NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NRG - US6293775085 - Common Stock
165.66 USD
-3.83 (-2.26%)
165.66 USD
0 (0%)
Overall NRG gets a fundamental rating of 5 out of 10. We evaluated NRG against 48 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
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
Looking at the Return On Assets, with a value of 5.73%, NRG belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of NRG (69.75%) is better than 100.00% of its industry peers.
NRG has a Return On Invested Capital of 7.65%. This is amongst the best in the industry. NRG outperforms 87.50% of its industry peers.
NRG had an Average Return On Invested Capital over the past 3 years of 10.16%. This is significantly above the industry average of 4.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROIC | 7.65% |
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
The Profit Margin of NRG (4.61%) is worse than 85.42% of its industry peers.
NRG's Profit Margin has declined in the last couple of years.
NRG's Operating Margin of 5.37% is on the low side compared to the rest of the industry. NRG is outperformed by 89.58% of its industry peers.
NRG's Operating Margin has declined in the last couple of years.
The Gross Margin of NRG (18.40%) is worse than 72.92% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.37% | ||
| PM (TTM) | 4.61% | ||
| GM | 18.4% |
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.
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 2.49 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 2.49, NRG belongs to the best of the industry, outperforming 91.67% 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.
Looking at the Debt to FCF ratio, with a value of 6.99, NRG belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
A Debt/Equity ratio of 5.66 is on the high side and indicates that NRG has dependencies on debt financing.
With a Debt to Equity ratio value of 5.66, NRG is not doing good in the industry: 95.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.49 |
ROIC/WACC1
WACC7.61%
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 Current ratio of 1.05. This is in the better half of the industry: NRG outperforms 70.83% 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.
NRG has a better Quick ratio (0.99) than 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%.
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%.
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.
NRG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.44% yearly.
EPS Next Y-13.38%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
EPS Next 5Y9.67%
Revenue Next Year-2.2%
Revenue Next 2Y3.7%
Revenue Next 3Y3.49%
Revenue Next 5Y4.44%
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.
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
A Price/Earnings ratio of 19.20 indicates a rather expensive valuation of NRG.
Compared to the rest of the industry, the Price/Earnings ratio of NRG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NRG to the average of the S&P500 Index (26.31), we can say NRG is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.05, which indicates a rather expensive current valuation of NRG.
NRG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.56. NRG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
79.17% of the companies in the same industry are cheaper than NRG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NRG is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.6 | ||
| EV/EBITDA | 16.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y0.43%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.04%.
Compared to an average industry Dividend Yield of 3.33, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
NRG pays out 29.77% of its income as dividend. This is a 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 2Y0.43%
EPS Next 3Y5.83%
165.66
-3.83 (-2.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-4.06%
Ins Owners0.61%
Ins Owner Change0.23%
Market Cap31.75B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts78.82
Price Target190.35 (14.9%)
Short Float %2.39%
Short Ratio1.96
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)6.92%
PT rev (3m)7.55%
EPS NQ rev (1m)-21.27%
EPS NQ rev (3m)-31.18%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-2.49%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 18.05 | ||
| P/S | 1.07 | ||
| P/FCF | 18.6 | ||
| P/OCF | 11.58 | ||
| P/B | 16.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.67 |
EPS(TTM)8.63
EY5.21%
EPS(NY)9.18
Fwd EY5.54%
FCF(TTM)8.91
FCFY5.38%
OCF(TTM)14.31
OCFY8.64%
SpS155.39
BVpS10.28
TBVpS-28.57
PEG (NY)N/A
PEG (5Y)0.87
Graham Number44.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 69.75% | ||
| ROCE | 9.84% | ||
| ROIC | 7.65% | ||
| ROICexc | 8.01% | ||
| ROICexgc | 15.38% | ||
| OM | 5.37% | ||
| PM (TTM) | 4.61% | ||
| GM | 18.4% | ||
| 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 | 4.26 | ||
| Cap/Depr | 101.37% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.62% | ||
| Profit Quality | 124.24% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.49 |
F-Score7
WACC7.61%
ROIC/WACC1
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-13.38%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
EPS Next 5Y9.67%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.23%
Revenue Next Year-2.2%
Revenue Next 2Y3.7%
Revenue Next 3Y3.49%
Revenue Next 5Y4.44%
EBIT growth 1Y101.77%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year77.53%
EBIT Next 3Y32.24%
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 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 valuation of NRG ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NRG ENERGY INC (NRG) is 19.2 and the Price/Book (PB) ratio is 16.12.
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 -13.38% in the next year.