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 has a correct valuation and a medium growth rate. Finally NGG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NGG had positive earnings in the past year.
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 1.78% is on the low side compared to the rest of the industry. NGG is outperformed by 84.00% of its industry peers.
NGG has a worse Return On Equity (5.05%) than 84.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.20%, NGG is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
NGG had an Average Return On Invested Capital over the past 3 years of 4.26%. This is in line with the industry average of 3.68%.
| 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
The Profit Margin of NGG (9.36%) is worse than 84.00% 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.
NGG has a better Gross Margin (88.19%) than 92.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGG is destroying value.
NGG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NGG has less shares outstanding
The debt/assets ratio for NGG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that NGG is in the distress zone and has some risk of bankruptcy.
NGG's Altman-Z score of 1.39 is amongst the best of the industry. NGG outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that NGG has dependencies on debt financing.
NGG has a better Debt to Equity ratio (1.19) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.71
WACC5.95%
2.3 Liquidity
A Current Ratio of 1.61 indicates that NGG should not have too much problems paying its short term obligations.
NGG's Current ratio of 1.61 is amongst the best of the industry. NGG outperforms 100.00% of its industry peers.
NGG has a Quick Ratio of 1.54. This is a normal value and indicates that NGG is financially healthy and should not expect problems in meeting 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.
NGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.97% yearly.
NGG shows a decrease in Revenue. In the last year, the revenue decreased by -6.68%.
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
NGG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.64% yearly.
NGG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.78% yearly.
EPS Next Y-4.31%
EPS Next 2Y0.24%
EPS Next 3Y3.54%
EPS Next 5Y3.64%
Revenue Next Year-9.34%
Revenue Next 2Y-3.64%
Revenue Next 3Y0.4%
Revenue Next 5Y7.78%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 12.96, which indicates a correct valuation of NGG.
68.00% of the companies in the same industry are more expensive than NGG, based on the Price/Earnings ratio.
NGG is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
NGG is valuated correctly with a Price/Forward Earnings ratio of 13.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NGG indicates a somewhat cheap valuation: NGG is cheaper than 72.00% 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 (22.68), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 13.57 |
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 | 10.76 |
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)2.61
EPS Next 2Y0.24%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 5.77%, which is a nice return.
Compared to an average industry Dividend Yield of 3.76, NGG pays a better dividend. On top of this NGG pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, NGG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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.
NGG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
66.56% of the earnings are spent on dividend by NGG. This is not a sustainable payout ratio.
NGG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.56%
EPS Next 2Y0.24%
EPS Next 3Y3.54%
61.31
+0.21 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner Change1.03%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap59.99B
Analysts81.67
Price Target74.19 (21.01%)
Short Float %0.13%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
Yearly Dividend0.46
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)1.68%
PT rev (3m)-2.54%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)22.89%
EPS NY rev (3m)22.88%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 13.57 | ||
| P/S | 2.46 | ||
| P/FCF | N/A | ||
| P/OCF | 7.33 | ||
| P/B | 1.33 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)4.73
EY7.71%
EPS(NY)4.52
Fwd EY7.37%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)8.37
OCFY13.65%
SpS24.9
BVpS46.19
TBVpS29.74
PEG (NY)N/A
PEG (5Y)2.61
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 | 1.39 |
F-Score6
WACC5.95%
ROIC/WACC0.71
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-4.31%
EPS Next 2Y0.24%
EPS Next 3Y3.54%
EPS Next 5Y3.64%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
Revenue Next Year-9.34%
Revenue Next 2Y-3.64%
Revenue Next 3Y0.4%
Revenue Next 5Y7.78%
EBIT growth 1Y7.96%
EBIT growth 3Y32.35%
EBIT growth 5Y11.58%
EBIT Next Year56.75%
EBIT Next 3Y24.38%
EBIT Next 5Y17.73%
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%