NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
150.68 USD
+1.77 (+1.19%)
150.78 USD
+0.1 (+0.07%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- NRG had positive earnings in the past year.
- In the past year NRG had a positive cash flow from operations.
- 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's Return On Assets of 5.73% is amongst the best of the industry. NRG outperforms 86.96% of its industry peers.
- 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 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 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
- NRG has a worse Profit Margin (4.61%) than 84.78% of its industry peers.
- In the last couple of years the Profit Margin of NRG has declined.
- NRG has a Operating Margin of 8.13%. This is amonst the worse of the industry: NRG underperforms 86.96% of its industry peers.
- NRG's Operating Margin has declined in the last couple of years.
- NRG has a worse Gross Margin (21.15%) than 69.57% of its industry peers.
- 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.
- The number of shares outstanding for NRG has been reduced compared to 1 year ago.
- Compared to 5 years ago, NRG has less shares outstanding
- NRG has a worse debt/assets ratio than last year.
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.
- The Altman-Z score of NRG (2.49) is better than 95.65% 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.
- The Debt to FCF ratio of NRG (6.99) is better than 86.96% 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.
- 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 | 2.49 |
ROIC/WACC1.49
WACC7.74%
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.
- With a decent Current ratio value of 1.05, NRG is doing good in the industry, outperforming 76.09% 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 76.09% 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%.
- NRG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.12% yearly.
- NRG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.91%.
- 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 9.67% 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 17.46, NRG is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as NRG.
- NRG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- With a Price/Forward Earnings ratio of 16.35, NRG is valued correctly.
- NRG's Price/Forward Earnings is on the same level as the industry average.
- NRG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
- NRG's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 16.92 | ||
| EV/EBITDA | 11.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y0.63%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
- NRG has a Yearly Dividend Yield of 1.11%.
- Compared to an average industry Dividend Yield of 2.93, NRG's dividend is way lower than its industry peers. On top of this 82.61% of the companies listed in the same industry pay a better dividend than NRG!
- With a Dividend Yield of 1.11, NRG pays less dividend than the S&P500 average, which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
- 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 2Y0.63%
EPS Next 3Y5.41%
150.68
+1.77 (+1.19%)
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-0.02%
Ins Owners0.59%
Ins Owner Change-0.59%
Market Cap28.88B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts77.89
Price Target193.91 (28.69%)
Short Float %2.07%
Short Ratio2.01
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 | 17.46 | ||
| Fwd PE | 16.35 | ||
| P/S | 0.97 | ||
| P/FCF | 16.92 | ||
| P/OCF | 10.53 | ||
| P/B | 14.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.55 |
EPS(TTM)8.63
EY5.73%
EPS(NY)9.21
Fwd EY6.12%
FCF(TTM)8.91
FCFY5.91%
OCF(TTM)14.31
OCFY9.5%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.79
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 | 2.49 |
F-Score7
WACC7.74%
ROIC/WACC1.49
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%.