NRGCAUTIOUS

NRG Return on Equity (ROE) Analysis

23.8%

Updated 105h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity; NRG’s 23.8% means it earns $0.238 per $1 of equity.

Sector Performance

76th percentile

NRG

23.8%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

6.2%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity; NRG’s 23.8% means it earns $0.238 per $1 of equity.

That sits above the sector median of 13.4%, putting NRG in the 75th percentile of sector peers. The trend data are incomplete: the 8-quarter trend direction is N/A, year-over-year change is N/A, and the quarter-over-quarter change is +283.9%, based on the two most recent ROE values of 6.2% and 23.8%. The high current level signals strong efficiency relative to peers, but the massive QoQ jump from a much lower base raises uncertainty about whether it will persist. This metric supports the overall CAUTIOUS verdict because the elevated ROE is recent and lacks a longer track record to confirm stability.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NRG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NRG's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.