NRG ENERGY, INC. (NRG) Stock Analysis

Analysis from 10-Q filed 2025-11-06. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 6.5%. FCF margin -1.1%. D/E 4.8x. Source: 10-Q filed 2025-11-06.

Metric	Value	Context
ROIC	6.5%	Below expectations
FCF Margin	-1.1%	Cash flow pressure
Debt/Equity	4.8x	Elevated debt

ROIC 6.5% — Top 50% of sector peers. FCF margin -1.1% — Bottom 50%.

Explore NRG ENERGY, INC.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NRG: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: NRG ENERGY, INC. earns 6.5% ROIC, Top 50% in Utilities

ROIC TTM 6.5%, sector median 5.4%, Top 50%. DuPont: NOPAT margin 3.3% × asset turnover 1.2x. Gross margin 16.4%. Operating margin 3.2%. Source: 10-Q filed 2025-11-06.

Metric	NRG	Rating	Context
Return on Invested Capital (ROIC)	6.5%	Warning	Above sector median of 5.4%
Return on Equity (ROE)	7.0%	Warning	Moderate equity returns
Gross Margin	16.4%	Warning	Competitive pricing environment
Operating Margin	3.2%	Warning	Moderate operational efficiency

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Cash Flow: NRG ENERGY, INC. generates $-358.0M FCF at -1.1% margin, positive NaN/8 quarters

FCF TTM $-358.0M. FCF margin -1.1%, Bottom 50%. OCF/Net income 5.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-06.

Metric	NRG	Rating	Context
Free Cash Flow Margin	-1.1%	Red flag	Thin cash margins
Free Cash Flow (TTM)	$-358.0M	Red flag	Cash burn
OCF/Net Income	5.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: NRG ENERGY, INC. at 4.8x leverage

Debt/Equity 4.8x. Total debt $23.2B, cash & investments $178.0M. Source: 10-Q filed 2025-11-06.

Metric	NRG	Rating	Context
Debt to Equity	4.8x	Red flag	Elevated leverage
Net Cash Position	$-23.0B	Warning	Net debt position

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Valuation: NRG ENERGY, INC. trades at 167.3x earnings

P/E 167.3x. EV/Sales 1.3x. FCF yield -1.2%. Source: 10-Q filed 2025-11-06.

Metric	NRG	Rating	Context
P/E Ratio	167.3x	Warning	Premium valuation
EV/Sales	1.3x	Excellent	Attractive revenue multiple
FCF Yield	-1.2%	Warning	Lower cash yield

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Capital Allocation: NRG ENERGY, INC. returns 5.1% shareholder yield

Total shareholder yield 5.1% (buyback 5.1%). Capital returned $1.5B TTM. Source: 10-Q filed 2025-11-06.

Metric	NRG	Rating	Context
Total Shareholder Yield	5.1%	Good	Dividend + buyback yield combined
Buyback Yield	5.1%	Good	Active share repurchases
Total Capital Returned (TTM)	$1.5B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	6.5%	Top 50%	1.2x above
Free Cash Flow Margin	-1.1%	Bottom 50%	-
Gross Margin	16.4%	Bottom 25%	0.3x below
Operating Margin	3.2%	Bottom 10%	0.2x below
Return on Equity (ROE)	7.0%	Bottom 50%	0.7x below
P/E Ratio	167.3x	N/A	-

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Financial Scorecard

Metric	NRG	Rating	Sector Context
Return on Invested Capital (ROIC)	6.5%	Warning	Top 50% of sector (median: 5.4%)
Free Cash Flow Margin	-1.1%	Red flag	Bottom 50% of sector (median: 0.0%)
Gross Margin	16.4%	Warning	Bottom 25% of sector (median: 57.0%)
Debt to Equity Ratio	475.1%	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	167.3x	Warning	High expectations priced in
Free Cash Flow Yield	-1.2%	Red flag	Growth-focused valuation

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Frequently Asked Questions

Q: What is NRG ENERGY, INC.'s Return on Invested Capital (ROIC)?

NRG ENERGY, INC. (NRG) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.5%. Sector median 5.4%. Source: 10-Q filed 2025-11-06.

Q: What is NRG ENERGY, INC.'s Free Cash Flow Margin?

NRG ENERGY, INC. (NRG) has a free cash flow margin of -1.1%, generating $-358.0 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-06.

Q: What is NRG ENERGY, INC.'s P/E ratio and how does it compare to peers?

NRG ENERGY, INC. (NRG) trades at a P/E ratio of 167.3x, which is above the sector median of N/A. EV/Sales 1.3x. Source: 10-Q filed 2025-11-06.

Q: How much debt does NRG ENERGY, INC. have?

NRG ENERGY, INC. (NRG) has a debt-to-equity ratio of 4.8x with total debt of $23.2 billion. Net debt $23.0 billion. Source: 10-Q filed 2025-11-06.

Q: What is NRG ENERGY, INC.'s revenue and earnings growth?

NRG ENERGY, INC. (NRG) grew revenue by 10.6% year-over-year. EPS -86.0% YoY. Source: 10-Q filed 2025-11-06.

Q: Is NRG ENERGY, INC. buying back stock?

NRG ENERGY, INC. (NRG) repurchased $1.5 billion of stock over the trailing twelve months. This represents a buyback yield of 5.1%. Source: 10-Q filed 2025-11-06.

Q: How does NRG ENERGY, INC. compare to competitors in Utilities?

Compared to other companies in Utilities, NRG ENERGY, INC. (NRG) shows: ROIC 6.5%, sector median 5.4% (Top 50%). FCF margin -1.1%, sector median 0.0% (Bottom 50%). Gross margin 16.4%, 40.6pp below sector median. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.

Q: What warning signs should I watch for with NRG ENERGY, INC.?

Quantitative warning flags for NRG ENERGY, INC. (NRG): 1) FCF margin -1.1% (below 5%); 2) ROIC declining -7.4% over 8 quarters; 3) debt/equity 4.8x (above 1.5x threshold). Source: 10-Q filed 2025-11-06.

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Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.