NRG Energy
Market Cap
US$10.1b
Last Updated
2020/02/19 00:22 UTC
Data Sources
Company Financials +
Executive Summary
NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Fair value second-rate dividend payer.
Similar Companies
Share Price & News
How has NRG Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NRG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.8%
NRG
1.9%
US Renewable Energy
0.06%
US Market
1 Year Return
-5.0%
NRG
21.1%
US Renewable Energy
19.4%
US Market
Return vs Industry: NRG underperformed the US Renewable Energy industry which returned 21.1% over the past year.
Return vs Market: NRG underperformed the US Market which returned 19.4% over the past year.
Shareholder returns
| NRG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 1.9% | 0.06% |
| 30 Day | 3.7% | 6.6% | 1.1% |
| 90 Day | 1.9% | 8.6% | 8.9% |
| 1 Year | -4.0%-5.0% | 25.0%21.1% | 21.9%19.4% |
| 3 Year | 142.0%137.4% | 68.6%51.2% | 48.9%39.3% |
| 5 Year | 68.2%57.4% | 45.4%11.7% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is NRG Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
NRG Energy, Inc. (NYSE:NRG) Is Employing Capital Very Effectively1 month ago | Simply Wall St
The NRG Energy (NYSE:NRG) Share Price Has Gained 186%, So Why Not Pay It Some Attention?2 months ago | Simply Wall St
Are NRG Energy's (NYSE:NRG) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
Is NRG Energy undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NRG ($39.95) is trading below our estimate of fair value ($122.08)
Significantly Below Fair Value: NRG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NRG is good value based on its PE Ratio (19.2x) compared to the Renewable Energy industry average (27.4x).
PE vs Market: NRG is poor value based on its PE Ratio (19.2x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: NRG is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: NRG has negative assets, so we can't compare its PB Ratio to the US Renewable Energy industry average.
Next Steps
Future Growth
How is NRG Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
5.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NRG's forecast earnings growth (5% per year) is above the savings rate (1.7%).
Earnings vs Market: NRG's earnings (5% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: NRG's earnings are forecast to grow, but not significantly.
Revenue vs Market: NRG's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: NRG's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NRG's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has NRG Energy performed over the past 5 years?
28.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NRG has a large one-off loss of $220.0M impacting its September 30 2019 financial results.
Growing Profit Margin: NRG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NRG has become profitable over the past 5 years, growing earnings by 28.3% per year.
Accelerating Growth: NRG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NRG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-31.7%).
Return on Equity
High ROE: NRG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NRG Energy's financial position?
Financial Position Analysis
Short Term Liabilities: NRG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: NRG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: NRG has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: NRG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Inventory Level: NRG has a high level of physical assets or inventory.
Debt Coverage by Assets: NRG has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NRG is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: NRG is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is NRG Energy's current dividend yield, its reliability and sustainability?
3.00%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NRG's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: NRG's dividend (3%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NRG has been paying a dividend for less than 10 years.
Growing Dividend: NRG's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (5.8%), NRG's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NRG's dividends in 3 years are forecast to be well covered by earnings (30.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Mauricio Gutierrez (48yo)
4.2yrs
Tenure
US$8,914,948
Compensation
Mr. Mauricio Gutierrez serves as Interim Chief Executive Officer and Interim President at NRG Yield LLC. Mr. Gutierrez served as the Chief Executive Officer and President at GenOn Energy, Inc. He has been ...
CEO Compensation Analysis
Compensation vs Market: Mauricio's total compensation ($USD8.91M) is about average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Mauricio's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.2yrs | US$8.91m | 0.36% $36.0m | |
| Executive VP & CFO | 8.4yrs | US$3.00m | 0.10% $10.5m | |
| Executive Vice President of Operations | 2.1yrs | US$2.20m | 0.046% $4.6m | |
| Executive VP & President of Retail and Reliant | 4yrs | US$2.17m | 0.051% $5.2m | |
| Senior Vice President of Business Solutions | 6.2yrs | US$1.48m | 0.020% $2.0m | |
| Consultant | 1.9yrs | US$144.64k | no data | |
| Senior VP & Chief Accounting Officer | 4.9yrs | no data | 0.018% $1.8m | |
| Senior Vice President of Administration | 3.9yrs | no data | no data | |
| Sr. Vice President | 4.1yrs | no data | no data | |
| Senior VP & General Counsel | 1.9yrs | no data | 0.011% $1.1m |
4.0yrs
Average Tenure
48yo
Average Age
Experienced Management: NRG's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.2yrs | US$8.91m | 0.36% $36.0m | |
| Independent Director | 16.2yrs | US$287.01k | 0.0082% $827.5k | |
| Independent Director | 7.2yrs | US$292.32k | 0.0057% $572.5k | |
| Independent Director | 13.9yrs | US$287.01k | 0.028% $2.9m | |
| Chairman of the Board | 3yrs | US$472.49k | 0.00097% $97.8k | |
| Independent Director | 7.2yrs | US$295.32k | 0.0027% $268.1k | |
| Independent Director | 0.3yrs | no data | 0.000030% $3.0k | |
| Independent Director | 14.8yrs | US$270.89k | 0.0020% $199.6k | |
| Independent Director | 1.9yrs | US$416.56k | 0.0056% $566.4k | |
| Independent Director | 1.9yrs | US$416.56k | 0.0056% $563.4k |
5.6yrs
Average Tenure
59yo
Average Age
Experienced Board: NRG's board of directors are considered experienced (5.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NRG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NRG Energy, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NRG Energy, Inc.
- Ticker: NRG
- Exchange: NYSE
- Founded: 1989
- Industry: Independent Power Producers and Energy Traders
- Sector: Utilities
- Market Cap: US$10.079b
- Shares outstanding: 251.59m
- Website: https://www.nrg.com
Number of Employees
Location
- NRG Energy, Inc.
- 804 Carnegie Center
- Princeton
- New Jersey
- 8540
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NRG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2003 |
| NRA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2003 |
| NRA | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Dec 2003 |
| 0K4C | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 2003 |
| N1RG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States. The company is involved in the producing, selling, and delivering electricity and related products and services to 3.1 million residential, industrial, and commercial consumers. It generates electricity using natural gas, coal, oil, solar, nuclear, wind, fossil fuel, and nuclear sources. The company also provides system power, distributed generation, solar and wind products, backup generation, storage and distributed solar, demand response, energy efficiency, advisory, and on-site energy solutions; and carbon management and specialty services. In addition, it trades in electric power, natural gas, and related commodity and financial products, including forwards, futures, options, and swaps. Further, the company supplies fuels; provides transportation services; and directly sells energy, services, and products and services to retail customers under the NRG, Reliant, and other names. It develops, constructs, owns, and operates natural gas, coal, oil, solar, nuclear, wind, fossil fuel, and nuclear plants with generation capacity of 23,000 megawatts. The company was founded in 1989 and is headquartered in Princeton, New Jersey.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 00:22 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.