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NRG

S&P 500
Weak · 15/100

NRG Energy

Utilities
Independent Power Producers & Energy Traders

$138.91

2.9%

Updated Today 7:15 PM ET

Price — Past Year

▼ Down 11.5% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$28.50B

P/E

120.58x

Forward P/E (est.)

172.26x

ROE

8.8%

Revenue Growth

10.6%

EPS Growth

-81.7%

Profit Margin

0.7%

FCF Yield

-2.1%

Debt / Equity

9.78x

ROIC

6.0%

Interest Coverage

2.77x

Current Ratio

0.84x

Dividend Yield

1.5%

Implied Growth (rev. DCF)

6.1%

Rating Score

15/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what NRG's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. NRG trades near $138.91, below its 50-day average ($143.53) and 200-day average ($156.63). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 44 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. NRG's is $5.44 (~3.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month NRG found buyers near $120.11 (support) and sellers near $143.08 (resistance); its 52-week range is $120.11–$189.96. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.7× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

NRG Energy (NRG) is a large-cap company in the Independent Power Producers & Energy Traders industry, part of the Utilities sector of the S&P 500, with a market value around $28.50B.

In its latest reported year it generated about $30.35B in revenue and $864.00M in net profit.

Our model rates NRG Weak (15/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

3.2%

Revenue moved from $26.78B in 2021 to $30.35B in 2025, a 3.2% compound annual growth rate. The most recent year grew a steady 10.6% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

19.1%

Operating Margin

6.1%

Net Margin

2.8%

ROE

8.8%

NRG Energy keeps about 0.7% of each sales dollar as net profit, with a 19.1% gross margin and 6.1% operating margin. Return on equity is 8.8% and return on invested capital about 6.0%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research

Total Debt

$23.18B

Net Debt

$23.00B

Net Debt / EBITDA

12.47x

Debt / Equity

9.78x

Leverage: debt-to-equity is 9.8x, and operating profit covers interest about 2.8x, with a current ratio of 0.8x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $23.18B of total debt against $178.00M of cash.

Cash Flow Analysis
Research

Operating CF

$1.91B

Free Cash Flow

$766.00M

FCF Margin

2.5%

In the latest year NRG Energy produced about $1.91B of operating cash flow and $766.00M of free cash flow after capital spending. That is a free-cash-flow yield of about -2.1% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

120.58x

P/S

0.92x

P/B

18.56x

EV / EBITDA

15.65x

NRG trades at 120.6x trailing earnings (about 172.3x on estimated forward earnings), 0.9x sales, and 18.6x book value. Reverse-engineering today's price implies the market expects roughly 6.1% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
120.6xExpensive
Forward P/E
172.3xExpensive
P/S ratio
0.9xCheap
Revenue growth
10.6%Strong
EPS growth
-81.7%Weak
Gross margin
19.1%Weak
Net margin
0.7%Weak
ROE
8.8%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How NRG stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.

In the Utilities sector (31 S&P 500 companies), NRG ranks #31 of 31 by our overall rating. It trades at a premium versus the sector on earnings (120.6x P/E vs. 21.8x median) with a lower return on equity (8.8% vs. 10.4%) and faster revenue growth (10.6% vs. 9.0%).

P/E vs sector

120.6x

median 21.8x

ROE vs sector

8.8%

median 10.4%

Growth vs sector

10.6%

median 9.0%

Sector rank

#31

of 31 by rating

CompanyP/ERev Gr.Rating
NRGThis stock120.6x10.6%Weak· 15
AES7.7x3.0%Neutral· 48
ATO21x8.8%Favorable· 66
CNP26x1.4%Weak· 37
EIX7.4x13.2%Favorable· 65
AEE19.7x12.3%Favorable· 64
FE25.3x8.9%Weak· 38
PPL21.8x-58.8%Neutral· 55
Utilities median21.8x9.0%54/100

Valuation vs. quality map

sector medianAESATOCNPEIXAEEFEPPLNRGP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$530.79$879.80

vs. $138.91 today · expected CAGR 31%45%

Metric20262027202820292030
Revenue$33.69B$37.39B$41.50B$46.07B$51.14B
Net income$1.01B$1.12B$1.25B$1.38B$1.53B
EPS$4.79$5.32$5.90$6.55$7.27
Share price (low)$349.65$388.11$430.80$478.19$530.79
Share price (high)$579.55$643.30$714.06$792.61$879.80
CAGR (low–high)152% / 317%67% / 115%46% / 73%36% / 55%31% / 45%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for NRG:

  • Revenue is growing 10.6% a year, a sign of real demand.
  • As an established S&P 500 member in Utilities, it brings scale and a long operating history.
Bear Case

The case against NRG:

  • Thin net margins (0.7%) leave little room for error.
  • Elevated leverage (debt/equity 9.8x) adds financial risk.
  • Interest coverage is thin (2.8x), so debt costs bite.
  • A rich 120.6x earnings multiple prices in a lot of growth.
  • Limited free cash flow at today's price.
  • Our model's overall read is Weak (15/100).
Key Risks
Research

Valuation risk — at 120.6x earnings, disappointing results could compress the multiple.

Balance-sheet risk — debt/equity of 9.8x magnifies the impact of higher rates or weaker earnings.

Margin risk — thin profitability (0.7%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: NRG Energy is a large-cap utilities business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at 120.6x earnings, which our model scores Weak (15/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.