NRG Energy, Inc. (NRG)
Utilities · NYQ · US
Fundamentals
Valuation and ratings
NRG Energy, Inc. trades at USD132.75, which is 58% above the USD55.79 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 28 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 153.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About NRG Energy, Inc.
NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through the Texas, East, West/Other, Vivint Smart Home, and Corporate Activities segments. The company offers retail electricity, energy management, demand response and virtual power plant programs, carbon offsets, smart home security, and automation services. It also offers system power, distributed and backup generation, energy storage, energy management, renewable and low-carbon products, and carbon management solutions for large business and commercial customers; a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions; and generation portfolio includes fossil fuel and renewable generation assets diversified by fuel type and dispatch level, with ongoing development of new natural gas and renewable projects. In addition, the company trades in power, natural gas, and related products; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, data center, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Lyrical Asset Management, LYRICAL ASSET MANAGEMENT LP$406.89M · 6.2% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$290.23M · 0.1% of book
- David Tepper, Appaloosa LP$253.47M · 4.3% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$139.46M · 0.1% of book
- Bridgewater Associates, LP$86.00M · 0.4% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is NRG Energy, Inc. (NRG) undervalued?
Against our discounted cash flow estimate of USD55.79, NRG at USD132.75 is 58% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own NRG?
13 of the institutions we track reported a position in NRG in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is NRG's P/E ratio?
NRG trades at 153.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.