NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA - NYSE:NGG - US6362744095 - ADR
70.88 USD
-0.74 (-1.03%)
70.88 USD
0 (0%)
NGG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. While NGG has a great profitability rating, there are some minor concerns on its financial health. NGG has a decent growth rate and is not valued too expensively. NGG also has an excellent dividend rating.
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
With a decent Return On Assets value of 2.72%, NGG is doing good in the industry, outperforming 68.00% of the companies in the same industry.
NGG has a worse Return On Equity (7.68%) than 80.00% of its industry peers.
NGG has a Return On Invested Capital (3.84%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.82%.
| 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
Looking at the Profit Margin, with a value of 15.79%, NGG belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
NGG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.72%, NGG belongs to the top 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.
NGG's Gross Margin of 83.64% is amongst the best of the industry. NGG outperforms 92.00% of its industry peers.
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
The debt/assets ratio for NGG has been reduced compared to a year ago.
2.2 Solvency
NGG has an Altman-Z score of 1.35. This is a bad value and indicates that NGG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, 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 1.13. This is a high value indicating a heavy dependency on external financing.
NGG has a better Debt to Equity ratio (1.13) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.57
WACC6.75%
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.
The Current ratio of NGG (1.35) is better 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
NGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.95%.
NGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.87% yearly.
The Revenue has decreased by -7.42% in the past year.
Measured over the past years, NGG shows a small growth in Revenue. The Revenue has been growing by 4.80% on average per year.
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
Based on estimates for the next years, NGG will show a small growth in Earnings Per Share. The EPS will grow by 7.57% on average per year.
The Revenue is expected to grow by 7.53% on average over the next years.
EPS Next Y8.43%
EPS Next 2Y10.25%
EPS Next 3Y8.71%
EPS Next 5Y7.57%
Revenue Next Year-5.12%
Revenue Next 2Y2.23%
Revenue Next 3Y3.98%
Revenue Next 5Y7.53%
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 accelerating.
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
A Price/Earnings ratio of 14.29 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.
Compared to an average S&P500 Price/Earnings ratio of 27.20, NGG is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.18 indicates a correct valuation of NGG.
Based on the Price/Forward Earnings ratio, NGG is valued a bit cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. NGG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
NGG's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NGG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)2.43
EPS Next 2Y10.25%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 4.50%, which is a nice return.
Compared to an average industry Dividend Yield of 3.64, NGG pays a bit more dividend than its industry peers.
NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
On average, the dividend of NGG grows each year by 10.55%, 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 last 3 years.
Dividend Growth(5Y)10.55%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
52.69% of the earnings are spent on dividend by NGG. 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.
DP52.69%
EPS Next 2Y10.25%
EPS Next 3Y8.71%
70.88
-0.74 (-1.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.29%
Inst Owner Change14.08%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap70.33B
Analysts80
Price Target81.69 (15.25%)
Short Float %0.13%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend2.39
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)1.23%
PT rev (3m)0.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)3.4%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-5.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 13.18 | ||
| P/S | 2.81 | ||
| P/FCF | N/A | ||
| P/OCF | 7.73 | ||
| P/B | 1.37 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)4.96
EY7%
EPS(NY)5.38
Fwd EY7.59%
FCF(TTM)-3.6
FCFYN/A
OCF(TTM)9.17
OCFY12.94%
SpS25.22
BVpS51.88
TBVpS33.91
PEG (NY)1.7
PEG (5Y)2.43
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 | 1.35 |
F-Score6
WACC6.75%
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 Y8.43%
EPS Next 2Y10.25%
EPS Next 3Y8.71%
EPS Next 5Y7.57%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
Revenue Next Year-5.12%
Revenue Next 2Y2.23%
Revenue Next 3Y3.98%
Revenue Next 5Y7.53%
EBIT growth 1Y-17.5%
EBIT growth 3Y10.53%
EBIT growth 5Y8.77%
EBIT Next Year53.93%
EBIT Next 3Y24.59%
EBIT Next 5Y17.77%
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%