Skip to Content
Morningstar
Get 14 Days Free

NRG Energy Inc NRG

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

NRG Energy Escapes Winter Storm Uri Mostly Unscathed

Travis Miller Strategist

Analyst Note

| Travis Miller |

We are reaffirming our $35 fair value estimate for NRG Energy after incorporating 2020 results in line with our expectations and no material impact from the Texas winter storm in mid-February. We are reaffirming our no-moat and stable moat trend ratings.

Read Full Analysis

Company Profile

Business Description

NRG Energy is one of the largest U.S. independent power producers, with 22 gigawatts of nuclear, coal, gas, and oil power generation capacity primarily in Texas and the eastern United States. NRG also is one of the largest retail energy providers in the U.S., with 7 million customers, including its 2021 acquisition of Direct Energy. In 2018, NRG divested its 47% stake in NRG Yield, among other renewable energy and conventional generation investments. NRG exited Chapter 11 bankruptcy as a stand-alone entity in December 2003.

Contact
804 Carnegie Center
Princeton, NJ, 08540
T +1 609 524-4500
Sector Utilities
Industry Utilities - Independent Power Producers
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 4,104

Related

Stock Strategist Industry Reports
Electricity Demand's COVID Comeback
Utilities should benefit as the U.S. economy electrifies.
Travis Miller
Market Update
How the Upcoming Election Will Shape Regulation
A look at utilities, energy, and the budding cannabis industry in a continuation of the Trump presidency or a new Biden administration.
David Sekera
Stock Analyst Update
Buying Opportunity Amid Long-Awaited Utilities Sell-Off
The sector is 7% undervalued based on Morningstar's fair value estimates.
Travis Miller
Stock Strategist Industry Reports
The Renewable Future
Utilities winners and losers as the U.S. goes green.
Travis Miller
Commentary
Value Investing: A Deep Dive Into Performance
In part one of our three-part special report, we examine why value has underperformed growth so dramatically in recent years.
Tom Lauricella
Quarter-End Insights
Utilities: Valuations Still Running Out of Control
Even the outlook for tightening monetary policies worldwide can't stop utilities from reaching near-record valuations.
Travis Miller
US Videos
Calpine Could Benefit if Nuclear Subsidies Are Struck Down
We think independent power producers could benefit if subsidies to keep nuclear power plants open are scrapped by the courts.
Travis Miller
US Videos
Challenges, Opportunities for Utilities Under Trump
While rising interest rates may threaten utility valuations, we think gas and power prices will stay low and renewable energy growth will continue.
Andrew Bischof
Stock Strategist
NRG Continues Strategic Shift
It's paying down debt and moving away from renewable energy.
Travis Miller
Stock Strategist
Utilities' Dividends Still Attractive, but Headwinds Remain
Even though the utilities sector appears fairly valued, there are pockets of opportunities and potential pitfalls that investors must watch carefully in the coming months.
Travis Miller
US Videos
3 High-Risk/High-Reward Utilities
We think less-traditional utility names Calpine, NRG Energy, and Dynegy could have 20% or more upside, but with very high uncertainty, they're not for the faint-hearted.
Travis Miller
Quarter-End Insights
Utilities: Low Rates Keep the Sector's Lovefest Raging
Only the Fed could break up utilities' M&A party.
Travis Miller
Quarter-End Insights
Utilities: Starting to Look Attractive After a Woeful 2015 Start
Utilities' 4% dividend yields still look attractive even with the chance for rising interest rates.
Travis Miller
Commentary
High-Quality Opportunities Light Up in Utilities Sector
Utilities' sharp drop since January has created buying opportunities among some quality names with long dividend-growth histories, strong balance sheets, and attractive growth prospects.
Andrew Bischof
US Videos
High-Quality Opportunities Light Up in Utilities Sector
Utilities' sharp drop since January has created buying opportunities among some quality names with long dividend-growth histories, strong balance sheets, and attractive growth prospects.
Andrew Bischof
Quarter-End Insights
Utilities: Bloody February Brings Valuations Back In Line
We don't see an end to this atypical volatility until interest rates rise back toward historical norms.
Travis Miller
Quarter-End Insights
Utilities: Repeating a Stellar 2014 Performance Will Be Tough
Utilities' 23% total return through mid-December topped all sectors except for M&A-fueled health care.
Travis Miller
Quarter-End Insights
Utilities: Roller-Coaster Ride Continues, but Fundamentals Are Strong
Stock price volatility offers opportunities for investors committed to holding utilities for the long run.
Travis Miller
Quarter-End Insights
Utilities Power Past Fair Value
Some of the most defensive companies in the utilities sector have performed the best this year and could face a sharp drop if interest rates start to creep up.
Travis Miller
Stock Strategist
Spin-Off Should Stabilize This Energy Company's Earnings
We believe PPL is a good candidate at the right price for a core holding in an income portfolio.
Andrew Bischof