NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
NYSE:NGG - New York Stock Exchange, Inc. - US6362744095 - ADR - Currency: USD
Overall NGG gets a fundamental rating of 5 out of 10. We evaluated NGG against 25 industry peers in the Multi-Utilities industry. While NGG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NGG has a correct valuation and a medium 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
With a Return On Assets value of 2.72%, NGG perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
NGG's Return On Equity of 7.68% is on the low side compared to the rest of the industry. NGG is outperformed by 76.00% of its industry peers.
NGG has a Return On Invested Capital (3.84%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROIC | 3.84% |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.29%
ROIC(5y)4.05%
1.3 Margins
With an excellent Profit Margin value of 15.79%, NGG belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NGG has grown nicely.
With an excellent Operating Margin value of 26.72%, NGG belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
NGG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 83.64%, NGG belongs to the top of the industry, outperforming 92.00% 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 | 26.72% | ||
| PM (TTM) | 15.79% | ||
| GM | 83.64% |
OM growth 3Y10.3%
OM growth 5Y3.8%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGG is destroying value.
Compared to 1 year ago, NGG has more shares outstanding
Compared to 5 years ago, NGG has more shares outstanding
Compared to 1 year ago, NGG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that NGG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.34, NGG belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
NGG has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.13, NGG is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.57
WACC6.72%
2.3 Liquidity
NGG has a Current Ratio of 1.35. This is a normal value and indicates that NGG is financially healthy and should not expect problems in meeting its short term obligations.
NGG has a better Current ratio (1.35) than 100.00% of its industry peers.
NGG has a Quick Ratio of 1.30. This is a normal value and indicates that NGG is financially healthy and should not expect problems in meeting its short term obligations.
NGG has a better Quick ratio (1.30) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for NGG have decreased by -4.95% 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 5.87% on average per year.
The Revenue has decreased by -7.42% in the past year.
The Revenue has been growing slightly by 4.80% on average over the past years.
EPS 1Y (TTM)-4.95%
EPS 3Y6.08%
EPS 5Y5.87%
EPS Q2Q%-14.77%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
3.2 Future
NGG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.31% yearly.
NGG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.66% yearly.
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y8.14%
EPS Next 5Y7.31%
Revenue Next Year0.86%
Revenue Next 2Y6.45%
Revenue Next 3Y5.7%
Revenue Next 5Y7.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.09, which indicates a correct valuation of NGG.
NGG's Price/Earnings ratio is a bit cheaper when compared to the industry. NGG is cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. NGG is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.45 indicates a correct valuation of NGG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NGG indicates a somewhat cheap valuation: NGG is cheaper than 68.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NGG to the average of the S&P500 Index (21.76), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.62 |
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)2.9
PEG (5Y)2.4
EPS Next 2Y6.96%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, NGG is a good candidate for dividend investing.
NGG's Dividend Yield is a higher than the industry average which is at 3.74.
Compared to an average S&P500 Dividend Yield of 2.35, NGG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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 52.69% of its income as dividend. This is a bit on the high side, but may be sustainable.
NGG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.69%
EPS Next 2Y6.96%
EPS Next 3Y8.14%
70.19
-0.46 (-0.65%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.29%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap68.81B
Analysts80
Price Target81.48 (16.08%)
Short Float %0.16%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend2.41
Dividend Growth(5Y)10.55%
DP52.69%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-0.19%
PT rev (3m)7.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)8.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.45 | ||
| P/S | 2.77 | ||
| P/FCF | N/A | ||
| P/OCF | 7.63 | ||
| P/B | 1.35 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 11.62 |
EPS(TTM)4.98
EY7.1%
EPS(NY)5.22
Fwd EY7.44%
FCF(TTM)-3.61
FCFYN/A
OCF(TTM)9.2
OCFY13.11%
SpS25.3
BVpS52.04
TBVpS34.01
PEG (NY)2.9
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROCE | 5.11% | ||
| ROIC | 3.84% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.85% | ||
| OM | 26.72% | ||
| PM (TTM) | 15.79% | ||
| GM | 83.64% | ||
| FCFM | N/A |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.29%
ROIC(5y)4.05%
ROICexc(3y)4.52%
ROICexc(5y)4.25%
ROICexgc(3y)5.34%
ROICexgc(5y)5.03%
ROCE(3y)5.8%
ROCE(5y)5.47%
ROICexcg growth 3Y-1.61%
ROICexcg growth 5Y-0.1%
ROICexc growth 3Y0.17%
ROICexc growth 5Y-0.62%
OM growth 3Y10.3%
OM growth 5Y3.8%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 375.39% | ||
| Cap/Sales | 50.64% | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.34 |
F-Score6
WACC6.72%
ROIC/WACC0.57
Cap/Depr(3y)361.46%
Cap/Depr(5y)334.74%
Cap/Sales(3y)40%
Cap/Sales(5y)37.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.95%
EPS 3Y6.08%
EPS 5Y5.87%
EPS Q2Q%-14.77%
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y8.14%
EPS Next 5Y7.31%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
Revenue Next Year0.86%
Revenue Next 2Y6.45%
Revenue Next 3Y5.7%
Revenue Next 5Y7.66%
EBIT growth 1Y-17.5%
EBIT growth 3Y10.53%
EBIT growth 5Y8.77%
EBIT Next Year53.93%
EBIT Next 3Y24.4%
EBIT Next 5Y17.59%
FCF growth 1Y-381.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.24%
OCF growth 3Y2.21%
OCF growth 5Y7.68%