Rating Vistra Against Independent Power Producer and Renewable Energy Competitors – Vistra (NYSE:VST)

In today’s rapidly changing and highly competitive business world, it is imperative that investors and industry observers carefully evaluate companies before making investment decisions. In this article, we will make a comprehensive comparison and assessment of the industry Vistra (NYSE:VST) in relation to key competitors from the Independent Power Producers and Renewable Energy industry. Through detailed analysis of important financial metrics, market position and growth potential, we aim to provide valuable insights and highlight a company’s performance in the industry.

Vistra background

Vistra Energy is one of the largest energy producers and retail energy suppliers in the United States. After acquiring Energy Harbor in 2024, Vistra owns 41 gigawatts of nuclear, coal, natural gas and solar power plants and has one of the largest utility-scale battery projects in the world. Its retail electricity business serves 5 million customers in 20 states, including nearly one-third of all electricity consumers in Texas. Vistra emerged from the bankruptcy of Energy Future Holdings as a standalone entity in 2016. In 2018, it acquired Dynegy.

Business	P/E	P/B	P/S	ROE	EBITDA (in billions)	Gross profit (in billions)	Revenue increase
Vistra company	58.98	10.50	2.62	-2.79%	$0.75	$0.84	-30.98%
AES company	28/16	5/04	1/17	18.99%	$0.95	$0.62	-4.75%
Central Puerto SA	7.31	0.97	3.70	2.24%	$105.37	$55.89	21.92%
Average	17.73	3.0	2.44	10.61%	$53.16	$28.25	8.59%

After a thorough analysis of Vistra, we can see the following trends:

• It is worth noting that the current price-to-earnings ratio for this stock, 58.98Is 3.33x above the industry norm, reflecting a higher valuation relative to the industry.

• Increased price-to-book ratio of 10.5 compared to the industry average according to 3.5x suggests that the company’s valuation may be overstated based on its book value.

• The stock has a relatively high price to sales ratio 2.62exceeding the industry average by 1.07xmay indicate an aspect of overstatement in terms of sales results.

• Return on equity (ROE). -2.79% Is 13.4% below the industry average, suggesting potential inefficiency in using equity capital to generate profits.

• The company’s earnings before interest, taxes, depreciation and amortization (EBITDA). $750 million Is 0.01x below the industry average, suggesting potential lower profitability or financial challenges.

• The company has a lower gross profit by $840 millionWhich indicates 0.03x below the industry average. This potentially means lower revenues after accounting for production costs.

• Increase in the company’s revenues -30.98% is well below the industry average 8.59%. This suggests potential difficulty in generating increased sales volume.

Debt to equity ratio

The debt-to-equity ratio (D/E) indicates the proportion of debt and equity used by a company to finance its assets and operations.

Including the debt-to-equity ratio in industry comparisons allows for a concise assessment of a company’s financial health and risk profile, helping you make informed decisions.

In terms of debt to equity ratio, Vistra compares to its 4 largest competitors, which leads to the following comparisons:

• In terms of debt to equity ratio, Vistra ranks in the middle of its top 4 competitors.

• This suggests a relatively balanced financial structure in which the company maintains a moderate level of debt while using equity financing with a debt-to-equity ratio of 5.16.

Key takeaways

In the case of Vistra, which operates in the independent power producers and renewable energy industry, high PE, PB and PS ratios suggest that the company is relatively overvalued compared to its competitors. Additionally, low ROE, EBITDA, gross profit and revenue growth indicate weaker financial results and growth potential compared to industry competitors.

This story was generated by Benzinga’s automated content engine and reviewed by an editor.