# NRG Energy, Inc. (NRG) — Stock CV

NRG Energy, Inc. is a $22.7B utility company. Revenue grew 12.8% over the last year, it keeps 2¢ of every dollar of sales as profit, and its net debt equals ~33.7 years of free cash flow. It trades at 26.7× earnings — in the most expensive third of its own history.

> NRG Energy is one of the largest retail energy providers in the US, with 6 million customers. Vivint Smart Home, which NRG acquired in 2023, has 2 million home-services customers.

## Identity

- **Ticker**: NRG
- **Sector**: Utilities
- **Industry**: Electric Services
- **Headquarters**: HOUSTON, TX
- **Employees**: 16 702
- **Website**: https://www.nrg.com
- **Market cap**: $22.7B
- **Last price**: $107.97
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $33.1B
- **Net income**: $782M
- **Free cash flow**: $348M
- **Net debt**: $11.7B
- **P/E**: 26.7
- **Revenue growth (YoY)**: 12.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 42 |
| Growth | 51 |
| Profitability | 41 |
| Health | 21 |
| Quality | 47 |
| Moat | 23 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [x] Revenue growing — +12.8% YoY
- [x] Profitable — $782M TTM
- [ ] Profit growing — -5.7% YoY
- [x] Generates cash — $348M TTM
- [ ] Debt under control — ~33.7y of cash flow to repay
- [x] Established company — $22.7B market cap
- [x] Not printing shares — -19.1% shares over ~5y
- [x] Proven track record — 8/10 profitable years
- [ ] Financially stable — health score 16/100
- [x] Pays a dividend — yield 1.93%
- [x] Valuation not extreme — P/E 26.7

## Experience (career milestones)

- **2020** — NRG Energy and Centrica entered an agreement under which NRG would acquire Direct Energy for $3.625…
- **FY2019** — Best year on record: $4.44B net income
- **2018** — NRG acquired XOOM Energy, a mainly residential-focused, retail energy supplier with 300,000 RCE…
- **2018** — NRG Energy no longer owned SpaceTag as Station A became a standalone company
- **FY2017** — Revenue crossed $10B: $10.6B for the year
- **FY2016** — First recorded profitable year: $81.0M net income
- **FY2016** — Revenue already above $1B: $1.86B in first reported year
- **2014** — NRG Energy acquired Roof Diagnostics Solar (RDS), a residential solar power installation company, for…
- **2013** — NRG acquired Energy Curtailment Specialists, a Buffalo, New York-based Demand response company
- **2012** — NRG Energy completed its acquisition of GenOn Energy in December 2012 for $1.7 billion in stock and cash
- **2010** — Following the acquisition of Reliant, NRG extended its retail footprint with the acquisition of Green Mountain…
- **2009** — Afterwards, in May 2009, NRG Energy acquired the retail operations of Reliant Energy
- **2006** — NRG Energy bought Texas Genco from a group of private equity firms for roughly $5.9 billion
- **2000** — It was formerly the wholesale arm of Northern States Power Company (NSP)

## Strengths

- Revenue growing 12.8% year over year

## Watch-outs

- Loss-making in 2 of the recent years
- Net debt equals ~33.7 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $27.0B | $2.19B | $224M |
| FY2022 | $31.5B | $1.22B | -$7.00M |
| FY2023 | $28.8B | -$256M | -$819M |
| FY2024 | $28.1B | $1.06B | $1.83B |
| FY2025 | $30.7B | $797M | $766M |

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Source: https://stockcv.com/NRG — derived from company filings; may be delayed or incomplete. Information, not investment advice.