NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NGG • US6362744095
85.07 USD
+0.39 (+0.46%)
At close: Jan 29, 2026
84.82 USD
-0.25 (-0.29%)
Pre-Market: 1/30/2026, 4:51:07 AM
Taking everything into account, NGG scores 5 out of 10 in our fundamental rating. NGG was compared to 26 industry peers in the Multi-Utilities industry. While NGG has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, NGG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year NGG was profitable.
- In the past year NGG had a positive cash flow from operations.
- NGG had positive earnings in each of the past 5 years.
- Each year in the past 5 years NGG had a positive operating cash flow.
1.2 Ratios
- NGG's Return On Assets of 2.77% is amongst the best of the industry. NGG outperforms 80.77% of its industry peers.
- The Return On Equity of NGG (7.72%) is worse than 69.23% of its industry peers.
- NGG has a better Return On Invested Capital (4.11%) than 61.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.72% | ||
| ROIC | 4.11% |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.25%
ROIC(5y)4.02%
1.3 Margins
- NGG has a better Profit Margin (16.43%) than 92.31% of its industry peers.
- NGG's Profit Margin has improved in the last couple of years.
- NGG has a better Operating Margin (29.57%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of NGG has grown nicely.
- Looking at the Gross Margin, with a value of 87.92%, NGG belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- In the last couple of years the Gross Margin of NGG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.57% | ||
| PM (TTM) | 16.43% | ||
| GM | 87.92% |
OM growth 3Y9.26%
OM growth 5Y3.21%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
2. Health
2.1 Basic Checks
- NGG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for NGG has been increased compared to 1 year ago.
- The number of shares outstanding for NGG has been increased compared to 5 years ago.
- The debt/assets ratio for NGG has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that NGG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.42, NGG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- NGG has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
- With an excellent Debt to Equity ratio value of 1.14, NGG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.58
WACC7.08%
2.3 Liquidity
- NGG has a Current Ratio of 0.97. This is a bad value and indicates that NGG is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Current ratio value of 0.97, NGG is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- A Quick Ratio of 0.90 indicates that NGG may have some problems paying its short term obligations.
- With an excellent Quick ratio value of 0.90, NGG belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The earnings per share for NGG have decreased by -7.56% in the last year.
- Measured over the past 5 years, NGG shows a small growth in Earnings Per Share. The EPS has been growing by 7.68% on average per year.
- The Revenue has decreased by -9.52% in the past year.
- The Revenue has been growing slightly by 4.80% on average over the past years.
EPS 1Y (TTM)-7.56%
EPS 3Y9.11%
EPS 5Y7.68%
EPS Q2Q%6.05%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-11.25%
3.2 Future
- NGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.01% yearly.
- The Revenue is expected to grow by 9.11% on average over the next years. This is quite good.
EPS Next Y8.91%
EPS Next 2Y10.77%
EPS Next 3Y9.26%
EPS Next 5Y8.01%
Revenue Next Year-6.7%
Revenue Next 2Y2.06%
Revenue Next 3Y4.14%
Revenue Next 5Y9.11%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.49, NGG is valued correctly.
- 69.23% of the companies in the same industry are more expensive than NGG, based on the Price/Earnings ratio.
- NGG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- The Price/Forward Earnings ratio is 13.74, which indicates a correct valuation of NGG.
- NGG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NGG is cheaper than 69.23% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NGG to the average of the S&P500 Index (25.72), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NGG is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.98 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NGG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)2.15
EPS Next 2Y10.77%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
- NGG has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.77, NGG pays a better dividend. On top of this NGG pays more dividend than 80.77% of the companies listed in the same industry.
- NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
- On average, the dividend of NGG grows each year by 10.55%, which is quite nice.
- NGG has been paying a dividend for at least 10 years, so it has a reliable track record.
- NGG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.55%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- NGG pays out 56.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of NGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.13%
EPS Next 2Y10.77%
EPS Next 3Y9.26%
NATIONAL GRID PLC-SP ADR / NGG FAQ
What is the fundamental rating for NGG stock?
ChartMill assigns a fundamental rating of 5 / 10 to NGG.
Can you provide the valuation status for NATIONAL GRID PLC-SP ADR?
ChartMill assigns a valuation rating of 3 / 10 to NATIONAL GRID PLC-SP ADR (NGG). This can be considered as Overvalued.
What is the profitability of NGG stock?
NATIONAL GRID PLC-SP ADR (NGG) has a profitability rating of 7 / 10.
What are the PE and PB ratios of NATIONAL GRID PLC-SP ADR (NGG) stock?
The Price/Earnings (PE) ratio for NATIONAL GRID PLC-SP ADR (NGG) is 16.49 and the Price/Book (PB) ratio is 1.65.
What is the financial health of NATIONAL GRID PLC-SP ADR (NGG) stock?
The financial health rating of NATIONAL GRID PLC-SP ADR (NGG) is 3 / 10.