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

Acceptable track record and slightly overvalued.


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

2.5%

NRG

0.6%

US Renewable Energy

1.8%

US Market


1 Year Return

9.0%

NRG

18.6%

US Renewable Energy

7.3%

US Market

Return vs Industry: NRG underperformed the US Renewable Energy industry which returned 18.6% over the past year.

Return vs Market: NRG exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

NRGIndustryMarket
7 Day2.5%0.6%1.8%
30 Day3.1%1.0%-0.7%
90 Day14.3%9.7%0.06%
1 Year9.4%9.0%22.7%18.6%9.7%7.3%
3 Year253.8%248.5%63.5%39.9%46.3%36.9%
5 Year44.6%35.1%28.3%-1.1%64.5%46.5%

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

Undervalued: NRG ($40.15) is trading below our estimate of fair value ($84.47)

Significantly Undervalued: NRG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NRG is poor value based on its PE Ratio (25x) compared to the Renewable Energy industry average (19.1x).

PE vs Market: NRG is poor value based on its PE Ratio (25x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: NRG is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: NRG has negative assets, so we can't compare its PB Ratio to the US Renewable Energy industry average.


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRG's forecast earnings growth (5.1% per year) is above the savings rate (2.7%).

Earnings vs Market: NRG's earnings (5.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: NRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: NRG's revenue (1.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NRG's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NRG's Return on Equity is forecast to be very high in 3 years time (62%).


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

Earnings Trend: NRG has become profitable over the past 5 years, growing earnings by 17.9% per year.

Accelerating Growth: NRG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NRG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (33.9%).


Return on Equity

High ROE: NRG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: NRG has a higher Return on Assets than the Renewable Energy industry average last year.


Return on Capital Employed

ROCE Improving: NRG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is NRG Energy's financial position?


Financial Position Analysis

Short Term Liabilities: NRG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NRG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NRG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NRG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: NRG's debt is well covered by operating cash flow (21.3%).

Interest Coverage: NRG's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: NRG has a high level of physical assets or inventory.

Debt Coverage by Assets: NRG 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?

0.30%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.5%markettop25%3.7%industryaverage3.2%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NRG's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NRG's dividend (0.3%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: NRG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NRG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NRG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NRG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Mauricio Gutierrez (48yo)

3.8yrs

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

Compensation vs. Market: Mauricio's total compensation ($USD8.91M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: NRG's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: NRG's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

Ownership Breakdown


Management Team

  • Mauricio Gutierrez (48yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$8.91m
  • Rob Gaudette (46yo)

    Senior Vice President of Business Solutions

    • Tenure: 5.8yrs
    • Compensation: US$1.48m
  • Barry Smitherman (61yo)

    Consultant

    • Tenure: 1.6yrs
    • Compensation: US$144.64k
  • Chris Moser (48yo)

    Executive Vice President of Operations

    • Tenure: 1.8yrs
    • Compensation: US$2.20m
  • Elizabeth Killinger (49yo)

    Executive VP & President of Retail and Reliant

    • Tenure: 3.7yrs
    • Compensation: US$2.17m
  • Jennifer Wallace

    Senior Vice President of Administration

    • Tenure: 3.6yrs
  • Kirk Andrews (51yo)

    Executive VP & CFO

    • Tenure: 8.1yrs
    • Compensation: US$3.00m
  • Brian Curci (41yo)

    Senior VP & General Counsel

    • Tenure: 1.6yrs
  • David Callen (47yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.6yrs
  • Kevin Cole

    Sr. Vice President

    • Tenure: 3.8yrs

Board Members

  • Bill Hantke (71yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: US$302.96k
  • Tom Weidemeyer (71yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$287.01k
  • Terry Dallas (69yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$292.32k
  • William Hobby (58yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: US$287.01k
  • Larry Coben (60yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$472.49k
  • E. Abraham (66yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$295.32k
  • Anne Schaumburg (69yo)

    Director

    • Tenure: 14.5yrs
    • Compensation: US$270.89k
  • Matt Carter (58yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$416.56k
  • Mauricio Gutierrez (48yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$8.91m
  • Heather Cox (48yo)

    Director

    • Tenure: 1.6yrs
    • 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$10.157b
  • 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 Analysis2019/10/18 23:50
End of Day Share Price2019/10/18 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.