| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 1/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
NRG Overview
NRG Energy, Inc., together with its subsidiaries, operates as an integrated power company in the United States.
NRG Energy Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$42.96 |
| 52 Week High | US$29.43 |
| 52 Week Low | US$46.10 |
| Beta | 0.85 |
| 1 Month Change | -4.68% |
| 3 Month Change | 5.19% |
| 1 Year Change | 45.53% |
| 3 Year Change | 14.87% |
| 5 Year Change | 283.23% |
| Change since IPO | 346.34% |
Recent News & Updates
Shareholder Returns
| NRG | US Electric Utilities | US Market | |
|---|---|---|---|
| 7D | 2.1% | -1.3% | 0.1% |
| 1Y | 45.5% | 13.3% | 35.3% |
Return vs Industry: NRG exceeded the US Electric Utilities industry which returned 13.3% over the past year.
Return vs Market: NRG exceeded the US Market which returned 35.3% over the past year.
Price Volatility
| NRG volatility | |
|---|---|
| NRG Beta | 0.85 |
| Industry Beta | 0.43 |
| Market Beta | 1 |
Stable Share Price: NRG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NRG's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 4,104 | Mauricio Gutierrez | https://www.nrg.com |
NRG Energy, Inc., together with its subsidiaries, operates as an integrated power company in the United States. It operates through Texas, East, and West. The company is involved in the producing, selling, and delivering electricity and related products and services to 3.6 million residential, industrial, and commercial consumers.
NRG Energy Fundamentals Summary
| NRG fundamental statistics | |
|---|---|
| Market Cap | US$10.52b |
| Earnings (TTM) | US$1.07b |
| Revenue (TTM) | US$18.17b |
9.8x
P/E Ratio0.6x
P/S RatioIs NRG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NRG income statement (TTM) | |
|---|---|
| Revenue | US$18.17b |
| Cost of Revenue | US$13.47b |
| Gross Profit | US$4.70b |
| Expenses | US$3.63b |
| Earnings | US$1.07b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.38 |
| Gross Margin | 25.87% |
| Net Profit Margin | 5.90% |
| Debt/Equity Ratio | 345.0% |
How did NRG perform over the long term?
See historical performance and comparisonDividends
3.0%
Current Dividend Yield29%
Payout RatioValuation
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 ($42.96) is trading below our estimate of fair value ($252.14)
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 (9.8x) compared to the US Electric Utilities industry average (21.5x).
PE vs Market: NRG is good value based on its PE Ratio (9.8x) compared to the US market (17.9x).
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 (4.1x) compared to the US Electric Utilities industry average (1.9x).
Future Growth
How is NRG Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-1.7%
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 (-1.7% per year).
Earnings vs Market: NRG's earnings are forecast to decline over the next 3 years (-1.7% per year).
High Growth Earnings: NRG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NRG's revenue is expected to decline over the next 3 years (-3.7% per year).
High Growth Revenue: NRG's revenue is forecast to decline over the next 3 years (-3.7% 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 (42.8%).
Past Performance
How has NRG Energy performed over the past 5 years?
72.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NRG has a large one-off loss of $457.0M impacting its June 30 2021 financial results.
Growing Profit Margin: NRG's current net profit margins (5.9%) are lower than last year (45.2%).
Past Earnings Growth Analysis
Earnings Trend: NRG has become profitable over the past 5 years, growing earnings by 72.2% per year.
Accelerating Growth: NRG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NRG had negative earnings growth (-74.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.6%).
Return on Equity
High ROE: Whilst NRG's Return on Equity (42.14%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is NRG Energy's financial position?
Financial Position Analysis
Short Term Liabilities: NRG's short term assets ($8.6B) exceed its short term liabilities ($6.9B).
Long Term Liabilities: NRG's short term assets ($8.6B) do not cover its long term liabilities ($12.1B).
Debt to Equity History and Analysis
Debt Level: NRG's debt to equity ratio (345%) is considered high.
Reducing Debt: NRG's debt to equity ratio has reduced from 374.8% to 345% over the past 5 years.
Debt Coverage: NRG's debt is not well covered by operating cash flow (17.3%).
Interest Coverage: NRG's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
Dividend
What is NRG Energy current dividend yield, its reliability and sustainability?
3.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NRG's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: NRG's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.1%), NRG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NRG's dividends in 3 years are forecast to be well covered by earnings (32.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Mauricio Gutierrez (50 yo)
5.75yrs
Tenure
US$9,879,276
Compensation
Mr. Mauricio Gutierrez has been an Independent Director at Chipotle Mexican Grill, Inc. since March 30, 2021. He serves as Interim Chief Executive Officer and Interim President at Clearway Energy LLC (form...
CEO Compensation Analysis
Compensation vs Market: Mauricio's total compensation ($USD9.88M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Mauricio's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NRG's management team is seasoned and experienced (5.6 years average tenure).
Board Members
Experienced Board: NRG's board of directors are considered experienced (4.6 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 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$10.516b
- Shares outstanding: 244.78m
- Website: https://www.nrg.com
Number of Employees
Location
- NRG Energy, Inc.
- 910 Louisiana Street
- Houston
- Texas
- 77002
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/26 22:15 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.