NYSE:NRG

Stock Analysis Report

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Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

NRG

-2.2%

US Electric Utilities

-1.9%

US Market


1 Year Return

-27.5%

NRG

-11.0%

US Electric Utilities

13.1%

US Market

Return vs Industry: NRG underperformed the US Electric Utilities industry which returned -11.8% over the past year.

Return vs Market: NRG underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

NRGIndustryMarket
7 Day-6.7%-2.2%-1.9%
30 Day-16.9%-2.6%-2.9%
90 Day-11.6%3.5%8.2%
1 Year-25.5%-27.5%-8.1%-11.0%15.7%13.1%
3 Year19.8%15.8%1.1%-7.1%38.4%29.1%
5 Year108.6%94.2%35.7%16.1%89.3%68.0%

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 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 ($28.84) is trading below our estimate of fair value ($96.15)

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 (1.7x) compared to the US Electric Utilities industry average (17.7x).

PE vs Market: NRG is good value based on its PE Ratio (1.7x) compared to the US market (17.8x).


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 (4x) 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?

-22.8%

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 (-22.8% per year).

Earnings vs Market: NRG's earnings are forecast to decline over the next 3 years (-22.8% per year).

High Growth Earnings: NRG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NRG's revenue (2.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: NRG's revenue (2.7% 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 high in 3 years time (29.5%)


Next Steps

Past Performance

How has NRG Energy performed over the past 5 years?

68.3%

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 (45.2%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: NRG has become profitable over the past 5 years, growing earnings by 68.3% per year.

Accelerating Growth: NRG's earnings growth over the past year (835.8%) exceeds its 5-year average (68.3% per year).

Earnings vs Industry: NRG earnings growth over the past year (835.8%) exceeded the Electric Utilities industry 6.3%.


Return on Equity

High ROE: Whilst NRG's Return on Equity (244.06%) 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 ($2.2B).

Long Term Liabilities: NRG's short term assets ($3.1B) do not cover its long term liabilities ($8.4B).


Debt to Equity History and Analysis

Debt Level: NRG's debt to equity ratio (332.4%) is considered high.

Reducing Debt: NRG's debt to equity ratio has increased from 165.4% to 332.4% over the past 5 years.

Debt Coverage: NRG's debt is well covered by operating cash flow (28.9%).

Interest Coverage: NRG's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRG's dividend (4.16%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: NRG's dividend (4.16%) is low compared to the top 25% of dividend payers in the US market (4.88%).


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 (5.4%), 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 (34.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Mauricio Gutierrez (49 yo)

4.75yrs

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 ($USD9.15M) is about average for companies of similar size in the US market ($USD7.46M).

Compensation vs Earnings: Mauricio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mauricio Gutierrez
President4.75yrsUS$9.15m0.33%
$ 23.0m
Kirkland Andrews
Executive VP & CFO9yrsUS$3.02m0.097%
$ 6.8m
Christopher Moser
Executive Vice President of Operations2.67yrsUS$2.23m0.047%
$ 3.3m
Brian Curci
Senior VP & General Counsel2.5yrsUS$1.47m0.011%
$ 768.9k
Elizabeth Killinger
Executive VP & President of Retail and Reliant4.58yrsUS$2.21m0.045%
$ 3.1m
David Callen
Senior VP & Chief Accounting Officer5.5yrsno data0.018%
$ 1.3m
Jennifer Wallace
Senior Vice President of Administration4.5yrsno datano data
Kevin Cole
Sr. Vice President4.67yrsno datano data
Robert Gaudette
Senior Vice President of Business Solutions6.75yrsUS$1.48m0.020%
$ 1.4m
Judith Lagano
Senior Vice President of Asset Management5.17yrsno datano data
Dak Liyanearachchi
Senior Vice President of Data & Analytics0.083yrno datano data
Gaetan Frotte
Senior VP & Treasurer4.67yrsno datano data

4.7yrs

Average Tenure

49yo

Average Age

Experienced Management: NRG's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mauricio Gutierrez
President4.75yrsUS$9.15m0.33%
$ 23.0m
Thomas Weidemeyer
Independent Director16.75yrsUS$287.01k0.0085%
$ 595.7k
Paul Hobby
Independent Director14.5yrsUS$287.01k0.031%
$ 2.2m
Lawrence Coben
Independent Chairman of the Board3.58yrsUS$473.46k0.0010%
$ 70.4k
E. Abraham
Independent Director7.75yrsUS$291.87k0.0027%
$ 192.9k
Alexandra D. Pruner
Independent Director0.92yrUS$229.98k0.000030%
$ 2.1k
Anne Schaumburg
Independent Director15.42yrsUS$309.77k0.0043%
$ 299.9k
Matthew Carter
Independent Director2.5yrsUS$268.39kno data
Antonio Carrillo
Independent Director0.92yrUS$229.98kno data
Heather M. Cox
Independent Director2.5yrsUS$267.84k0.0037%
$ 262.6k

4.1yrs

Average Tenure

59yo

Average Age

Experienced Board: NRG's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$7.041b
  • Shares outstanding: 244.14m
  • 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
NRAXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 2003
0K4CLSE (London Stock Exchange)YesCommon StockGBUSDDec 2003
N1RG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 05:58
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.