Is NRG Energy Stock a Good Investment?
NRG Energy Investment Advice | NRG |
- Examine NRG Energy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research NRG Energy's leadership team and their track record. Good management can help NRG Energy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Independent Power and Renewable Electricity Producers space and any emerging trends that could impact NRG Energy's business and its evolving consumer preferences.
- Compare NRG Energy's performance and market position to its competitors. Analyze how NRG Energy is positioned in terms of product offerings, innovation, and market share.
- Check if NRG Energy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about NRG Energy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NRG Energy stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NRG Energy is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine NRG Energy Stock
Researching NRG Energy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.4. NRG Energy last dividend was issued on the 1st of November 2024. The entity had 2:1 split on the 1st of June 2007.
To determine if NRG Energy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NRG Energy's research are outlined below:
| The company reported the last year's revenue of 28.82 B. Reported Net Loss for the year was (202 M) with profit before taxes, overhead, and interest of 4.1 B. | |
| NRG Energy has about 430 M in cash with (221 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.47. | |
| NRG Energy has a poor financial position based on the latest SEC disclosures | |
| Over 97.0% of the company shares are owned by institutional investors | |
| On 15th of November 2024 NRG Energy paid $ 0.4075 per share dividend to its current shareholders | |
| Latest headline from insidermonkey.com: NRG Energy Gains Momentum with AI-Driven Power Solutions and Positive Financial Outlook |
NRG Energy Quarterly Cash And Short Term Investments |
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NRG Energy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NRG Energy. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NRG Energy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact NRG Energy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NRG Energy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-05-09 | 2006-03-31 | 0.14 | 0.12 | -0.02 | 14 | ||
2005-08-09 | 2005-06-30 | 0.15 | 0.11 | -0.04 | 26 | ||
2015-08-04 | 2015-06-30 | -0.01 | -0.06 | -0.05 | 500 | ||
2008-05-01 | 2008-03-31 | 0.41 | 0.46 | 0.05 | 12 | ||
2008-07-29 | 2008-06-30 | 0.55 | 0.49 | -0.06 | 10 | ||
2007-05-02 | 2007-03-31 | 0.4 | 0.34 | -0.06 | 15 | ||
2019-05-02 | 2019-03-31 | 0.41 | 0.34 | -0.07 | 17 | ||
2011-11-03 | 2011-09-30 | 0.34 | 0.43 | 0.09 | 26 |
Know NRG Energy's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as NRG Energy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NRG Energy backward and forwards among themselves. NRG Energy's institutional investor refers to the entity that pools money to purchase NRG Energy's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 3.6 M | Two Sigma Advisers, Llc | 2024-06-30 | 2.9 M | Banco Santander Central Hispano Sa | 2024-06-30 | 2.8 M | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 2.7 M | Millennium Management Llc | 2024-06-30 | 2.6 M | Bank Of America Corp | 2024-06-30 | 2.5 M | Bnp Paribas Arbitrage, Sa | 2.3 M | Bank Of New York Mellon Corp | 2024-06-30 | 2.2 M | Northern Trust Corp | 2024-09-30 | 2 M | Vanguard Group Inc | 2024-09-30 | 28.3 M | Blackrock Inc | 2024-06-30 | 19.4 M |
NRG Energy's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 19.34 B.Market Cap |
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NRG Energy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.01) | (0.01) | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | (0.01) | (0.01) | |
| Return On Equity | (0.07) | (0.07) |
Determining NRG Energy's profitability involves analyzing its financial statements and using various financial metrics to determine if NRG Energy is a good buy. For example, gross profit margin measures NRG Energy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NRG Energy's profitability and make more informed investment decisions.
NRG Energy's Earnings Breakdown by Geography
Evaluate NRG Energy's management efficiency
NRG Energy has Return on Asset of 0.019 % which means that on every $100 spent on assets, it made $0.019 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3193 %, implying that it generated $0.3193 on every 100 dollars invested. NRG Energy's management efficiency ratios could be used to measure how well NRG Energy manages its routine affairs as well as how well it operates its assets and liabilities. The NRG Energy's current Return On Capital Employed is estimated to increase to 0.02, while Return On Tangible Assets are forecasted to increase to (0.01). At this time, NRG Energy's Other Assets are most likely to increase significantly in the upcoming years. The NRG Energy's current Intangible Assets is estimated to increase to about 4.1 B, while Non Current Assets Total are projected to decrease to roughly 15.3 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.75 | 12.83 | |
| Tangible Book Value Per Share | (26.75) | (25.42) | |
| Enterprise Value Over EBITDA | 12.37 | 9.97 | |
| Price Book Value Ratio | 4.06 | 4.26 | |
| Enterprise Value Multiple | 12.37 | 9.97 | |
| Price Fair Value | 4.06 | 4.26 | |
| Enterprise Value | 19.6 B | 17.5 B |
The strategic initiatives led by NRG Energy's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0171 | Forward Dividend Yield 0.0171 | Forward Dividend Rate 1.63 | Beta 1.088 |
Basic technical analysis of NRG Stock
As of the 25th of November, NRG Energy secures the mean deviation of 1.62, and Risk Adjusted Performance of 0.098. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of NRG Energy, as well as the relationship between them. Please verify NRG Energy information ratio, as well as the relationship between the potential upside and kurtosis to decide if NRG Energy is priced more or less accurately, providing market reflects its recent price of 95.48 per share. Given that NRG Energy has jensen alpha of 0.1864, we recommend you to check NRG Energy's last-minute market performance to make sure the company can sustain itself at some point in the future.NRG Energy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific NRG Energy insiders, such as employees or executives, is commonly permitted as long as it does not rely on NRG Energy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases NRG Energy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
NRG Energy's Outstanding Corporate Bonds
NRG Energy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. NRG Energy uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most NRG bonds can be classified according to their maturity, which is the date when NRG Energy has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| NRG Energy 525 Corp BondUS629377CH34 | View | |
| NRG Energy 575 Corp BondUS629377CE03 | View | |
| NRG Energy 6625 Corp BondUS629377CC47 | View | |
| US629377CS98 Corp BondUS629377CS98 | View | |
| US629377CR16 Corp BondUS629377CR16 | View | |
| US629377CQ33 Corp BondUS629377CQ33 | View |
Understand NRG Energy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing NRG Energy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.098 | |||
| Market Risk Adjusted Performance | 0.4587 | |||
| Mean Deviation | 1.62 | |||
| Semi Deviation | 2.19 | |||
| Downside Deviation | 2.37 | |||
| Coefficient Of Variation | 838.45 | |||
| Standard Deviation | 2.22 | |||
| Variance | 4.94 | |||
| Information Ratio | 0.0604 | |||
| Jensen Alpha | 0.1864 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0565 | |||
| Treynor Ratio | 0.4487 | |||
| Maximum Drawdown | 12.23 | |||
| Value At Risk | (3.98) | |||
| Potential Upside | 2.93 | |||
| Downside Variance | 5.64 | |||
| Semi Variance | 4.82 | |||
| Expected Short fall | (1.74) | |||
| Skewness | (0.57) | |||
| Kurtosis | 1.68 |
| Risk Adjusted Performance | 0.098 | |||
| Market Risk Adjusted Performance | 0.4587 | |||
| Mean Deviation | 1.62 | |||
| Semi Deviation | 2.19 | |||
| Downside Deviation | 2.37 | |||
| Coefficient Of Variation | 838.45 | |||
| Standard Deviation | 2.22 | |||
| Variance | 4.94 | |||
| Information Ratio | 0.0604 | |||
| Jensen Alpha | 0.1864 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0565 | |||
| Treynor Ratio | 0.4487 | |||
| Maximum Drawdown | 12.23 | |||
| Value At Risk | (3.98) | |||
| Potential Upside | 2.93 | |||
| Downside Variance | 5.64 | |||
| Semi Variance | 4.82 | |||
| Expected Short fall | (1.74) | |||
| Skewness | (0.57) | |||
| Kurtosis | 1.68 |
Consider NRG Energy's intraday indicators
NRG Energy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NRG Energy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
NRG Energy Corporate Filings
| 21st of November 2024 Other Reports | ViewVerify | |
F4 | 15th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 8th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
NRG Stock media impact
Far too much social signal, news, headlines, and media speculation about NRG Energy that are available to investors today. That information is available publicly through NRG media outlets and privately through word of mouth or via NRG internal channels. However, regardless of the origin, that massive amount of NRG data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of NRG Energy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NRG Energy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NRG Energy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NRG Energy alpha.
NRG Energy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards NRG Energy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
NRG Energy Historical Investor Sentiment
Investor biases related to NRG Energy's public news can be used to forecast risks associated with an investment in NRG. The trend in average sentiment can be used to explain how an investor holding NRG can time the market purely based on public headlines and social activities around NRG Energy. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
NRG Energy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NRG Energy and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average NRG Energy news discussions. The higher the estimate score, the more favorable the investor's outlook on NRG Energy.
NRG Energy Corporate Directors
| Matthew Carter | Independent Director | Profile | |
| Paul Hobby | Independent Director | Profile | |
| Edward Abraham | Independent Director | Profile | |
| Heather Cox | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NRG Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in NRG Stock please use our How to Invest in NRG Energy guide.You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Is Independent Power and Renewable Electricity Producers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NRG Energy. If investors know NRG will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NRG Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.696 | Dividend Share 1.63 | Earnings Share 4.04 | Revenue Per Share 133.419 | Quarterly Revenue Growth (0.09) |
The market value of NRG Energy is measured differently than its book value, which is the value of NRG that is recorded on the company's balance sheet. Investors also form their own opinion of NRG Energy's value that differs from its market value or its book value, called intrinsic value, which is NRG Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NRG Energy's market value can be influenced by many factors that don't directly affect NRG Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between NRG Energy's value and its price, as these two are different measures arrived at by various means. Investors typically determine if NRG Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NRG Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.