NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - NYSE:NRG - US6293775085 - Common Stock
172.5 USD
+2.4 (+1.41%)
172.896 USD
+0.4 (+0.23%)
Taking everything into account, NRG scores 4 out of 10 in our fundamental rating. NRG was compared to 47 industry peers in the Electric Utilities industry. Both the profitability and the financial health of NRG get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, NRG is valued expensive at the moment.
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.
Of the past 5 years NRG 4 years were profitable.
NRG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NRG's Return On Assets of 1.89% is on the low side compared to the rest of the industry. NRG is outperformed by 85.11% of its industry peers.
With an excellent Return On Equity value of 19.89%, NRG belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.92%, NRG is doing worse than 82.98% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NRG is significantly above the industry average of 4.90%.
The last Return On Invested Capital (2.92%) for NRG is well below the 3 year average (10.16%), which needs to be investigated, but indicates that NRG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROIC | 2.92% |
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
Looking at the Profit Margin, with a value of 1.55%, NRG is doing worse than 91.49% of the companies in the same industry.
NRG's Profit Margin has declined in the last couple of years.
NRG's Operating Margin of 1.96% is on the low side compared to the rest of the industry. NRG is outperformed by 91.49% of its industry peers.
NRG's Operating Margin has declined in the last couple of years.
NRG has a worse Gross Margin (15.25%) than 78.72% of its industry peers.
NRG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 15.25% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NRG is still 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 2.29. 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.
NRG has a Altman-Z score of 2.29. This is amongst the best in the industry. NRG outperforms 89.36% of its industry peers.
The Debt to FCF ratio of NRG is 7.85, which is on the high side as it means it would take NRG, 7.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.85, NRG belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
NRG has a Debt/Equity ratio of 4.29. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NRG (4.29) is worse than 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.38
WACC7.72%
2.3 Liquidity
NRG has a Current 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 Current ratio (0.93) which is in line with its industry peers.
A Quick Ratio of 0.88 indicates that NRG may have some problems paying its short term obligations.
NRG has a Quick ratio of 0.88. This is in the better half of the industry: NRG outperforms 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for NRG have decreased strongly by -10.10% in the last year.
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 decreased by -2.40% in the past year.
Measured over the past years, NRG shows a very strong growth in Revenue. The Revenue has been growing by 23.42% on average per year.
EPS 1Y (TTM)-10.1%
EPS 3Y-10.93%
EPS 5Y22.12%
EPS Q2Q%44.74%
Revenue 1Y (TTM)-2.4%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.7%
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 9.49% yearly.
The Revenue is expected to grow by 3.99% on average over the next years.
EPS Next Y-13.38%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
EPS Next 5Y9.49%
Revenue Next Year-2.2%
Revenue Next 2Y3.7%
Revenue Next 3Y3.49%
Revenue Next 5Y3.99%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 19.99, NRG is valued on the expensive side.
NRG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.83, NRG is valued a bit cheaper.
NRG is valuated rather expensively with a Price/Forward Earnings ratio of 18.79.
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 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
NRG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NRG is more expensive than 85.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NRG is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.94 | ||
| EV/EBITDA | 26.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y0.43%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
NRG has a Yearly Dividend Yield of 1.03%.
With a Dividend Yield of 1.03, NRG pays less dividend than the industry average, which is at 3.25. 80.85% of the companies listed in the same industry pay a better dividend than NRG!
With a Dividend Yield of 1.03, NRG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of NRG is nicely growing with an annual growth rate of 75.36%!
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)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.
The dividend of NRG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.67%
EPS Next 2Y0.43%
EPS Next 3Y5.83%
172.5
+2.4 (+1.41%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-0.77%
Ins Owners0.61%
Ins Owner Change-0.75%
Market Cap33.37B
Revenue(TTM)28.13B
Net Income(TTM)455.00M
Analysts78.82
Price Target181.54 (5.24%)
Short Float %2.21%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)2.11%
PT rev (3m)6.84%
EPS NQ rev (1m)5.9%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)0.27%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)-3.98%
Revenue NQ rev (3m)-9.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.79 | ||
| P/S | 1.14 | ||
| P/FCF | 23.94 | ||
| P/OCF | 14.58 | ||
| P/B | 14.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.95 |
EPS(TTM)8.63
EY5%
EPS(NY)9.18
Fwd EY5.32%
FCF(TTM)7.21
FCFY4.18%
OCF(TTM)11.83
OCFY6.86%
SpS151.82
BVpS11.83
TBVpS-27.08
PEG (NY)N/A
PEG (5Y)0.9
Graham Number47.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 19.89% | ||
| ROCE | 3.76% | ||
| ROIC | 2.92% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 5.88% | ||
| OM | 1.96% | ||
| PM (TTM) | 1.55% | ||
| GM | 15.25% | ||
| FCFM | 4.75% |
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-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.29 | ||
| Debt/FCF | 7.85 | ||
| Debt/EBITDA | 6.06 | ||
| Cap/Depr | 85.65% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.3% | ||
| Profit Quality | 306.37% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.29 |
F-Score5
WACC7.72%
ROIC/WACC0.38
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 5Y9.49%
Revenue 1Y (TTM)-2.4%
Revenue growth 3Y1.39%
Revenue growth 5Y23.42%
Sales Q2Q%5.7%
Revenue Next Year-2.2%
Revenue Next 2Y3.7%
Revenue Next 3Y3.49%
Revenue Next 5Y3.99%
EBIT growth 1Y-75.89%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year77.53%
EBIT Next 3Y32.24%
EBIT Next 5Y22.21%
FCF growth 1Y131.7%
FCF growth 3Y101.55%
FCF growth 5Y10.05%
OCF growth 1Y159.35%
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 4 / 10 to NRG.
What is the valuation status for NRG stock?
ChartMill assigns a valuation rating of 3 / 10 to NRG ENERGY INC (NRG). This can be considered as Overvalued.
Can you provide the profitability details for NRG ENERGY INC?
NRG ENERGY INC (NRG) has a profitability rating of 4 / 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 19.99 and the Price/Book (PB) ratio is 14.58.
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.