📊 NRG Key Takeaways
Is Nrg Energy, Inc.. (NRG) a Good Investment?
NRG Energy exhibits severe financial stress marked by negative operating cash flow (-$169M) and negative free cash flow (-$486M), indicating the core business is not self-sustaining despite $10.3B in revenue. Extremely high leverage (4.76x debt-to-equity) combined with liquidity ratios below 1.0 (current ratio 0.84x) creates meaningful solvency risk, while razor-thin profit margins (1.2% net margin) and minimal capital returns (2.6% ROE, 0.3% ROA) demonstrate fundamental profitability challenges.
NRG Energy shows stable but low-margin profitability, with modest revenue growth and improving net income supported by solid operating cash flow. Financial health is mixed: liquidity and interest coverage are acceptable, but leverage is very high and the small equity base makes balance sheet risk meaningful. Overall, the fundamentals support resilience rather than a clearly strong growth-quality profile.
Nrg Energy, Inc.. Key Strengths (NRG)
- Positive net income growth of 8.4% year-over-year showing operational improvement trajectory
- Large established asset base ($40.1B) and scale in essential infrastructure sector
- Interest coverage ratio of 2.2x maintained above 1.0, providing some debt service cushion
- Positive YoY revenue and net income growth indicate underlying earnings stability
- Operating cash flow remains solid and supports positive free cash flow after capital spending
- Liquidity is healthy and interest coverage suggests current debt servicing capacity is manageable
NRG Stock Risks: Nrg Energy, Inc.. Investment Risks
- Negative operating cash flow (-$169M) indicates core business is not generating operating cash; unsustainable long-term
- Critical liquidity crisis indicators: current ratio 0.84x and quick ratio 0.78x both below 1.0, threatening ability to meet short-term obligations
- Excessive leverage at 4.76x debt-to-equity with $23.2B long-term debt; limited capacity to weather market downturns or refinancing challenges
- Extremely low profitability: 1.2% net margin and minimal capital returns (ROE 2.6%, ROA 0.3%) provide minimal buffer for distress
- Debt load is heavy, with very high debt-to-equity and a thin equity cushion
- Profit margins are narrow, limiting flexibility if costs rise or demand weakens
- Diluted EPS declined despite net income growth, which raises questions about earnings quality per share
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate business sustainability
- Debt-to-equity ratio movement - any further increase signals accelerating financial distress
- Current ratio trajectory - critical if it falls below 0.80 or improves toward 1.0+
- Interest coverage ratio - monitor for deterioration below 2.0x as early warning sign
- Free cash flow generation - path to positive FCF is essential for long-term viability
- Free cash flow and FCF margin
- Leverage reduction through debt balances relative to equity and cash flow
Nrg Energy, Inc.. (NRG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NRG Profit Margin, ROE & Profitability Analysis
NRG vs Utilities Sector: How Nrg Energy, Inc.. Compares
How Nrg Energy, Inc.. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nrg Energy, Inc.. Stock Overvalued? NRG Valuation Analysis 2026
Based on fundamental analysis, Nrg Energy, Inc.. shows some fundamental concerns relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nrg Energy, Inc.. Balance Sheet: NRG Debt, Cash & Liquidity
NRG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nrg Energy, Inc..'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.12 indicates the company is currently unprofitable.
NRG Revenue Growth, EPS Growth & YoY Performance
NRG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $8.5B | $125.0M | $0.52 |
| Q3 2025 | $7.1B | $152.0M | $0.69 |
| Q2 2025 | $6.5B | -$104.0M | $-0.62 |
| Q1 2025 | $7.4B | $511.0M | $2.31 |
| Q3 2024 | $7.1B | $343.0M | $1.41 |
| Q2 2024 | $6.2B | $308.0M | $1.25 |
| Q1 2024 | $7.4B | $511.0M | $2.31 |
| Q3 2023 | $7.9B | $67.0M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nrg Energy, Inc.. Dividends, Buybacks & Capital Allocation
NRG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nrg Energy, Inc.. (CIK: 0001013871)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NRG
What is the AI rating for NRG?
Nrg Energy, Inc.. (NRG) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NRG's key strengths?
Claude: Positive net income growth of 8.4% year-over-year showing operational improvement trajectory. Large established asset base ($40.1B) and scale in essential infrastructure sector. ChatGPT: Positive YoY revenue and net income growth indicate underlying earnings stability. Operating cash flow remains solid and supports positive free cash flow after capital spending.
What are the risks of investing in NRG?
Claude: Negative operating cash flow (-$169M) indicates core business is not generating operating cash; unsustainable long-term. Critical liquidity crisis indicators: current ratio 0.84x and quick ratio 0.78x both below 1.0, threatening ability to meet short-term obligations. ChatGPT: Debt load is heavy, with very high debt-to-equity and a thin equity cushion. Profit margins are narrow, limiting flexibility if costs rise or demand weakens.
What is NRG's revenue and growth?
Nrg Energy, Inc.. reported revenue of $10.3B.
Does NRG pay dividends?
Nrg Energy, Inc.. pays dividends, with $411.0M distributed to shareholders in the trailing twelve months.
Where can I find NRG SEC filings?
Official SEC filings for Nrg Energy, Inc.. (CIK: 0001013871) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NRG's EPS?
Nrg Energy, Inc.. has a diluted EPS of $0.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NRG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Nrg Energy, Inc.. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NRG stock overvalued or undervalued?
Valuation metrics for NRG: ROE of 2.6% (sector avg: 10%), net margin of 1.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is NRG's AI grade for 2026?
Our dual AI analysis gives Nrg Energy, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NRG's free cash flow?
Nrg Energy, Inc..'s operating cash flow is $-169.0M, with capital expenditures of $317.0M. FCF margin is -4.7%.
How does NRG compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 1.2% (avg: 12%), ROE 2.6% (avg: 10%), current ratio 0.84 (avg: 0.8).
Is Nrg Energy, Inc.. carrying too much debt?
NRG has a debt-to-equity ratio of 4.76x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.