NRG Energy, Inc. — Earnings Quality Grade F
NRG · Utilities
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 48 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 9.2%, CFFO -17.0%. Cash follows revenue
Expense Quality
Inventory -3.6% vs COGS 12.0%. Normal
CapEx growth 134.3% is >2x revenue growth 9.2%
SG&A/Gross Profit = 43.7%. Normal
Gross margin 19.4%, change -2.1pp. Stable
Cash Flow Quality
CFFO/NI = 2.21. Profits backed by cash
FCF $0.8B, FCF/NI = 0.89
Accruals ratio = -3.6%. Low accruals
Cash $4.7B covers only 28% of debt $16.6B
Balance Sheet Health
Goodwill+Intangibles $7.3B = 436% of equity. Over 50%
Debt/EBITDA = 5.1x (>4x). Financial stress
Other assets grew 29.1% vs revenue 9.2%
Write-offs up 457% YoY
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -7% YoY. Normal
Manipulation Score
M-Score = -2.48 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10