NRG Energy, Inc.
NRG Energy, Inc. Fundamental Analysis
NRG Energy, Inc. (NRA.DE) shows weak financial fundamentals with a PE ratio of 32.13, profit margin of 2.81%, and ROE of 39.65%. The company generates $34.6B in annual revenue with weak year-over-year growth of -1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -63.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NRA.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakNRA.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateNRA.DE shows balanced valuation metrics.
Growth Score
WeakNRA.DE faces weak or negative growth trends.
Financial Health Score
ModerateNRA.DE shows balanced financial health with some risks.
Profitability Score
ModerateNRA.DE maintains healthy but balanced margins.
Key Financial Metrics
Is NRA.DE Expensive or Cheap?
P/E Ratio
NRA.DE trades at 32.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NRA.DE's PEG of -0.68 indicates potential undervaluation.
Price to Book
The market values NRG Energy, Inc. at 16.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.72 times EBITDA. This is generally considered low.
How Well Does NRA.DE Make Money?
Net Profit Margin
For every $100 in sales, NRG Energy, Inc. keeps $2.81 as profit after all expenses.
Operating Margin
Core operations generate 6.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.65 in profit for every $100 of shareholder equity.
ROA
NRG Energy, Inc. generates $2.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NRG Energy, Inc. generates limited operating cash flow of $2.15B, signaling weaker underlying cash strength.
Free Cash Flow
NRG Energy, Inc. generates weak or negative free cash flow of $861.86M, restricting financial flexibility.
FCF Per Share
Each share generates $4.02 in free cash annually.
FCF Yield
NRA.DE converts 2.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How NRA.DE Stacks Against Its Sector Peers
| Metric | NRA.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.13 | 20.07 | Worse (Expensive) |
| ROE | 39.65% | 911.00% | Weak |
| Net Margin | 2.81% | 644.00% | Weak |
| Debt/Equity | 9.97 | 1.50 | Weak (High Leverage) |
| Current Ratio | 1.64 | 1.49 | Neutral |
| ROA | 2.96% | -324.00% (disorted) | Weak |
NRA.DE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NRG Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
112.85%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
30.84%
Industry Style: Defensive, Dividend, Income
High Growth