NRG Energy (FRA:NRA) Gross Margin % : 6.49% (As of Dec. 2023)

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What is NRG Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NRG Energy's Gross Profit for the three months ended in Dec. 2023 was €405 Mil. NRG Energy's Revenue for the three months ended in Dec. 2023 was €6,242 Mil. Therefore, NRG Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 6.49%.

Warning Sign:

NRG Energy Inc gross margin has been in long-term decline. The average rate of decline per year is -20.2%.

The historical rank and industry rank for NRG Energy's Gross Margin % or its related term are showing as below:

FRA:NRA' s Gross Margin % Range Over the Past 10 Years
Min: 7.97 Med: 25.06 Max: 28.08
Current: 7.97

During the past 13 years, the highest Gross Margin % of NRG Energy was 28.08%. The lowest was 7.97%. And the median was 25.06%.

FRA:NRA's Gross Margin % is ranked worse than
91.09% of 393 companies
in the Utilities - Independent Power Producers industry
Industry Median: 34.68 vs FRA:NRA: 7.97

NRG Energy had a gross margin of 6.49% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NRG Energy was -20.20% per year.

NRG Energy Gross Margin % Historical Data

The historical data trend for NRG Energy's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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NRG Energy Gross Margin % Chart

NRG Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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25.64

28.08

24.11

12.99

7.97

NRG Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															-12.37	-13.68	21.83	19.19	6.49

Competitive Comparison of NRG Energy's Gross Margin %

For the Utilities - Independent Power Producers subindustry, NRG Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

NRG Energy's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, NRG Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where NRG Energy's Gross Margin % falls into.

NRG Energy Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

NRG Energy's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2106.3	/	26430.691
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(26430.691 - 24324.342)	/	26430.691
	=	7.97 %

NRG Energy's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	405.3	/	6242.019
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6242.019 - 5836.705)	/	6242.019
	=	6.49 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

NRG Energy (FRA:NRA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

NRG Energy had a gross margin of 6.49% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

NRG Energy Gross Margin % Related Terms

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NRG Energy (FRA:NRA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » NRG Energy Inc (FRA:NRA) » Definitions » Gross Margin %

Traded in Other Exchanges

NRG:USA NRA:Germany N1RG34:Brazil

Address

910 Louisiana Street, Houston, TX, USA, 77002

Website

https://www.nrg.com

NRG Energy is one of the largest retail energy providers in the U.S., with 5.5 million customers. Its 2023 acquisition of Vivint Smart Home adds 1.9 million home services customers. NRG also is one of the largest U.S. independent power producers, with 13 gigawatts of coal, gas, and oil power generation capacity primarily in Texas. NRG exited Chapter 11 bankruptcy as a stand-alone entity in December 2003.

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