NYSE:NRG
$22.00
(2/9 2:37PM)
+1.9%
| Open | $21.86 |
Mkt Cap | $5.5 Billion |
| High | $22.27 |
52Wk High | $29.26 |
| Low | $21.74 |
52Wk Low | $15.19 |
| Volume | 2.8 Million |
Avg Vol 10D | 10.5 Million |
Ockham's Rating/Recommendation Summary
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NRG Revenue
As a value investing shop, we are interested in seeing how NRG's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 7 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.40x and the low end of the range at 0.72x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for NRG of 0.66x is well below its normal historic Price to Sales levels. At a price of $21.71, NRG is 38% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
NRG Cash Earnings
Looking at NRG specifically in their Cash Earnings capabilities, Ockham views NRG as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for NRG, the current level of Cash Earnings compared to its historical levels helps identify where NRG is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 7.61 and a historical low Cash Earnings per share ratio of 4.04, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for NRG? From the Ockham perspective, we are looking specifically at NRG to see if the market is recognizing the huge disparity between NRG's past stock price to Cash Earnings ratio to today's levels. At a difference of 49% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at NRG. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
NRG Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for NRG to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. Although they may currently pay a dividend, our data source has no historical record of it for NRG. Since we cannot apply our historical trend analysis to dividends for NRG we have a neutral score for the dividend portion of our analysis.
Earnings Discussion for NRG Energy, Inc. on Fast Money
Any suprise in earnings can cause a major swing in stock prices, so we are always on the lookout for the freshest news available for earnings reports or expectations.
Based on our methodology, NRG Energy, Inc. should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; NRG has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Production, when you see electricity production rise, obviously the earnings potential increases for the names and potentially the independent look at the name like NRG ENERGY, ... …”
Interested in NRG? See What the Pundits Said on Closing Bell
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to NRG Energy, Inc..
At present, Ockham has a valuation stance of Undervalued on NRG, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, NRG Energy, Inc. has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Utility NRG ENERGY downgraded to neutral. $26 from $33 on the stock. Telling clients nrg will be hurt by lower natural gas prices, down 20% over the last year. …”
Squawk Box Has News on NRG
NRG Energy, Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk Box.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, NRG Energy, Inc. has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on NRG, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… It reesed stakes in conco phillips, NRG ENERGY, moody's, suntrust bank and wellpoint. George soros reported holdings in webco. What are you laughing at? > > …”
See Who is Talking About News from NRG on Closing Bell
The latest news on Closing Bell in regards to NRG came through on RazorWire recently.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, NRG Energy, Inc. has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on NRG, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… NRG ENERGY, that company he cut by 1. 2 million shares. NRG ENERGY is reduced. A new holding, neste, up to 3. 4 million shares, worth $144 that's in addition to the berkshire-ha... …”
NRG Energy, Inc. (NRG) Discussed on Fox Business's Countdown to the Closing Bell
NRG Energy, Inc. is in the news. Find out how this impacts NRG trading on Ockham Research.
Everybody is watching. Caterpillar was upgraded ahead of earnings. More from texas instruments. Earnings, earnings, earnings. NRG ENERGY has shareholder meeting tomorrow and probably put the kabosh or take-over bid on exelon. >> cheryl: robert gray? Steve taking the wind out of
“… taking the wind out of …”
NRG Energy, Inc. (NRG) Discussed on CNBC's Squawk On The Street
NRG Energy, Inc. is in the news. Find out how this impacts NRG trading on Ockham Research.
We've got big banks. General electric this week. >>> of course, david faber's turn at bat. He has an exclusive for us this the ceo of NRG ENERGY. The first ber view since they rejected exlon's take over bid. The word on the street and the buzz behind the trading as investors position themselves onslaught that's coming.
“… trading as investors position themselves onslaught that's coming. …”
NRG Energy, Inc. (NRG) Discussed on CNBC's Squawk Box
NRG Energy, Inc. is in the news. Find out how this impacts NRG trading on Ockham Research.
Would he bounding a little bit after six straight sessions down@` in the past few days. $61.29 on the august contract, up $1.15. Insure NRG ENERGY rejecting exelon's improved takeover off after it was upped by 12% last joining us is exelon ceo john roe. It's great to have you on the
“… t's great to have you on the …”
NRG Energy, Inc. (NRG) Discussed on CNBC's Closing Bell
NRG Energy, Inc. is in the news. Find out how this impacts NRG trading on Ockham Research.
Wall street has been viewing the drug candidate as amgen's next big potential blockbuster. And take a look at how those shares are trading as a result, up 13%. Power producer NRG ENERGY rejecting a takeover offer from rival excelon worth $7 billion they say the sweetened offer still undervalues the company. The move likely sets up a
“… ay the sweetened offer still undervalues the company. The move likely sets up a …”
NRG Energy, Inc. (NRG) Discussed on Fox Business's Countdown to the Closing Bell
NRG Energy, Inc. is in the news. Find out how this impacts NRG trading on Ockham Research.
Their asian exposier is setting them up good. Stock up 4%. >> number five, NRG ENERGY stock the board said we are going at it alone for now. Up almost 5%. >> number five, whole foods. Believe it or not one of the s&p leaders today.
“… Their asian exposier is setting them up good. Stock up 4%. >> number five, NRG ENERGY stock the board said we are going at it alone for now. Up almost 5%. >> number five, whole foods. Believe it or not one of the s&p leaders today. …”
NRG Energy, Inc. (NRG) Discussed on CNBC's Squawk Box
NRG Energy, Inc. is in the news. Find out how this impacts NRG trading on Ockham Research.
NRG ENERGY purchased by exelon and that stock's indicated hire. Continental was equalweight with a $12 price target by stanley.
“… NRG ENERGY purchased by exelon and that stock's indicated hire. Continental was equalweight with a $12 price target by stanley. …”