NRG Energy NRG
NRG Energy is an integrated energy company that generates, markets, and supplies electricity and energy to residential and commercial customers in the United States, with a business model that combines power generation with retail supply. NRG Energy shows fragile financial health with net debt of 7.16x EBITDA and leverage of 483% of equity, making it vulnerable to the rising rate environment. Its valuation (P/E 26.14, P/B 5.02) is not cheap, although its return on equity (ROE 23.77%) is solid. Momentum is very negative (3rd percentile in 52 weeks), reflecting market pressure.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
NRG Energy is an integrated energy company that generates, markets, and supplies electricity and energy to residential and commercial customers in the United States, with a business model that combines power generation with retail supply. NRG Energy shows fragile financial health with net debt of 7.16x EBITDA and leverage of 483% of equity, making it vulnerable to the rising rate environment. Its valuation (P/E 26.14, P/B 5.02) is not cheap, although its return on equity (ROE 23.77%) is solid. Momentum is very negative (3rd percentile in 52 weeks), reflecting market pressure.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.4 |
| Quality / Moat | 5.2 |
| Valuation | 4.2 |
| Growth | 6.9 |
| Dividend | 6.5 |
| Momentum | 2.5 |
| Risk & Context | 5.0 |
OVERALL SCORE: 4.8/10
Context and risks
NRG is an independent power producer (IPP) with thermal and renewable generation. The rise in 10-year rates (5.17%) makes refinancing its very high debt (ND/EBITDA 7.16) more expensive and pressures the present value of its cash flows. The rally in crude oil and gas (not covered by the system) raises its fuel costs in generation, although it can partially pass them through to retail prices.
News considered in the analysis
- NRG Energy (NRG) Stock May Be Cheap Relative To Earnings — Análisis genérico de valoración sin información nueva; no aporta datos concretos no conocidos.
- Is NRG Energy (NRG) A Bargain Following Its Pullback And EPS Growth Expectations? — Artículo de opinión sobre valoración tras la caída; sin hechos materiales nuevos.
- NRG Energy (NRG) Outpaces Stock Market Gains: What You Should Know — Comentario de movimiento de mercado sin información fundamental nueva.
- VST Keeps Writing Checks To Its Shareholders — Noticia sobre un competidor (Vistra) sin impacto directo en NRG.
- Clearway Energy (CWEN) Suffers a Larger Drop Than the General Market: Key Insights — Noticia sobre otra empresa del sector; sin implicación directa para NRG.
Verdict: Hold under watch; high leverage and rate exposure make the risk outweigh the appeal of its profitability.
Main risk: The main risk is the high leverage (net debt/EBITDA 7.16) in a rising interest rate environment, which makes debt service more expensive and can compress margins and dividend capacity.
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