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NRG

NRG EnergyNYSE:NRG Stock Report

Market Cap

US$10.5b

7D

2.1%

1Y

45.5%

Updated

26 Sep, 2021

Data

Company Financials +
NRG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance1/6
Financial Health3/6
Dividends3/6

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

Summary of all time highs, changes and price drops for NRG Energy
Historical stock prices
Current Share PriceUS$42.96
52 Week HighUS$29.43
52 Week LowUS$46.10
Beta0.85
1 Month Change-4.68%
3 Month Change5.19%
1 Year Change45.53%
3 Year Change14.87%
5 Year Change283.23%
Change since IPO346.34%

Recent News & Updates

Shareholder Returns

NRGUS Electric UtilitiesUS Market
7D2.1%-1.3%0.1%
1Y45.5%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

Is NRG's price volatile compared to industry and market?
NRG volatility
NRG Beta0.85
Industry Beta0.43
Market Beta1

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

FoundedEmployeesCEOWebsite
19894,104Mauricio Gutierrezhttps://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

How do NRG Energy's earnings and revenue compare to its market cap?
NRG fundamental statistics
Market CapUS$10.52b
Earnings (TTM)US$1.07b
Revenue (TTM)US$18.17b

9.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NRG income statement (TTM)
RevenueUS$18.17b
Cost of RevenueUS$13.47b
Gross ProfitUS$4.70b
ExpensesUS$3.63b
EarningsUS$1.07b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.38
Gross Margin25.87%
Net Profit Margin5.90%
Debt/Equity Ratio345.0%

How did NRG perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

29%

Payout Ratio

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 ($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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:15
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.