NRG Energy, Inc.
NRG Energy, Inc. Fundamental Analysis
NRG Energy, Inc. (NRG) shows weak financial fundamentals with a PE ratio of 118.20, profit margin of 0.74%, and ROE of 8.84%. The company generates $33.1B in annual revenue with moderate year-over-year growth of 9.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NRG's fundamental strength across five key dimensions:
Efficiency Score
WeakNRG struggles to generate sufficient returns from assets.
Valuation Score
ModerateNRG shows balanced valuation metrics.
Growth Score
ModerateNRG shows steady but slowing expansion.
Financial Health Score
WeakNRG carries high financial risk with limited liquidity.
Profitability Score
WeakNRG struggles to sustain strong margins.
Key Financial Metrics
Is NRG Expensive or Cheap?
P/E Ratio
NRG trades at 118.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NRG's PEG of -1.36 indicates potential undervaluation.
Price to Book
The market values NRG Energy, Inc. at 5.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.87 times EBITDA. This is generally considered low.
How Well Does NRG Make Money?
Net Profit Margin
For every $100 in sales, NRG Energy, Inc. keeps $0.74 as profit after all expenses.
Operating Margin
Core operations generate 3.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.84 in profit for every $100 of shareholder equity.
ROA
NRG Energy, Inc. generates $0.60 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 $906.12M, signaling weaker underlying cash strength.
Free Cash Flow
NRG Energy, Inc. generates weak or negative free cash flow of $-364.89M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.73 in free cash annually.
FCF Yield
NRG converts -1.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
118.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How NRG Stacks Against Its Sector Peers
| Metric | NRG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 118.20 | 19.58 | Worse (Expensive) |
| ROE | 8.84% | 917.00% | Weak |
| Net Margin | 0.74% | 853.00% | Weak |
| Debt/Equity | 4.79 | 1.42 | Weak (High Leverage) |
| Current Ratio | 0.84 | 1.37 | Weak Liquidity |
| ROA | 0.60% | -4838.00% (disorted) | Weak |
NRG 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
324.33%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
112.85%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
30.84%
Industry Style: Defensive, Dividend, Income
High Growth