NRG Energy, Inc. (NRG): a likely value trap?

Avoid — cheap only on forward guesswork; today's business is loaded with acquisition debt and missing profit targets already.

⚠ TRAP Fundamentals47/100

Down 28% from its all-time high of $179.18 — now $129.11

Why NRG dropped

NRG just closed a huge $12 billion debt-and-stock-funded acquisition of gas plants from LS Power in January 2026, and its Q1 2026 results badly missed profit estimates on mild Texas weather and higher costs, even though the company reaffirmed its full-year guidance; shares are down about 28% from February's all-time high largely on disappointment that data-center power deals aren't materializing as fast as hoped, plus a jump in debt from the acquisition.

Fwd P/E 11.2Op margin 3.6%Rev growth 19.5%Debt/equity 479.2%Analyst upside 53.6%

How this scored 47/100 ❌ fails 2 hard checks

❌ Fails 2 hard checks — these are pass/fail and override the score entirely.

✅ Makes money Net profit margin 0.7%

✅ Generates cash Free cash flow $432M

❌ Not drowning in debt too much debt (479% of equity)

❌ Can pay its bills can't cover 12 months of bills (current ratio 0.84)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 2/25

Operating margin 3.6% 1/9

Net profit margin 0.7% 0/8

Return on equity 6.2% 0/8

Growth Is it getting bigger, or dying? 15/25

Revenue growth 19.5% 7/9

Earnings growth -85.6% 0/8

Expected profit change 1176.3% 8/8

Value Is it cheap right now? 23/25

Forward P/E 11.2 9/10

PEG ratio 0.6 8/8

Analyst target upside 53.6% 6/7

Balance sheet Will it survive? 7/25

Debt / equity 479.2% 0/10

Current ratio 0.8 0/8

Free cash flow $432M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-20. Research only — not financial advice.