NRG ENERGY INC (NRG) Stock Fundamental Analysis
USA - NYSE:NRG - US6293775085 - Common Stock
165.19 USD
-0.96 (-0.58%)
165.52 USD
+0.33 (+0.2%)
Taking everything into account, NRG scores 5 out of 10 in our fundamental rating. NRG was compared to 48 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. NRG is quite expensive at the moment. It does show a decent growth rate. NRG also has an excellent dividend rating. These ratings would make NRG suitable for dividend investing!
1. Profitability
1.1 Basic Checks
NRG had positive earnings in the past year.
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
With an excellent Return On Assets value of 5.73%, NRG belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
NRG's Return On Equity of 69.75% is amongst the best of the industry. NRG outperforms 100.00% of its industry peers.
The Return On Invested Capital of NRG (7.65%) is better than 87.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NRG is significantly above the industry average of 5.02%.
| 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
Looking at the Profit Margin, with a value of 4.61%, NRG is doing worse than 85.11% of the companies in the same industry.
In the last couple of years the Profit Margin of NRG has declined.
With a Operating Margin value of 5.37%, NRG is not doing good in the industry: 89.36% of the companies in the same industry are doing better.
NRG's Operating Margin has declined in the last couple of years.
The Gross Margin of NRG (18.40%) is worse than 72.34% of its industry peers.
In the last couple of years the Gross Margin of NRG has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NRG is still creating some value.
Compared to 1 year ago, NRG has less shares outstanding
The number of shares outstanding for NRG has been reduced compared to 5 years ago.
The debt/assets ratio for NRG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.47 indicates that NRG is not a great score, but indicates only limited risk for bankruptcy at the moment.
NRG has a Altman-Z score of 2.47. This is amongst the best in the industry. NRG outperforms 91.49% 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.
With an excellent Debt to FCF ratio value of 6.99, NRG belongs to the best of the industry, outperforming 85.11% 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.
The Debt to Equity ratio of NRG (5.66) is worse than 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.99
WACC7.7%
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 70.21% 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.
The Quick ratio of NRG (0.99) is better than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for NRG have decreased strongly by -10.10% in the last year.
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.
The Revenue has been growing slightly by 5.91% in the past 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%5.7%
3.2 Future
Based on estimates for the next years, NRG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.49% on average per year.
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 19.14, NRG is valued on the expensive side.
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 (25.89), we can say NRG is valued slightly cheaper.
NRG is valuated rather expensively with a Price/Forward Earnings ratio of 18.00.
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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18 |
4.2 Price Multiples
NRG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NRG is more expensive than 78.72% of the companies in the same industry.
NRG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NRG is cheaper than 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 16.46 |
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
With a Yearly Dividend Yield of 9.37%, NRG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.64, NRG's dividend is way lower than its industry peers. On top of this 80.85% of the companies listed in the same industry pay a better dividend than NRG!
NRG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.37% |
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
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 2Y0.43%
EPS Next 3Y5.83%
165.19
-0.96 (-0.58%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-1.06%
Ins Owners0.61%
Ins Owner Change-0.71%
Market Cap31.95B
Revenue(TTM)29.78B
Net Income(TTM)1.37B
Analysts78.82
Price Target181.54 (9.9%)
Short Float %2.21%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.37% |
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)0.55%
Min Revenue beat(2)0.06%
Max Revenue beat(2)1.03%
Revenue beat(4)3
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-11%
Max Revenue beat(4)8.6%
Revenue beat(8)4
Avg Revenue beat(8)-5.53%
Revenue beat(12)6
Avg Revenue beat(12)14.63%
Revenue beat(16)10
Avg Revenue beat(16)22.89%
PT rev (1m)1.97%
PT rev (3m)3.83%
EPS NQ rev (1m)-9.89%
EPS NQ rev (3m)1.96%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18 | ||
| P/S | 1.07 | ||
| P/FCF | 18.72 | ||
| P/OCF | 11.65 | ||
| P/B | 16.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.46 |
EPS(TTM)8.63
EY5.22%
EPS(NY)9.18
Fwd EY5.56%
FCF(TTM)8.82
FCFY5.34%
OCF(TTM)14.18
OCFY8.58%
SpS153.95
BVpS10.18
TBVpS-28.31
PEG (NY)N/A
PEG (5Y)0.87
Graham Number44.47
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 | 2.47 |
F-Score7
WACC7.7%
ROIC/WACC0.99
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)5.91%
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 1Y101.77%
EBIT growth 3Y-17.79%
EBIT growth 5Y9.6%
EBIT Next Year77.53%
EBIT Next 3Y32.24%
EBIT Next 5Y22.21%
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 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 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 19.14 and the Price/Book (PB) ratio is 16.22.
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.