is significantly above the industry average of 4.58%.
- The last Return On Invested Capital (11.56%) for NRG is above the 3 year average (10.16%), which is a sign of increasing profitability.
| 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
- NRG has a worse Profit Margin (4.61%) than 84.78% of its industry peers.
- NRG's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 8.13%, NRG is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of NRG has declined.
- With a Gross Margin value of 21.15%, NRG is not doing good in the industry: 69.57% 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 | 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.
- NRG has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NRG has less shares outstanding
- Compared to 1 year ago, NRG has a worse debt to assets ratio.
2.2 Solvency
- NRG has an Altman-Z score of 2.51. 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 2.51, NRG belongs to the best of the industry, outperforming 95.65% 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 86.96% of its industry peers.
- A Debt/Equity ratio of 5.66 is on the high side and indicates that NRG has dependencies on debt financing.
- NRG has a Debt to Equity ratio of 5.66. This is amonst the worse of the industry: NRG underperforms 93.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.51 |
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.
- NRG has a better Current ratio (1.05) than 76.09% 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.
- With a decent Quick ratio value of 0.99, NRG is doing good in the industry, outperforming 76.09% of the companies in the same industry.
| 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.
- The Revenue has been growing by 23.42% on average over the past years. This is a very strong growth!
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.
- The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-11.05%
EPS Next 2Y0.63%
EPS Next 3Y5.41%
EPS Next 5Y9.67%
Revenue Next Year-2.86%
Revenue Next 2Y6.46%
Revenue Next 3Y5.98%
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
- With a Price/Earnings ratio of 17.62, NRG is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as NRG.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, NRG is valued a bit cheaper.
- A Price/Forward Earnings ratio of 16.50 indicates a correct valuation of NRG.
- The rest of the industry has a similar Price/Forward Earnings ratio as NRG.
- NRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NRG.
- Based on the Price/Free Cash Flow ratio, NRG is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 11.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y0.63%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
- NRG has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 1.11, NRG pays less dividend than the industry average, which is at 3.00. 82.61% of the companies listed in the same industry pay a better dividend than NRG!
- Compared to an average S&P500 Dividend Yield of 1.87, NRG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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.
- 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%
152.05
-6.45 (-4.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners94.25%
Inst Owner Change-0.06%
Ins Owners0.59%
Ins Owner Change-0.59%
Market Cap29.14B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.89
Price Target193.91 (27.53%)
Short Float %2.15%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)1.8%
PT rev (3m)8.92%
EPS NQ rev (1m)7.55%
EPS NQ rev (3m)-30.06%
EPS NY rev (1m)0.48%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 16.5 | ||
| P/S | 0.98 | ||
| P/FCF | 17.07 | ||
| P/OCF | 10.63 | ||
| P/B | 14.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.72 |
EPS(TTM)8.63
EY5.68%
EPS(NY)9.21
Fwd EY6.06%
FCF(TTM)8.91
FCFY5.86%
OCF(TTM)14.31
OCFY9.41%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.8
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 | 2.51 |
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-2.86%
Revenue Next 2Y6.46%
Revenue Next 3Y5.98%
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 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 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%.