Loading...

NRG Energy

NYSE:NRG
Snowflake Description

Fair value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NRG
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States. The last earnings update was 76 days ago. More info.


Add to Portfolio Compare Print
NRG Share Price and Events
7 Day Returns
-3.2%
NYSE:NRG
-0.4%
US Renewable Energy
0.6%
US Market
1 Year Returns
7.2%
NYSE:NRG
12%
US Renewable Energy
4.1%
US Market
NRG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NRG Energy (NRG) -3.2% 1% -15.1% 7.2% 137.2% 10.2%
US Renewable Energy -0.4% -0.1% -2.8% 12% 21.9% -18%
US Market 0.6% 3.8% 2.8% 4.1% 37.3% 42.5%
1 Year Return vs Industry and Market
  • NRG underperformed the Renewable Energy industry which returned 12% over the past year.
  • NRG outperformed the Market in United States of America which returned 4.1% over the past year.
Price Volatility
NRG
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NRG Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NRG Energy.

NYSE:NRG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NRG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Renewable Energy Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.47 (1 + (1- 21%) (76.3%))
0.834
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.834 * 5.96%)
7.7%

Discounted Cash Flow Calculation for NYSE:NRG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NRG Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:NRG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.7%)
2020 1,369.50 Analyst x2 1,271.55
2021 1,307.00 Analyst x2 1,126.72
2022 1,274.95 Est @ -2.45% 1,020.48
2023 1,263.50 Est @ -0.9% 938.98
2024 1,265.91 Est @ 0.19% 873.49
2025 1,277.97 Est @ 0.95% 818.73
2026 1,296.96 Est @ 1.49% 771.47
2027 1,321.07 Est @ 1.86% 729.61
2028 1,349.08 Est @ 2.12% 691.78
2029 1,380.15 Est @ 2.3% 657.10
Present value of next 10 years cash flows $8,899.91
NYSE:NRG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,380.15 × (1 + 2.73%) ÷ (7.7% – 2.73%)
$28,508.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $28,508.04 ÷ (1 + 7.7%)10
$13,572.88
NYSE:NRG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,899.91 + $13,572.88
$22,472.79
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $22,472.79 / 267.15
$84.12
NYSE:NRG Discount to Share Price
Calculation Result
Value per share (USD) From above. $84.12
Current discount Discount to share price of $34.80
= -1 x ($34.80 - $84.12) / $84.12
58.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NRG Energy is available for.
Intrinsic value
>50%
Share price is $34.8 vs Future cash flow value of $84.12
Current Discount Checks
For NRG Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NRG Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NRG Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NRG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.92
NYSE:NRG Share Price ** NYSE (2019-07-17) in USD $34.8
United States of America Renewable Energy Industry PE Ratio Median Figure of 7 Publicly-Listed Renewable Energy Companies 60.58x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NRG Energy.

NYSE:NRG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NRG Share Price ÷ EPS (both in USD)

= 34.8 ÷ 0.92

37.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does NRG Energy's expected growth come at a high price?
Raw Data
NYSE:NRG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
9.2%per year
United States of America Renewable Energy Industry PEG Ratio Median Figure of 6 Publicly-Listed Renewable Energy Companies 2.16x
United States of America Market PEG Ratio Median Figure of 2,122 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:NRG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.89x ÷ 9.2%

4.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NRG Energy is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NRG Energy's assets?
Raw Data
NYSE:NRG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $-5.75
NYSE:NRG Share Price * NYSE (2019-07-17) in USD $34.8
United States of America Renewable Energy Industry PB Ratio Median Figure of 13 Publicly-Listed Renewable Energy Companies 1.48x
United States of America Market PB Ratio Median Figure of 5,241 Publicly-Listed Companies 1.81x
NYSE:NRG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NRG Share Price ÷ Book Value per Share (both in USD)

= 34.8 ÷ -5.75

-6.05x

* Primary Listing of NRG Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NRG Energy has negative assets, we can't compare the value of its assets to the US Renewable Energy industry average.
X
Value checks
We assess NRG Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Renewable Energy industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Renewable Energy industry average (and greater than 0)? (1 check)
  5. NRG Energy has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NRG Energy expected to grow at an attractive rate?
  • NRG Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NRG Energy's earnings growth is positive but not above the United States of America market average.
  • NRG Energy's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NRG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NRG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 9.2%
NYSE:NRG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 0.8%
United States of America Renewable Energy Industry Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Renewable Energy Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NRG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NRG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 10,421 1,413 862 4
2020-12-31 10,754 1,368 969 6
2019-12-31 10,587 1,524 975 6
NYSE:NRG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 9,578 900 270
2018-12-31 9,478 1,377 460
2018-09-30 11,178 1,733 -943
2018-06-30 10,857 1,837 -1,032
2018-03-31 8,757 2,027 -748
2017-12-31 9,074 1,610 -1,161
2017-09-30 9,430 1,083 -644
2017-06-30 10,111 1,351 -700
2017-03-31 10,235 1,467 -895
2016-12-31 8,915 1,908 -766
2016-09-30 11,339 1,658 -6,289
2016-06-30 12,352 1,662 -6,365

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NRG Energy's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • NRG Energy's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NRG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from NRG Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NRG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 3.91 3.91 3.91 1.00
2020-12-31 3.94 5.54 3.06 3.00
2019-12-31 3.73 4.18 3.27 2.00
NYSE:NRG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.92
2018-12-31 1.51
2018-09-30 -3.03
2018-06-30 -3.27
2018-03-31 -2.36
2017-12-31 -3.66
2017-09-30 -2.03
2017-06-30 -2.21
2017-03-31 -2.83
2016-12-31 -2.42
2016-09-30 -19.98
2016-06-30 -19.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NRG Energy is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess NRG Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NRG Energy has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NRG Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NRG Energy's growth in the last year to its industry (Renewable Energy).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
NRG Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NRG Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NRG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 9,578.00 270.00 817.00 8.00
2018-12-31 9,478.00 460.00 799.00 11.00
2018-09-30 11,178.00 -943.00 864.00 58.00
2018-06-30 10,857.00 -1,032.00 842.00 63.00
2018-03-31 8,757.00 -748.00 752.00 10.00
2017-12-31 9,074.00 -1,161.00 836.00 22.00
2017-09-30 9,430.00 -644.00 928.00 42.00
2017-06-30 10,111.00 -700.00 1,019.00 57.00
2017-03-31 10,235.00 -895.00 1,101.00 80.00
2016-12-31 8,915.00 -766.00 1,032.00 48.00
2016-09-30 11,339.00 -6,289.00 1,122.00 102.00
2016-06-30 12,352.00 -6,365.00 1,168.00 119.00
2016-03-31 13,504.00 -6,304.00 1,188.00 138.00
2015-12-31 12,328.00 -6,297.00 1,228.00 154.00
2015-09-30 15,855.00 -13.00 1,168.00 138.00
2015-06-30 15,990.00 92.00 1,099.00 122.00
2015-03-31 16,211.00 11.00 1,070.00 106.00
2014-12-31 15,868.00 78.00 1,016.00 88.00
2014-09-30 14,471.00 -291.00 971.00 83.00
2014-06-30 13,392.00 -340.00 926.00 85.00
2014-03-31 12,700.00 -119.00 899.00 85.00
2013-12-31 11,295.00 -395.00 895.00 84.00
2013-09-30 10,563.00 154.00 898.00 79.00
2013-06-30 9,404.00 34.00 861.00 79.00
2013-03-31 8,641.00 161.00 794.00 73.00
2012-12-31 8,422.00 286.00 807.00 68.00
2012-09-30 8,491.00 -75.00 768.00 65.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • NRG Energy used its assets more efficiently than the US Renewable Energy industry average last year based on Return on Assets.
  • NRG Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NRG Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Renewable Energy industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NRG Energy has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NRG Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NRG Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of NRG Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NRG Energy Company Filings, last reported 3 months ago.

NYSE:NRG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 -1,520.00 6,489.00 874.00
2018-12-31 -1,215.00 6,520.00 580.00
2018-09-30 -917.00 7,253.00 1,376.00
2018-06-30 2,140.00 15,796.00 999.00
2018-03-31 2,338.00 16,392.00 779.00
2017-12-31 2,046.00 9,390.00 778.00
2017-09-30 3,775.00 16,983.00 1,228.00
2017-06-30 3,534.00 16,979.00 756.00
2017-03-31 4,057.00 19,437.00 1,516.00
2016-12-31 4,492.00 16,561.00 938.00
2016-09-30 5,512.00 19,402.00 2,435.00
2016-06-30 5,144.00 19,308.00 1,389.00
2016-03-31 5,708.00 19,327.00 1,659.00
2015-12-31 5,765.00 19,592.00 1,518.00
2015-09-30 12,167.00 20,220.00 2,265.00
2015-06-30 12,346.00 20,422.00 2,146.00
2015-03-31 11,689.00 20,710.00 2,164.00
2014-12-31 11,986.00 20,335.00 2,116.00
2014-09-30 11,967.00 20,905.00 1,953.00
2014-06-30 11,226.00 19,139.00 1,481.00
2014-03-31 10,643.00 17,558.00 3,187.00
2013-12-31 10,718.00 16,886.00 2,254.00
2013-09-30 11,130.00 16,795.00 2,129.00
2013-06-30 10,552.00 16,709.00 1,368.00
2013-03-31 10,445.00 16,597.00 1,707.00
2012-12-31 10,518.00 16,026.00 2,087.00
2012-09-30 8,139.00 11,476.00 1,610.00
  • 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 not well covered by operating cash flow (13.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess NRG Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NRG Energy has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.34%
Current annual income from NRG Energy dividends. Estimated to be 0.35% next year.
If you bought $2,000 of NRG Energy shares you are expected to receive $7 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NRG Energy's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • NRG Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NRG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Renewable Energy Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NRG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.12 5.00
2020-12-31 0.12 7.00
2019-12-31 0.12 7.00
NYSE:NRG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-08 0.120 0.326
2019-01-23 0.120 0.287
2018-10-17 0.120 0.309
2018-07-18 0.120 0.347
2018-04-19 0.120 0.370
2018-01-19 0.120 0.428
2017-10-18 0.120 0.434
2017-07-20 0.120 0.484
2017-04-07 0.120 0.705
2017-01-18 0.120 0.697
2016-10-19 0.120 1.009
2016-07-13 0.120 0.970
2016-05-05 0.120 0.782
2016-02-29 0.120 0.900
2016-01-19 0.580 5.603
2015-10-12 0.580 4.900
2015-07-15 0.580 3.120
2015-04-20 0.580 2.363
2015-01-20 0.580 2.333
2014-10-14 0.560 1.951
2014-07-18 0.560 1.837
2014-04-21 0.560 1.609
2014-02-28 0.560 1.820
2014-01-22 0.480 1.719
2013-10-16 0.480 1.711
2013-07-19 0.480 1.779
2013-04-19 0.480 1.772
2013-02-27 0.480 1.858
2013-01-22 0.360 1.503
2012-10-15 0.360 1.641
2012-07-23 0.360 1.694

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of NRG Energy's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess NRG Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NRG Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NRG Energy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mauricio Gutierrez
COMPENSATION $8,914,948
AGE 48
TENURE AS CEO 3.6 years
CEO Bio

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 the Chief Executive Officer and President of NRG Energy, Inc. since December 2015. He serves as CEO, President and Director of NRG Energy, Inc. of Texas Genco Holdings, Inc. and NRG South Central Generating LLC. He is responsible for Commercial Operations, Plant Operations, Environmental and Development Engineering and Construction at NRG Energy, Inc. He served as Chief Operating Officer and Executive Vice President at NRG Energy, Inc. since July 01, 2010 until December 2015. Mr. Gutierrez served as Interim Chief Executive Officer and Interim President of NRG Yield, Inc. from December 4, 2015 to May 5, 2016. He served as Chief Operating Officer of NRG Yield, Inc. from December 2012 to December 2015. He served as Executive Vice President of NRG Yield, Inc. since December 2012. Mr. Gutierrez served as the Chief Operating Officer of GenOn Energy, Inc. until December 2012. He served as Senior Vice President of Commercial Operations at NRG Energy, Inc. from March 2008 to January 2009 and also as its Executive Vice President of Commercial Operations from January 2009 to July 1, 2010. In this capacity, Mr. Gutierrez was responsible for the commercial management of the North America asset portfolio as well as the real time operations, origination and structuring. In this capacity, he was responsible for the optimization of NRG's asset portfolio and fuel requirements. He served as Vice President of Commercial Operations Trading at NRG Energy. Prior to joining NRG in August 2004, he held various positions with Dynegy Inc. including Managing Director, Trading for the Southeast and Texas regions and Senior Trader east power and Asset Manager. Mr. Gutierrez served as senior consultant and project manager at DTP involved in various energy and infrastructure projects in Mexico. Mr. Gutierrez was the Chairman of the Board of NRG Yield, Inc. since May 2016 until August 31, 2018. Mr. Gutierrez has been a Director at NRG Yield, Inc. since December 2012 and Director of NRG Energy, Inc. since January 04, 2016. He serves as Director at GenOn Energy, Inc.

CEO Compensation
  • Mauricio's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mauricio's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NRG Energy management team in years:

3.5
Average Tenure
48
Average Age
  • The tenure for the NRG Energy management team is about average.
Management Team

Mauricio Gutierrez

TITLE
President
COMPENSATION
$9M
AGE
48
TENURE
3.6 yrs

Kirk Andrews

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
51
TENURE
7.8 yrs

Chris Moser

TITLE
Executive Vice President of Operations
COMPENSATION
$2M
AGE
48
TENURE
1.5 yrs

Elizabeth Killinger

TITLE
Executive VP & President of Retail and Reliant
COMPENSATION
$2M
AGE
49
TENURE
3.4 yrs

Rob Gaudette

TITLE
Senior Vice President of Business Solutions
COMPENSATION
$1M
AGE
46
TENURE
5.6 yrs

Barry Smitherman

TITLE
Consultant
COMPENSATION
$145K
AGE
61
TENURE
1.3 yrs

David Callen

TITLE
Senior VP & Chief Accounting Officer
AGE
47
TENURE
4.3 yrs

Jennifer Wallace

TITLE
Senior Vice President of Administration
TENURE
3.3 yrs

Kevin Cole

TITLE
Sr. Vice President
TENURE
3.5 yrs

Brian Curci

TITLE
Senior VP & General Counsel
AGE
41
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the NRG Energy board of directors in years:

6.6
Average Tenure
63
Average Age
  • The tenure for the NRG Energy board of directors is about average.
Board of Directors

Larry Coben

TITLE
Chairman of the Board
COMPENSATION
$472K
AGE
60
TENURE
2.4 yrs

Mauricio Gutierrez

TITLE
President
COMPENSATION
$9M
AGE
48
TENURE
3.5 yrs

Tom Weidemeyer

TITLE
Director
COMPENSATION
$287K
AGE
71
TENURE
15.6 yrs

Anne Schaumburg

TITLE
Director
COMPENSATION
$271K
AGE
69
TENURE
14.3 yrs

William Hobby

TITLE
Director
COMPENSATION
$287K
AGE
58
TENURE
13.3 yrs

E. Abraham

TITLE
Director
COMPENSATION
$295K
AGE
66
TENURE
6.6 yrs

William Hantke

TITLE
Director
COMPENSATION
$303K
AGE
71
TENURE
13.3 yrs

Terry Dallas

TITLE
Director
COMPENSATION
$292K
AGE
69
TENURE
6.6 yrs

Matt Carter

TITLE
Director
COMPENSATION
$417K
AGE
58
TENURE
1.3 yrs

Heather Cox

TITLE
Director
COMPENSATION
$417K
AGE
48
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Mar 19 Sell David Callen Individual 12. Mar 19 12. Mar 19 -34,411 $41.83 $-1,439,412
08. Jan 19 Sell Elizabeth Killinger Individual 04. Jan 19 04. Jan 19 -25,078 $38.50 $-965,503
15. Sep 18 Sell Elizabeth Killinger Individual 13. Sep 18 13. Sep 18 -24,600 $35.84 $-881,664
13. Sep 18 Sell Christopher Moser Individual 10. Sep 18 10. Sep 18 -43,975 $35.11 $-1,543,962
07. Aug 18 Sell David Callen Individual 06. Aug 18 06. Aug 18 -9,200 $33.23 $-305,570
X
Management checks
We assess NRG Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NRG Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Investors Who Bought NRG Energy (NYSE:NRG) Shares Three Years Ago Are Now Up 146%

It is important to consider the total shareholder return, as well as the share price return, for any given stock. … A Different Perspective We're pleased to report that NRG Energy shareholders have received a total shareholder return of 17% over one year. … Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity.

Simply Wall St -

Are NRG Energy, Inc.’s (NYSE:NRG) High Returns Really That Great?

Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' How Do You Calculate Return On Capital Employed? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for NRG Energy: 0.13 = US$993m ÷ (US$9.5b - US$1.9b) (Based on the trailing twelve months to March 2019.) So, NRG Energy has an ROCE of 13%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Here's What We Think About NRG Energy, Inc.'s (NYSE:NRG) CEO Pay

First, this article will compare CEO compensation with compensation at other large companies. … How Does Mauricio Gutierrez's Compensation Compare With Similar Sized Companies. … is worth US$12b, and total annual CEO compensation is US$8.9m.

Simply Wall St -

NRG Energy, Inc. (NYSE:NRG): What We Can Expect From This Growth Stock

After NRG Energy, Inc.'s (NYSE:NRG) earnings announcement on 31 December 2018, … it seems that analyst forecasts are substantially optimistic, … with earnings expected to more than double in the upcoming year,

Simply Wall St -

NRG Energy, Inc. (NYSE:NRG) Is Trading At A 33.42% Discount

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Why NRG Energy, Inc.’s (NYSE:NRG) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Have Insiders Been Selling NRG Energy Inc (NYSE:NRG) Shares?

So before you buy or sell NRG Energy Inc (NYSE:NRG), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … It's not ideal to see that insiders have sold at around the current price of US$39.83

Simply Wall St -

Calculating The Intrinsic Value Of NRG Energy Inc (NYSE:NRG)

How far off is NRG Energy Inc (NYSE:NRG) from its intrinsic value? … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What Do You Get For Owning NRG Energy Inc (NYSE:NRG)?

As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … Your return is tied to NRG’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in NRG Energy, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Breakeven On The Horizon For NRG Energy Inc (NYSE:NRG)

The US$9.77b market-cap company’s loss lessens since it announced a -US$1.36b bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$956.00m, as it approaches breakeven? … I’ve put together a brief outline of industry analyst expectations for NRG, its year of breakeven and its implied growth rate … Check out our latest analysis for NRG Energy

Simply Wall St -

Company Info

Description

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.

Details
Name: NRG Energy, Inc.
NRG
Exchange: NYSE
Founded: 1989
$9,296,727,745
267,147,349
Website: http://www.nrg.com
Address: NRG Energy, Inc.
804 Carnegie Center,
Princeton,
New Jersey, 08540,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NRG Common Stock New York Stock Exchange US USD 02. Dec 2003
DB NRA Common Stock Deutsche Boerse AG DE EUR 02. Dec 2003
LSE 0K4C Common Stock London Stock Exchange GB USD 02. Dec 2003
Number of employees
Current staff
Staff numbers
4,862
NRG Energy employees.
Industry
Independent Power Producers and Energy Traders
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 23:59
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.