NRG FCF Yield Analysis
Updated 105h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 3.0% means a company generates free cash flow (the cash left after operating expenses and capital spending) equal to 3.0% of its market value each year.
Sector Performance
39th percentileNRG
3.3%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
3.0%(Aug 2026)
Deep Analysis
The current FCF Yield of 3.0% means a company generates free cash flow (the cash left after operating expenses and capital spending) equal to 3.0% of its market value each year.
This yield sits below the sector median of 4.2%, placing NRG in the 35th percentile among peers, so most similar companies offer a higher cash return. The metric has been increasing over the last eight quarters, but the latest quarter shows a 3.2% decline from the prior three months, while year-over-year data is not available. A rising trend from 2.6% to 3.0% over recent quarters suggests improving cash generation, yet the current level remains below the typical sector return. That combination—moderate yield with recent upward momentum—implies limited near-term risk but also no clear cash-flow advantage over peers. This metric does not contradict the overall CAUTIOUS verdict; it supports caution because NRG’s cash return is weaker than the sector norm, even if improving.
Frequently Asked Questions
What does the FCF Yield tell investors about NRG?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are NRG's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master NRG's Valuation
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3.3%
Sector Median
4.2%
Sector Avg
9.2%
How NRG's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.