NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - NYSE:NRG - US6293775085 - Common Stock
164.22 USD
-1.86 (-1.12%)
164.22 USD
0 (0%)
NRG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. The financial health of NRG is average, but there are quite some concerns on its profitability. NRG is valied quite expensively at the moment, while it does show a decent 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.
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
Looking at the Return On Assets, with a value of 1.89%, NRG is doing worse than 85.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.89%, NRG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
NRG's Return On Invested Capital of 5.90% is fine compared to the rest of the industry. NRG outperforms 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROIC | 5.9% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NRG's Profit Margin of 1.55% is on the low side compared to the rest of the industry. NRG is outperformed by 91.67% of its industry peers.
In the last couple of years the Profit Margin of NRG has declined.
NRG's Operating Margin of 3.96% is on the low side compared to the rest of the industry. NRG is outperformed by 89.58% 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 17.25%, NRG is doing worse than 77.08% 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 | 3.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 17.25% |
OM growth 3Y-16.28%
OM growth 5Y-9.48%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-3.84%
GM growth 5Y-3.52%
2. Health
2.1 Basic Checks
NRG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NRG has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.35 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.35, NRG belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
NRG has a debt to FCF ratio of 7.85. This is a slightly negative value and a sign of low solvency as NRG would need 7.85 years to pay back of all of its debts.
NRG's Debt to FCF ratio of 7.85 is amongst the best of the industry. NRG outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 4.29 is on the high side and indicates that NRG has dependencies on debt financing.
The Debt to Equity ratio of NRG (4.29) is worse than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.77
WACC7.63%
2.3 Liquidity
A Current Ratio of 0.93 indicates that NRG may have some problems paying its short term obligations.
With a Current ratio value of 0.93, NRG perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
NRG has a Quick Ratio of 0.93. 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 better Quick ratio (0.88) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
NRG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.60%.
The Earnings Per Share has been growing by 22.12% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.82% in the past 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)-14.6%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%-50.15%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
3.2 Future
Based on estimates for the next years, NRG will show a small growth in Earnings Per Share. The EPS will grow by 7.32% on average per year.
The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y-13.62%
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
EPS Next 5Y7.32%
Revenue Next Year-2.29%
Revenue Next 2Y3.62%
Revenue Next 3Y3.44%
Revenue Next 5Y3.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 21.11, the valuation of NRG can be described as rather expensive.
NRG's Price/Earnings ratio is a bit more expensive when compared to the industry. NRG is more expensive than 72.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, NRG is valued a bit cheaper.
NRG is valuated rather expensively with a Price/Forward Earnings ratio of 18.78.
70.83% of the companies in the same industry are cheaper than NRG, based on the Price/Forward Earnings ratio.
NRG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
83.33% 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 somewhat cheap valuation: NRG is cheaper than 77.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.79 | ||
| EV/EBITDA | 19.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.11%.
Compared to an average industry Dividend Yield of 3.47, NRG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, NRG's dividend is way lower than the S&P500 average.
| 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
NRG pays out 89.67% of its income as dividend. This is not a sustainable payout ratio.
NRG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.67%
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
164.22
-1.86 (-1.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change-4.7%
Ins Owners0.59%
Ins Owner Change-0.68%
Market Cap31.77B
Analysts77.33
Price Target177.79 (8.26%)
Short Float %2.63%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.99
Dividend Growth(5Y)75.36%
DP89.67%
Div Incr Years5
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.2%
Min EPS beat(2)6.61%
Max EPS beat(2)77.8%
EPS beat(4)3
Avg EPS beat(4)23.74%
Min EPS beat(4)-5.85%
Max EPS beat(4)77.8%
EPS beat(8)5
Avg EPS beat(8)44.55%
EPS beat(12)5
Avg EPS beat(12)-54.39%
EPS beat(16)8
Avg EPS beat(16)-39.4%
Revenue beat(2)2
Avg Revenue beat(2)4.33%
Min Revenue beat(2)0.06%
Max Revenue beat(2)8.6%
Revenue beat(4)2
Avg Revenue beat(4)-6.53%
Min Revenue beat(4)-23.77%
Max Revenue beat(4)8.6%
Revenue beat(8)3
Avg Revenue beat(8)-9.18%
Revenue beat(12)6
Avg Revenue beat(12)15.11%
Revenue beat(16)10
Avg Revenue beat(16)25.86%
PT rev (1m)1.69%
PT rev (3m)8.92%
EPS NQ rev (1m)-10.83%
EPS NQ rev (3m)-8.85%
EPS NY rev (1m)1.62%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.58%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 18.78 | ||
| P/S | 1.08 | ||
| P/FCF | 22.79 | ||
| P/OCF | 13.88 | ||
| P/B | 13.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.42 |
EPS(TTM)7.78
EY4.74%
EPS(NY)8.75
Fwd EY5.33%
FCF(TTM)7.21
FCFY4.39%
OCF(TTM)11.83
OCFY7.21%
SpS151.82
BVpS11.83
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROCE | 7.6% | ||
| ROIC | 5.9% | ||
| ROICexc | 5.97% | ||
| ROICexgc | 11.89% | ||
| OM | 3.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 17.25% | ||
| FCFM | 4.75% |
ROA(3y)2.54%
ROA(5y)4.09%
ROE(3y)21.93%
ROE(5y)31.38%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y1.18%
ROICexcg growth 5Y18.42%
ROICexc growth 3Y-13.6%
ROICexc growth 5Y3.73%
OM growth 3Y-16.28%
OM growth 5Y-9.48%
PM growth 3Y-22.57%
PM growth 5Y-39.18%
GM growth 3Y-3.84%
GM growth 5Y-3.52%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Debt/EBITDA | 4.44 | ||
| Cap/Depr | 85.65% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.67% | ||
| Profit Quality | 306.37% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.35 |
F-Score5
WACC7.63%
ROIC/WACC0.77
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)-14.6%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%-50.15%
EPS Next Y-13.62%
EPS Next 2Y-1.96%
EPS Next 3Y4.65%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%1.22%
Revenue Next Year-2.29%
Revenue Next 2Y3.62%
Revenue Next 3Y3.44%
Revenue Next 5Y3.62%
EBIT growth 1Y-51.24%
EBIT growth 3Y-15.12%
EBIT growth 5Y11.72%
EBIT Next Year76.06%
EBIT Next 3Y31.93%
EBIT Next 5Y18.72%
FCF growth 1Y131.7%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y159.35%
OCF growth 3Y67.24%
OCF growth 5Y11.07%