NRGCAUTIOUS

Return on Equity (ROE)

6.2%

Updated 78h ago

Sector Performance

24th percentile

NRG

6.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — a 6.2% ROE means NRG earned $0.062 for every $1 of equity.

That figure sits well below the sector median of 13.7%, placing NRG in the 24th percentile among its peers, indicating weaker profitability relative to the industry. No trend data is available: year-over-year and quarter-over-quarter changes are both listed as N/A, and only a single historical value (6.2%) exists, so no direction can be assessed. The combination of a low ROE level with no observable trend suggests a lack of momentum or clarity in earnings efficiency, which elevates risk for investors seeking consistent returns. This metric directly supports the overall CAUTIOUS verdict, as the current return is far below the sector norm and provides no evidence of improvement.

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: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.