NRG Energy Stock Analysis, Valuation (NYSE:NRG)

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$33.95 $0.16 (0.47%) NRG stock closing price Aug 17, 2018 (Closing)

View the NRG Energy stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for NRG stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

NRG Energy Inc Stock Rating 2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for NRG stock analysis. NRG Energy valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. NRG Energy stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy NRG stock?

  • The price to earnings multiple of 14.7 is attractive when compared with the sector average PE ratio of 20.1.
  • The lower PS ratio 1 for NRG stock versus Utilities sector average of 2.1 is a positive for the company.

Should you sell NRG stock?

  • NRG Energy sales shrank by -12.3% year-over-year in 2018-03.
  • Over the last 5 years, the company registered a poor revenue growth of 4.3.
  • Over the last twelve months, NRG Energy posted an average operating loss margin of -2.14.
  • NRG Energy registered an average TTM Net loss of -16%.
  • NRG Energy has a debt/equity ratio of 7.25, which is worse than the average in the Utilities sector.
  • -0.7's negative ROIC of -0.7 indicates operational inefficiency.
  • NRG Energy has a negative return on equity of -55.5. This indicates that the firm is inefficient at generating profits.

Comments on this video and NRG Energy stock

Investors can make use of the Amigobulls NRG Energy stock analysis to ascertain how NRG stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

NRG Energy revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about NRG stock.