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Vistra Energy (VST)
NYSE:VST
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Vistra Energy (VST) AI Stock Analysis

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VST

Vistra Energy

(NYSE:VST)

Rating:73Outperform
Price Target:
$211.00
â–²(11.21% Upside)
Vistra Energy's strong financial performance and positive earnings call are the most significant factors contributing to its score. However, technical indicators suggest bearish momentum, and the stock's valuation appears high, which tempers the overall score.
Positive Factors
Acquisition
The acquisition is expected to have a positive reaction given the favorable deal terms.
Earnings
The company's 2Q25 EBITDA exceeded consensus estimates, showing stronger than expected financial performance.
Financial Performance
Vistra Energy is expected to generate significant extra cash through 2027, providing flexibility for capital allocation.
Negative Factors
Cost Management
Operation & maintenance costs were up for the whole business and generation was lower, which slightly offset the benefits from higher realized prices.
Operational Challenges
Earnings in Texas face headwinds from unplanned and planned outages as well as higher gas costs.
Weather Impact
The retail segment was down due to weather, and the West segment faced headwinds with the Moss Landing outage.

Vistra Energy (VST) vs. SPDR S&P 500 ETF (SPY)

Vistra Energy Business Overview & Revenue Model

Company DescriptionVistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across 20 states in the United States and the District of Columbia. The company is also involved in the electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. It serves approximately 4.3 million customers with a generation capacity of approximately 38,700 megawatts with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in July 2020. Vistra Corp. was founded in 1882 and is based in Irving, Texas.
How the Company Makes MoneyVistra Energy generates revenue primarily through its power generation segment by selling electricity to wholesale markets and directly to retail customers. The company participates in both the regulated and unregulated markets, allowing it to capitalize on fluctuating energy prices. Key revenue streams include electricity sales from its portfolio of power plants, which benefit from a mix of long-term power purchase agreements and spot market sales. Furthermore, Vistra's retail segment contributes significantly to its earnings through the sale of electricity and gas to consumers, often bundled with customer service and energy management solutions. Strategic partnerships with other energy providers and participation in various market initiatives also enhance its revenue potential, while its focus on renewable energy investments aligns with the growing demand for sustainable energy solutions.

Vistra Energy Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call indicates strong financial performance and growth prospects, supported by strategic acquisitions and operational successes. However, some challenges exist with unplanned outages and potential regulatory issues.
Q2-2025 Updates
Positive Updates
Record Adjusted EBITDA
Achieved adjusted EBITDA of $1.349 billion for the quarter, demonstrating consistent execution across generation, commercial, and retail sectors.
Positive Growth Outlook
Reaffirming 2025 adjusted EBITDA guidance of $5.5 billion to $6.1 billion and adjusted free cash flow before growth of $3 billion to $3.6 billion.
Strategic Acquisition
Plans to acquire 7 modern natural gas facilities from Lotus Infrastructure Partners, totaling 2,600 MW, enhancing the fleet's capabilities.
Strong Retail Performance
Retail segment achieved strong customer count and margin performance, expected to outperform 2024 results.
Increased Free Cash Flow Conversion
Increasing targeted conversion rate of adjusted free cash flow before growth to adjusted EBITDA to at or above 60% starting in 2026.
Successful Relicensing
Successfully relicensed Perry Nuclear Power Plant through 2046, supporting long-term operational goals.
Share Repurchasing
Reduced shares outstanding by approximately 30% since 2021, increasing dividend per share by 50%.
Negative Updates
Unplanned Outages
Ongoing unplanned outages at Martin Lake Unit 1 and Moss Landing battery facilities, impacting generation capacity.
Potential Regulatory Challenges
Navigating new regulatory processes related to SB 6 in Texas, which may affect large load growth and grid reliability projects.
Company Guidance
During Vistra's Second Quarter 2025 Earnings Conference Call, the company reaffirmed its guidance for 2025, projecting an adjusted EBITDA range of $5.5 billion to $6.1 billion and adjusted free cash flow before growth between $3 billion and $3.6 billion. The company reported an adjusted EBITDA of $1.349 billion for the quarter. Vistra also highlighted its plans to acquire seven modern natural gas facilities from Lotus Infrastructure Partners, with a combined capacity of approximately 2,600 megawatts, and announced an increase in its 2026 adjusted EBITDA midpoint opportunity to at least $6.8 billion. The company remains committed to its strategic priorities, emphasizing its integrated business model and comprehensive hedging program, which provide increased earnings visibility and downside protection. Vistra is also focused on capital allocation, with plans to return approximately $1.8 billion to shareholders through share repurchases and dividends by the end of 2026, while maintaining a strong balance sheet to achieve investment-grade ratings.

Vistra Energy Financial Statement Overview

Summary
Vistra Energy presents a robust financial profile with strong revenue growth and profitability improvement over recent years. The company has managed to strengthen its operating margins while maintaining healthy cash flows. Although leverage remains high, improving returns on equity and positive cash flow trends suggest effective financial management.
Income Statement
85
Very Positive
Vistra Energy shows strong revenue growth from 2020 to TTM with a Revenue Growth Rate of 3.62% from 2024 to TTM. The gross profit margin has been stable, with TTM at 41.31%. Net profit margin has improved significantly from negative figures in 2021 and 2022 to 13.40% in TTM, indicating better profitability. EBIT and EBITDA margins have also shown positive trends, supporting operational efficiency.
Balance Sheet
75
Positive
The company's balance sheet reflects a moderate Debt-to-Equity Ratio of 3.67 in TTM, highlighting significant leverage but improving from previous years. The Equity Ratio of 12.62% in TTM suggests a relatively low proportion of equity financing. However, the Return on Equity has improved significantly to 50.27% in TTM, indicating strong returns on equity investment.
Cash Flow
80
Positive
Vistra Energy demonstrates strong cash flow health with positive free cash flow and an improving Free Cash Flow to Net Income Ratio of 1.02 in TTM. The Operating Cash Flow to Net Income Ratio of 2.00 suggests solid cash generation from operations relative to net income. Free Cash Flow Growth Rate from 2023 to 2024 is slightly negative but remains positive over the larger period.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.75B19.38B15.54B17.84B13.33B11.06B
Gross Profit9.10B7.69B5.17B3.81B60.00M2.50B
EBITDA7.02B7.19B4.62B1.29B852.00M3.16B
Net Income2.43B2.66B1.49B-1.23B-1.27B636.00M
Balance Sheet
Total Assets38.23B37.77B32.97B32.79B29.68B25.21B
Cash, Cash Equivalents and Short-Term Investments561.00M1.19B3.48B455.00M1.32B406.00M
Total Debt17.68B17.36B14.68B13.34B11.01B9.88B
Total Liabilities33.39B32.19B27.64B27.87B21.39B16.85B
Stockholders Equity4.83B5.57B5.31B4.90B8.29B8.37B
Cash Flow
Free Cash Flow2.47B2.48B3.78B-816.00M-1.24B2.08B
Operating Cash Flow4.85B4.56B5.45B485.00M-206.00M3.34B
Investing Cash Flow-2.81B-5.28B-2.15B-1.24B-1.15B-1.57B
Financing Cash Flow-2.56B-1.60B-294.00M-80.00M2.27B-1.80B

Vistra Energy Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price189.73
Price Trends
50DMA
195.48
Negative
100DMA
172.86
Positive
200DMA
159.23
Positive
Market Momentum
MACD
-2.02
Positive
RSI
44.96
Neutral
STOCH
30.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VST, the sentiment is Neutral. The current price of 189.73 is below the 20-day moving average (MA) of 195.89, below the 50-day MA of 195.48, and above the 200-day MA of 159.23, indicating a neutral trend. The MACD of -2.02 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VST.

Vistra Energy Risk Analysis

Vistra Energy disclosed 47 risk factors in its most recent earnings report. Vistra Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Vistra Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$50.47B20.439.29%4.54%7.60%55.99%
74
Outperform
$58.88B16.1313.03%3.42%5.84%36.33%
73
Outperform
$62.96B29.4845.85%0.47%46.90%388.66%
71
Outperform
$67.36B17.298.31%4.46%-6.02%7.24%
71
Outperform
$54.08B20.078.87%3.08%0.46%-11.77%
66
Neutral
$17.25B17.875.54%3.65%6.63%11.55%
58
Neutral
$28.07B61.4117.66%1.17%2.09%-74.13%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VST
Vistra Energy
189.73
116.54
159.23%
AEP
American Electric Power
108.64
10.21
10.37%
D
Dominion Energy
58.79
3.65
6.62%
NGG
National Grid Transco
68.92
4.25
6.57%
NRG
NRG Energy
147.95
72.62
96.40%
SRE
Sempra Energy
82.12
2.61
3.28%

Vistra Energy Corporate Events

Business Operations and Strategy
Vistra Energy Announces PJM Auction Results
Neutral
Jul 23, 2025

On July 22, 2025, Vistra Corp. announced its results from the PJM Capacity Auction for the 2026/2027 planning year, clearing approximately 10,314 megawatts at a weighted average price of $329.17 per megawatt-day. This outcome underscores Vistra’s significant presence in the energy market and its strategic positioning to meet future energy demands, potentially impacting its operational capabilities and market influence.

Private Placements and FinancingBusiness Operations and Strategy
Vistra Energy Amends Receivables Agreement for Financial Flexibility
Positive
Jul 16, 2025

On July 11, 2025, Vistra Corp.’s subsidiaries, TXU Energy Retail and Vistra Operations, amended their Receivables Purchase Agreement, increasing the commitment from $1.0 billion to $1.1 billion and extending its term to July 10, 2026. Additionally, they extended the Master Framework Agreement with MUFG Bank, Ltd., also until July 10, 2026, indicating a strategic move to enhance financial flexibility and stability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 30, 2025