NYSE:NRG

Stock Analysis Report

Executive Summary

NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States.

Snowflake

Fundamentals

Fair value with acceptable 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


Market Performance


7 Day Return

4.5%

NYSE:NRG

1.5%

US Renewable Energy

2.1%

US Market


1 Year Return

7.2%

NYSE:NRG

10.9%

US Renewable Energy

-0.04%

US Market

NRG underperformed the Renewable Energy industry which returned 11.2% over the past year.

NRG outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

NRGIndustryMarket
7 Day4.5%1.5%2.1%
30 Day3.9%3.3%-3.2%
90 Day0.9%3.3%2.8%
1 Year7.6%7.2%14.6%10.9%2.2%-0.04%
3 Year194.7%190.3%43.7%23.4%41.5%32.3%
5 Year25.9%17.6%7.5%-16.7%55.0%37.8%

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

Valuation

Is NRG Energy undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NRG Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

NRG Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NRG Energy is good value based on earnings compared to the US Renewable Energy industry average.

NRG Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

NRG Energy is poor value based on expected growth next year.


Price Based on Value of Assets

NRG Energy has negative assets, we can't compare the value of its assets to the US Renewable Energy industry average.


Next Steps

Future Growth

How is NRG Energy expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NRG Energy's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

NRG Energy's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

NRG Energy's revenue growth is positive but not above the United States of America market average.

NRG Energy's earnings growth is positive but not above the United States of America market average.

NRG Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NRG Energy is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has NRG Energy performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NRG Energy's year on year earnings growth rate has been positive over the past 5 years.

NRG Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

NRG Energy has become profitable in the last year making it difficult to compare the North America Renewable Energy industry average.


Return on Equity

It is difficult to establish if NRG Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

NRG Energy used its assets more efficiently than the US Renewable Energy industry average last year based on Return on Assets.


Return on Capital Employed

NRG Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NRG Energy's financial position?


Financial Position Analysis

NRG Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NRG Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NRG Energy has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if NRG Energy's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (21.3%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

NRG Energy has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is NRG Energy's current dividend yield, its reliability and sustainability?

0.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

NRG Energy's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

NRG Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

NRG Energy is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

NRG Energy is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of NRG Energy's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of NRG Energy's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of NRG Energy's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Mauricio Gutierrez (48yo)

3.7yrs

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

Mauricio's remuneration is higher than average for companies of similar size in United States of America.

Mauricio's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

48yo

Average Age

The tenure for the NRG Energy management team is about average.


Board Age and Tenure

6.7yrs

Average Tenure

63yo

Average Age

The tenure for the NRG Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,439,41214 Mar 19
David Callen
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares34,411
Max PriceUS$41.83
SellUS$965,50308 Jan 19
Elizabeth Killinger
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Retail and Reliant
Shares25,078
Max PriceUS$38.50
SellUS$881,66415 Sep 18
Elizabeth Killinger
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Retail and Reliant
Shares24,600
Max PriceUS$35.84
SellUS$1,543,96213 Sep 18
Christopher Moser
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Operations
Shares43,975
Max PriceUS$35.11

Ownership Breakdown


Management Team

  • Mauricio Gutierrez (48yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$8.91m
  • Rob Gaudette (46yo)

    Senior Vice President of Business Solutions

    • Tenure: 5.7yrs
    • Compensation: US$1.48m
  • Barry Smitherman (61yo)

    Consultant

    • Tenure: 1.4yrs
    • Compensation: US$144.64k
  • Chris Moser (48yo)

    Executive Vice President of Operations

    • Tenure: 1.6yrs
    • Compensation: US$2.20m
  • Elizabeth Killinger (49yo)

    Executive VP & President of Retail and Reliant

    • Tenure: 3.5yrs
    • Compensation: US$2.17m
  • Jennifer Wallace

    Senior Vice President of Administration

    • Tenure: 3.4yrs
  • Kirk Andrews (51yo)

    Executive VP & CFO

    • Tenure: 7.9yrs
    • Compensation: US$3.00m
  • Brian Curci (41yo)

    Senior VP & General Counsel

    • Tenure: 1.4yrs
  • David Callen (47yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.4yrs
  • Kevin Cole

    Sr. Vice President

    • Tenure: 3.6yrs

Board Members

  • William Hantke (71yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: US$302.96k
  • Tom Weidemeyer (71yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$287.01k
  • Terry Dallas (69yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$292.32k
  • William Hobby (58yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: US$287.01k
  • Larry Coben (60yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: US$472.49k
  • E. Abraham (66yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$295.32k
  • Anne Schaumburg (69yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$270.89k
  • Matt Carter (58yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$416.56k
  • Mauricio Gutierrez (48yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$8.91m
  • Heather Cox (48yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$416.56k

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$9.070b
  • Shares outstanding: 252.99m
  • Website: https://www.nrg.com

Number of Employees


Location

  • NRG Energy, Inc.
  • 804 Carnegie Center
  • Princeton
  • New Jersey
  • 8540
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRGNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2003
NRADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003
0K4CLSE (London Stock Exchange)YesCommon StockGBUSDDec 2003

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:52
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.