NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA - NYSE:NGG - US6362744095 - ADR
76.95 USD
+1.05 (+1.38%)
76.95 USD
0 (0%)
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 an excellent profitability rating, but there are some minor concerns on its financial health. NGG has a decent growth rate and is not valued too expensively.
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.
NGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NGG (2.72%) is better than 68.00% of its industry peers.
NGG's Return On Equity of 7.68% is on the low side compared to the rest of the industry. NGG is outperformed by 80.00% of its industry peers.
With a Return On Invested Capital value of 3.84%, NGG perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
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
NGG has a better Profit Margin (15.79%) than 84.00% of its industry peers.
In the last couple of years the Profit Margin of NGG has grown nicely.
NGG has a Operating Margin of 26.72%. This is amongst the best in the industry. NGG outperforms 92.00% of its industry peers.
In the last couple of years the Operating Margin of NGG has grown nicely.
NGG's Gross Margin of 83.64% is amongst the best of the industry. NGG outperforms 92.00% of its industry peers.
NGG's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NGG 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 1.38, we must say that NGG is in the distress zone and has some risk of bankruptcy.
NGG has a better Altman-Z score (1.38) than 100.00% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that NGG has dependencies on debt financing.
NGG's Debt to Equity ratio of 1.13 is amongst the best of the industry. NGG outperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.56
WACC6.89%
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.
Looking at the Current ratio, 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 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.
The Earnings Per Share has been growing slightly by 5.87% on average over the past years.
NGG shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
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 7.74% yearly.
The Revenue is expected to grow by 7.50% on average over the next years.
EPS Next Y8.45%
EPS Next 2Y10.23%
EPS Next 3Y8.58%
EPS Next 5Y7.74%
Revenue Next Year-6.88%
Revenue Next 2Y1.49%
Revenue Next 3Y5.2%
Revenue Next 5Y7.5%
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
With a Price/Earnings ratio of 15.74, NGG is valued correctly.
72.00% of the companies in the same industry are more expensive than NGG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.40, NGG is valued a bit cheaper.
NGG is valuated correctly with a Price/Forward Earnings ratio of 14.50.
NGG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NGG is cheaper than 64.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NGG to the average of the S&P500 Index (22.94), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
NGG's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NGG may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)2.68
EPS Next 2Y10.23%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, NGG is a good candidate for dividend investing.
NGG's Dividend Yield is slightly below the industry average, which is at 4.79.
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 | 4.25% |
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
NGG pays out 52.69% 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.
DP52.69%
EPS Next 2Y10.23%
EPS Next 3Y8.58%
76.95
+1.05 (+1.38%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners61.85%
Inst Owner Change1.39%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap76.35B
Analysts80
Price Target81.66 (6.12%)
Short Float %0.15%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend2.34
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)0.02%
PT rev (3m)0.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-6.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 14.5 | ||
| P/S | 3.09 | ||
| P/FCF | N/A | ||
| P/OCF | 8.51 | ||
| P/B | 1.5 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)4.89
EY6.35%
EPS(NY)5.31
Fwd EY6.89%
FCF(TTM)-3.55
FCFYN/A
OCF(TTM)9.05
OCFY11.76%
SpS24.87
BVpS51.15
TBVpS33.43
PEG (NY)1.86
PEG (5Y)2.68
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 | 1.38 |
F-Score6
WACC6.89%
ROIC/WACC0.56
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 Y8.45%
EPS Next 2Y10.23%
EPS Next 3Y8.58%
EPS Next 5Y7.74%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
Revenue Next Year-6.88%
Revenue Next 2Y1.49%
Revenue Next 3Y5.2%
Revenue Next 5Y7.5%
EBIT growth 1Y-17.5%
EBIT growth 3Y10.53%
EBIT growth 5Y8.77%
EBIT Next Year53.87%
EBIT Next 3Y24.49%
EBIT Next 5Y17.72%
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%