Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have watched NRG for the better part of two decades, and in that time it has been at least four different companies: a bankrupt wholesale generator, a clean-energy conglomerate, a Texas retail utility with a smart-home hobby, and now — after the $12 billion LS Power acquisition — a leveraged bet on gas-fired power for AI data centers. A business that reinvents itself every five years is telling you something important: it has never found a durable moat to sit behind. The current management is capable, the free cash flow is genuine, and at 13x adjusted earnings after Monday's 15% decline the stock is not expensive.
Recent filings analysed: 8-K (2026-08-04), 10-Q (2026-08-04), 8-K (2026-07-15), 8-K (2026-05-21).
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