NRG Energy
Market Cap
US$10.0b
Last Updated
2021/01/17 23:34 UTC
Data Sources
Company Financials +
Executive Summary
NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 15.8% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Good value with proven track record.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NRG's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
4.6%
NRG
0.7%
US Electric Utilities
-1.0%
US Market
1 Year Return
5.9%
NRG
-4.6%
US Electric Utilities
19.6%
US Market
Return vs Industry: NRG exceeded the US Electric Utilities industry which returned -4.6% over the past year.
Return vs Market: NRG underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| NRG | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.6% | 0.7% | -1.0% |
| 30 Day | 20.8% | 3.0% | 2.3% |
| 90 Day | 22.2% | 1.6% | 13.1% |
| 1 Year | 9.7%5.9% | -1.4%-4.6% | 22.3%19.6% |
| 3 Year | 58.3%51.7% | 27.9%17.1% | 45.3%35.7% |
| 5 Year | 340.9%311.1% | 49.4%27.9% | 124.8%99.8% |
Long-Term 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
We're Not Counting On NRG Energy (NYSE:NRG) To Sustain Its Statutory Profitability4 weeks ago | Simply Wall St
Have NRG Energy, Inc. (NYSE:NRG) Insiders Been Selling Their Stock?1 month ago | Simply Wall St
Does NRG Energy, Inc. (NYSE:NRG) Have A Place In Your Dividend Portfolio?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 ($40.82) is trading below our estimate of fair value ($141.49)
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 (2.4x) compared to the US Electric Utilities industry average (19.9x).
PE vs Market: NRG is good value based on its PE Ratio (2.4x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: NRG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NRG is overvalued based on its PB Ratio (5.2x) compared to the US Electric Utilities industry average (1.8x).
Next Steps
Future Growth
How is NRG Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-15.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NRG's earnings are forecast to decline over the next 3 years (-15.8% per year).
Earnings vs Market: NRG's earnings are forecast to decline over the next 3 years (-15.8% per year).
High Growth Earnings: NRG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NRG's revenue (3.2% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: NRG's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NRG's Return on Equity is forecast to be very high in 3 years time (42.1%).
Next Steps
Past Performance
How has NRG Energy performed over the past 5 years?
75.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NRG has a high level of non-cash earnings.
Growing Profit Margin: NRG's current net profit margins (44.7%) are higher than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: NRG has become profitable over the past 5 years, growing earnings by 75.8% per year.
Accelerating Growth: NRG's earnings growth over the past year (587.7%) exceeds its 5-year average (75.8% per year).
Earnings vs Industry: NRG earnings growth over the past year (587.7%) exceeded the Electric Utilities industry 6.1%.
Return on Equity
High ROE: Whilst NRG's Return on Equity (214.37%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is NRG Energy's financial position?
Financial Position Analysis
Short Term Liabilities: NRG's short term assets ($3.1B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: NRG's short term assets ($3.1B) do not cover its long term liabilities ($8.3B).
Debt to Equity History and Analysis
Debt Level: NRG's debt to equity ratio (299.6%) is considered high.
Reducing Debt: NRG's debt to equity ratio has increased from 168% to 299.6% over the past 5 years.
Debt Coverage: NRG's debt is well covered by operating cash flow (32.8%).
Interest Coverage: NRG's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
Next Steps
Dividend
What is NRG Energy current dividend yield, its reliability and sustainability?
2.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NRG's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: NRG's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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 (7.2%), 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 (20.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Mauricio Gutierrez (49 yo)
5.08yrs
Tenure
US$9,146,053
Compensation
Mr. Mauricio Gutierrez serves as Interim Chief Executive Officer and Interim President at Clearway Energy LLC (formerly known as NRG Yield LLC). Mr. Gutierrez served as the Chief Executive Officer and Pres...
CEO Compensation Analysis
Compensation vs Market: Mauricio's total compensation ($USD9.15M) is about average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Mauricio's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.08yrs | US$9.15m | 0.35% $ 35.3m | |
| Executive VP & CFO | 9.33yrs | US$3.02m | 0.12% $ 11.5m | |
| Executive Vice President of Operations | 3yrs | US$2.23m | 0.057% $ 5.7m | |
| Senior VP & General Counsel | 2.83yrs | US$1.47m | 0.015% $ 1.5m | |
| Executive VP & President of Retail and Reliant | 4.92yrs | US$2.21m | 0.050% $ 5.0m | |
| Senior VP & Chief Accounting Officer | 5.83yrs | no data | 0.017% $ 1.6m | |
| Senior Vice President of Administration | 4.83yrs | no data | no data | |
| Sr. Vice President | 5yrs | no data | no data | |
| Senior Vice President of Business Solutions | 7.08yrs | US$1.48m | 0.028% $ 2.8m | |
| Senior Vice President of Asset Management | 5.5yrs | no data | no data | |
| Senior Vice President of Data & Analytics | 0.42yr | no data | no data | |
| Senior VP & Treasurer | 5yrs | no data | no data |
5.0yrs
Average Tenure
49yo
Average Age
Experienced Management: NRG's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.08yrs | US$9.15m | 0.35% $ 35.3m | |
| Independent Director | 17.08yrs | US$287.01k | 0.0084% $ 842.4k | |
| Independent Director | 14.83yrs | US$287.01k | 0.031% $ 3.1m | |
| Independent Chairman of the Board | 3.92yrs | US$473.46k | 0.0010% $ 99.7k | |
| Independent Director | 8.08yrs | US$291.87k | 0.0027% $ 273.2k | |
| Independent Director | 1.25yrs | US$229.98k | 0.000030% $ 3.0k | |
| Independent Director | 15.75yrs | US$309.77k | 0.0043% $ 423.7k | |
| Independent Director | 0.25yr | no data | no data | |
| Independent Director | 2.83yrs | US$268.39k | no data | |
| Independent Director | 1.25yrs | US$229.98k | no data | |
| Independent Director | 2.83yrs | US$267.84k | 0.0037% $ 371.8k |
3.9yrs
Average Tenure
59yo
Average Age
Experienced Board: NRG's board of directors are considered experienced (3.9 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: Electric Utilities
- Sector: Utilities
- Market Cap: US$9.969b
- Shares outstanding: 244.22m
- 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. It operates through Generation and Retail segments. The company is involved in the producing, selling, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 23:34 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.