NRG Energy Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Independent Power Producers
NRG Energy is a leading energy and home services company powered by people and our passion for a smarter, cleaner, and more connected future. A Fortune 500 company operating in the United States and Canada, NRG delivers innovative solutions that help people, organizations, and businesses achieve their goals while also advocating for competitive energy markets and customer choice.
Did you know?
Carries 3.5x more debt than cash on its balance sheet.
Current Price
$152.69
+1.86%GoodMoat Value
$493.51
223.2% undervaluedProfile
Valuation (TTM)
Market Cap$29.26B
P/E36.71
EV$40.97B
P/B17.41
Shares Out191.64M
P/Sales0.95
Revenue$30.71B
EV/EBITDA14.85
NRG Energy Inc (NRG) Stock Analysis
GoodMoat Analysis
NRG Energy is a large independent power producer with a high ROE but significant debt and a valuation that appears stretched. The company's high debt level and low profit margin present significant quality concerns that may fail the initial gate of a value investing framework.
Read full analysis
NRG Energy is an independent power producer (IPP) operating in the utilities sector, generating and selling electricity. From a value investing perspective, the initial analysis focuses on moat and quality. The provided data does not offer clear evidence of a durable competitive advantage (moat) as defined by the GoodMoat framework, such as network effects or proprietary data typical of IPPs. The company's quality indicators are mixed. While the Return on Equity (ROE) of 51.4% is exceptionally high, this is likely amplified by its extremely high Debt/Equity ratio of 9.89, which far exceeds the favourable threshold of less than 1.0x Debt/EBITDA. This indicates a leveraged balance sheet, not a strong quality signal. Other metrics are weak: a low Profit Margin of 2.8% and Operating Margin of 6.0% suggest limited pricing power and efficiency. The Free Cash Flow Yield of 2.6% is below the desirable >10-15% FCF margin threshold. Applying the Decision Framework's Step 1 gate, the business shows multiple weak quality fundamentals, particularly the leveraged balance sheet and low margins, which would likely prevent proceeding to a full valuation analysis. The current P/E of 36.3x appears high relative to the modest profit margin and growth profile, and the GoodMoat Target price of $493.51 implies a margin of safety that is difficult to reconcile with the underlying financial risk profile. For a value investor, the high financial leverage is a critical red flag that overshadows other metrics.
Market Cap$29.26B
Current Price$152.69
P/E Ratio36.71
Forward P/E—
PEG Ratio-0.40
EPS$4.01
Book Value$8.77
P/B Ratio17.41
NRG Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -7.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 11.9B
Revenue
9.8B
FY19
9.1B
FY20
27.0B
FY21
31.5B
FY22
28.8B
FY23
28.1B
FY24
30.7B
FY25
Net Income
4.4B
FY19
510M
FY20
2.2B
FY21
1.2B
FY22
—
FY23
1.1B
FY24
864M
FY25
NRG 52-Week Range
$84.86
$184.03
50-Day MA: $158.18200-Day MA: $158.66
Did you know?
Profit margin stands at 2.8%.
NRG Energy Inc (NRG) Financial Summary
NRG Energy Inc (NRG) is a Utilities company in the Utilities - Independent Power Producers industry, listed on NYSE. The stock currently trades at $152.69 with a market capitalization of $29.26B.
Key valuation metrics include a P/E ratio of 36.71, price-to-book ratio of 17.41, and EPS of $4.01. The company reports a profit margin of 2.8% and return on equity of 51.4%.
NRG Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $29.26B |
| P/E Ratio | 36.71 |
| EPS | $4.01 |
| P/B Ratio | 17.41 |
| P/S Ratio | 0.95 |
| EV/EBITDA | 14.85 |
| Dividend Yield | 1.40% |
| Profit Margin | 2.8% |
| Return on Equity | 51.4% |
| Debt/Equity | 9.89 |
NRG Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.82B | $4.44B |
| FY20 | $9.09B | $510.00M |
| FY21 | $26.99B | $2.19B |
| FY22 | $31.54B | $1.22B |
| FY23 | $28.82B | $-202.00M |
| FY24 | $28.13B | $1.13B |
| FY25 | $30.71B | $864.00M |
NRG Energy Inc (NRG) Valuation
Based on GoodMoat's DCF model, NRG Energy Inc has a fair value estimate of $493.51. At the current price of $152.69, the stock appears 69.1% undervalued relative to our intrinsic value estimate.
NRG Quality Indicators
NRG Energy Inc maintains a profit margin of 2.8% and an operating margin of 6.0%. Return on equity stands at 51.4%. The current ratio is 1.64. Debt-to-equity ratio is 9.89.
About NRG Energy Inc
NRG Energy is a leading energy and home services company powered by people and our passion for a smarter, cleaner, and more connected future. A Fortune 500 company operating in the United States and Canada, NRG delivers innovative solutions that help people, organizations, and businesses achieve their goals while also advocating for competitive energy markets and customer choice.
NRG Free Cash Flow
NRG Energy Inc generated $766.00M in trailing twelve-month free cash flow, representing an FCF yield of 2.62%. This moderate FCF yield indicates reasonable cash generation.
NRG Shares Outstanding
NRG Energy Inc has 0.19 billion shares outstanding at a share price of $152.69, giving it a market capitalization of $29.26B.
NRG Recent Insider Trades
Recent insider transactions at NRG Energy Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Kinney Virginia (Exec VP, Chief Admin Officer) | SELL | 5,000 | $783250.00 |
| LS Power Equity Advisors, LLC | SELL | 14,300,000 | $2.35B |
| Nanus David | SELL | 14,300,000 | $2.35B |