NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
NYSE:NGG - New York Stock Exchange, Inc. - US6362744095 - ADR - Currency: USD
Taking everything into account, NGG scores 5 out of 10 in our fundamental rating. NGG was compared to 25 industry peers in the Multi-Utilities industry. NGG has only an average score on both its financial health and profitability. NGG is not valued too expensively and it also shows a decent growth rate. Finally NGG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NGG was profitable.
NGG had a positive operating cash flow in the past year.
NGG had positive earnings in each of the past 5 years.
In the past 5 years NGG always reported a positive cash flow from operatings.
1.2 Ratios
NGG has a worse Return On Assets (1.78%) than 84.00% of its industry peers.
The Return On Equity of NGG (5.05%) is worse than 84.00% of its industry peers.
The Return On Invested Capital of NGG (4.20%) is better than 68.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NGG is in line with the industry average of 3.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 5.05% | ||
| ROIC | 4.2% |
ROA(3y)4.41%
ROA(5y)3.51%
ROE(3y)14.65%
ROE(5y)11.72%
ROIC(3y)4.26%
ROIC(5y)4.05%
1.3 Margins
NGG has a worse Profit Margin (9.36%) than 80.00% of its industry peers.
NGG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 27.22%, NGG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NGG has grown nicely.
Looking at the Gross Margin, with a value of 88.19%, NGG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
NGG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.22% | ||
| PM (TTM) | 9.36% | ||
| GM | 88.19% |
OM growth 3Y16.86%
OM growth 5Y5.41%
PM growth 3Y-1.31%
PM growth 5Y2.66%
GM growth 3Y2.36%
GM growth 5Y2.43%
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.
Compared to 1 year ago, NGG has more shares outstanding
Compared to 5 years ago, NGG has less shares outstanding
Compared to 1 year ago, NGG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that NGG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.44, NGG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NGG has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
NGG has a Debt to Equity ratio of 1.19. This is amongst the best in the industry. NGG outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.68
WACC6.19%
2.3 Liquidity
NGG has a Current Ratio of 1.61. This is a normal value and indicates that NGG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.61, NGG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that NGG should not have too much problems paying its short term obligations.
NGG's Quick ratio of 1.54 is amongst the best of the industry. NGG outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.01% over the past year.
The Earnings Per Share has been growing slightly by 4.97% on average over the past years.
The Revenue has decreased by -6.68% in the past year.
The Revenue has been growing slightly by 5.86% on average over the past years.
EPS 1Y (TTM)36.01%
EPS 3Y12.62%
EPS 5Y4.97%
EPS Q2Q%16.69%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
3.2 Future
Based on estimates for the next years, NGG will show a small growth in Earnings Per Share. The EPS will grow by 3.89% on average per year.
Based on estimates for the next years, NGG will show a quite strong growth in Revenue. The Revenue will grow by 8.42% on average per year.
EPS Next Y-4.58%
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
EPS Next 5Y3.89%
Revenue Next Year-5.73%
Revenue Next 2Y-2.05%
Revenue Next 3Y1.66%
Revenue Next 5Y8.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 14.54, NGG is valued correctly.
Based on the Price/Earnings ratio, NGG is valued a bit cheaper than 72.00% of the companies in the same industry.
NGG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
NGG is valuated correctly with a Price/Forward Earnings ratio of 15.35.
Based on the Price/Forward Earnings ratio, NGG is valued a bit cheaper than 68.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NGG to the average of the S&P500 Index (21.08), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NGG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
NGG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.92
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, NGG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.72, NGG pays a better dividend. On top of this NGG pays more dividend than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, NGG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
On average, the dividend of NGG grows each year by 10.20%, which is quite nice.
NGG has paid a dividend for at least 10 years, which is a reliable track record.
As NGG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
NGG pays out 66.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.56%
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
72.11
+0.63 (+0.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner Change0.02%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap70.63B
Analysts83.33
Price Target75.89 (5.24%)
Short Float %0.15%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend2.84
Dividend Growth(5Y)10.2%
DP66.56%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.47%
PT rev (3m)4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.38%
EPS NY rev (3m)22.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 15.35 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 8.22 | ||
| P/B | 1.49 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)4.96
EY6.88%
EPS(NY)4.7
Fwd EY6.52%
FCF(TTM)-2.31
FCFYN/A
OCF(TTM)8.77
OCFY12.16%
SpS26.1
BVpS48.41
TBVpS31.17
PEG (NY)N/A
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 5.05% | ||
| ROCE | 5.66% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.56% | ||
| ROICexgc | 5.36% | ||
| OM | 27.22% | ||
| PM (TTM) | 9.36% | ||
| GM | 88.19% | ||
| FCFM | N/A |
ROA(3y)4.41%
ROA(5y)3.51%
ROE(3y)14.65%
ROE(5y)11.72%
ROIC(3y)4.26%
ROIC(5y)4.05%
ROICexc(3y)4.45%
ROICexc(5y)4.22%
ROICexgc(3y)5.36%
ROICexgc(5y)4.97%
ROCE(3y)5.83%
ROCE(5y)5.55%
ROICexcg growth 3Y17.73%
ROICexcg growth 5Y2.51%
ROICexc growth 3Y15.54%
ROICexc growth 5Y1.88%
OM growth 3Y16.86%
OM growth 5Y5.41%
PM growth 3Y-1.31%
PM growth 5Y2.66%
GM growth 3Y2.36%
GM growth 5Y2.43%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 390.94% | ||
| Cap/Sales | 42.45% | ||
| Interest Coverage | 2.84 | ||
| Cash Conversion | 88.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.44 |
F-Score6
WACC6.19%
ROIC/WACC0.68
Cap/Depr(3y)337.32%
Cap/Depr(5y)319.42%
Cap/Sales(3y)33.24%
Cap/Sales(5y)33.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.01%
EPS 3Y12.62%
EPS 5Y4.97%
EPS Q2Q%16.69%
EPS Next Y-4.58%
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
EPS Next 5Y3.89%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
Revenue Next Year-5.73%
Revenue Next 2Y-2.05%
Revenue Next 3Y1.66%
Revenue Next 5Y8.42%
EBIT growth 1Y7.96%
EBIT growth 3Y32.35%
EBIT growth 5Y11.58%
EBIT Next Year57.7%
EBIT Next 3Y24.36%
EBIT Next 5Y18.1%
FCF growth 1Y-1086.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.85%
OCF growth 3Y15.73%
OCF growth 5Y9.86%