NRG EnergyFRA:NRA +2.76%76 Operating Margin % is 3.64% as of Mar. 2026, which is 55% below its 10-year median of 8.10. GuruFocus rates FRA:NRA with a GF Score™ of 76/100 and a GF Value™ of €95.80 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, NRG Energy ranks worse than 68.35% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. NRG Energy's Operating Income for the
three
months ended in Mar. 2026 was €323 Mil. NRG Energy's Revenue for the
three
months ended in Mar. 2026 was €8,871 Mil. Therefore, NRG Energy's Operating Margin % for the quarter that ended in Mar. 2026 was 3.64%.
The historical rank and industry rank for NRG Energy's Operating Margin % or its related term are showing as below:
FRA:NRA'
s Operating Margin % Range Over the Past 10 Years
Min: -3.64 Med: 8.1 Max: 13.82
Current: 3.61
FRA:NRA's Operating Margin % is ranked worse than 68.35% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.27
vs FRA:NRA: 3.61
NRG Energy's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
NRG Energy's Operating Income for the
three
months ended in Mar. 2026 was €323 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €1,001 Mil.
Warning Sign:
NRG Energy Inc has recorded a loss in operating income at least once over the past 3 years.
NRG Energy (FRA:NRA) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
NRG Energy Operating Margin % Related Terms
NRG Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for NRG Energy's Operating 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.
FRA:NRA vs TLN, OKLO, KEN: Operating Margin % Comparison
For the Utilities - Independent Power Producers subindustry, NRG Energy's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, NRG Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NRG Energy's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
NRG Energy's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
NRG Energy (FRA:NRA) has a Operating Margin % of 3.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NRG Energy and its competitors. This is 55% below median its historical median of 8.10. According to the industry distribution chart, NRG Energy ranks #285 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 68.3%.
Is NRG Energy's Operating Margin % too high?
NRG Energy's current Operating Margin % of 3.64% is 55% below median its 10-year median of 8.10. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. NRG Energy's value of 3.64% is 72.6% below this industry median. Based on the distribution chart, NRG Energy ranks #285 out of 417 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, NRG Energy has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NRG Energy's Operating Margin % compare to TLN and OKLO?
According to the Utilities - Independent Power Producers industry distribution chart, NRG Energy ranks #285 out of 417 companies for Operating Margin %. This places NRG Energy in the lower half of its industry. The industry median Operating Margin % is 13.27. NRG Energy's value of 3.64% is 72.6% below this benchmark. While the company's 10-year median is 8.10 vs. the industry median of 13.27, NRG Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NRG Energy's current Operating Margin % of 3.64% is 72.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on NRG Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NRG Energy's current Operating Margin % is 3.64%, which is 55% below median its own 10-year median of 8.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NRG Energy stock overvalued right now?
Based on GuruFocus' analysis, NRG Energy (FRA:NRA) is currently considered Modestly Overvalued. The stock's GF Value™ is €95.80, compared to a current price of €119.00 — trading 24.2% above its estimated fair value. The current Operating Margin % is 3.64%, which is 55% below median its 10-year median of 8.10 and 72.6% below the Utilities - Independent Power Producers industry median of 13.27. NRG Energy's overall GF Score™ is 76/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For NRG Energy (FRA:NRA), the current Operating Margin % is 3.64% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NRG Energy (FRA:NRA) Overvalued in 2026?
Based on GuruFocus' analysis, NRG Energy stock appears to be overvalued.
The current stock price of €119.00 is trading 24.2% above its estimated GF Value™ of €95.80.
GuruFocus considers NRG Energy to be Modestly Overvalued.
Key valuation signals for FRA:NRA:
Operating Margin %: 3.64% (55% below median its 10-year median of 8.10)
GF Value™: €95.80 vs. price of €119.00 (24.2% above fair value)
Industry Position: 72.6% below the Utilities - Independent Power Producers median (#285 of 417)
No single metric tells the full story. See the FRA:NRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NRG Energy is one of the largest retail energy providers in the US, with 6 million customers. Vivint Smart Home, which NRG acquired in 2023, has 2 million home-services customers. NRG also is one of the largest US independent power producers, with 26 gigawatts of coal, gas, and oil power generation capacity in Texas and the Eastern US. NRG exited Chapter 11 bankruptcy as a stand-alone entity in December 2003.
76GF Score
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