NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA - NYSE:NGG - US6362744095 - ADR
75.83 USD
-0.26 (-0.34%)
75.83 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NGG. NGG was compared to 26 industry peers in the Multi-Utilities industry. While NGG belongs to the best of the industry regarding profitability, there are 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.
NGG had a positive operating cash flow in the past year.
Each year in the past 5 years NGG has been profitable.
NGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 2.77%, NGG belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.72%, NGG is doing worse than 69.23% of the companies in the same industry.
NGG has a Return On Invested Capital of 4.11%. This is comparable to the rest of the industry: NGG outperforms 57.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.72% | ||
| ROIC | 4.11% |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.25%
ROIC(5y)4.02%
1.3 Margins
NGG has a better Profit Margin (16.43%) than 92.31% of its industry peers.
In the last couple of years the Profit Margin of NGG has grown nicely.
The Operating Margin of NGG (29.57%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of NGG has grown nicely.
Looking at the Gross Margin, with a value of 87.92%, NGG belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
NGG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.57% | ||
| PM (TTM) | 16.43% | ||
| GM | 87.92% |
OM growth 3Y9.26%
OM growth 5Y3.21%
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.
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.
NGG has a better debt/assets ratio than last year.
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.
With an excellent Altman-Z score value of 1.39, NGG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that NGG has dependencies on debt financing.
NGG has a Debt to Equity ratio of 1.14. This is amongst the best in the industry. NGG outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.6
WACC6.9%
2.3 Liquidity
NGG has a Current Ratio of 0.97. This is a bad value and indicates that NGG is not financially healthy enough and could expect problems in meeting its short term obligations.
NGG has a Current ratio of 0.97. This is in the better half of the industry: NGG outperforms 61.54% of its industry peers.
NGG has a Quick Ratio of 0.97. This is a bad value and indicates that NGG is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.90, NGG belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.9 |
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 -9.52% in the past year.
NGG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.80% yearly.
EPS 1Y (TTM)-4.95%
EPS 3Y6.08%
EPS 5Y5.87%
EPS Q2Q%-1.19%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-11.25%
3.2 Future
NGG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.32% yearly.
Based on estimates for the next years, NGG will show a small growth in Revenue. The Revenue will grow by 7.58% on average per year.
EPS Next Y7.3%
EPS Next 2Y9.72%
EPS Next 3Y8.72%
EPS Next 5Y8.32%
Revenue Next Year-6.87%
Revenue Next 2Y1.49%
Revenue Next 3Y5.35%
Revenue Next 5Y7.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 15.80 indicates a correct valuation of NGG.
Based on the Price/Earnings ratio, NGG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
NGG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.13, the valuation of NGG can be described as correct.
69.23% of the companies in the same industry are more expensive than NGG, based on the Price/Forward Earnings ratio.
NGG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 13.13 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than NGG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.51 |
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)2.16
PEG (5Y)2.69
EPS Next 2Y9.72%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
NGG's Dividend Yield is comparable with the industry average which is at 4.19.
Compared to an average S&P500 Dividend Yield of 2.44, NGG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
The dividend of NGG is nicely growing with an annual growth rate of 10.55%!
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 56.13% 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.
DP56.13%
EPS Next 2Y9.72%
EPS Next 3Y8.72%
75.83
-0.26 (-0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners61.85%
Inst Owner Change0.45%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap75.25B
Revenue(TTM)17.48B
Net Income(TTM)2.87B
Analysts80
Price Target80.55 (6.22%)
Short Float %0.16%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend2.33
Dividend Growth(5Y)10.55%
DP56.13%
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)-1.36%
PT rev (3m)-0.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.7%
EPS NY rev (3m)2.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 13.13 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | 7.26 | ||
| P/B | 1.54 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)4.8
EY6.33%
EPS(NY)5.78
Fwd EY7.62%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)10.44
OCFY13.77%
SpS23.12
BVpS49.18
TBVpS31.97
PEG (NY)2.16
PEG (5Y)2.69
Graham Number72.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.72% | ||
| ROCE | 5.47% | ||
| ROIC | 4.11% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 5.01% | ||
| OM | 29.57% | ||
| PM (TTM) | 16.43% | ||
| GM | 87.92% | ||
| FCFM | N/A |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.25%
ROIC(5y)4.02%
ROICexc(3y)4.48%
ROICexc(5y)4.23%
ROICexgc(3y)5.3%
ROICexgc(5y)5%
ROCE(3y)5.75%
ROCE(5y)5.44%
ROICexgc growth 3Y-2.54%
ROICexgc growth 5Y-0.66%
ROICexc growth 3Y-0.77%
ROICexc growth 5Y-1.18%
OM growth 3Y9.26%
OM growth 5Y3.21%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.5 | ||
| Cap/Depr | 387.71% | ||
| Cap/Sales | 55.95% | ||
| Interest Coverage | 2.7 | ||
| Cash Conversion | 102.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.39 |
F-Score5
WACC6.9%
ROIC/WACC0.6
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%-1.19%
EPS Next Y7.3%
EPS Next 2Y9.72%
EPS Next 3Y8.72%
EPS Next 5Y8.32%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-11.25%
Revenue Next Year-6.87%
Revenue Next 2Y1.49%
Revenue Next 3Y5.35%
Revenue Next 5Y7.58%
EBIT growth 1Y-1.73%
EBIT growth 3Y9.49%
EBIT growth 5Y8.16%
EBIT Next Year53.87%
EBIT Next 3Y25.11%
EBIT Next 5Y18.77%
FCF growth 1Y-629.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.99%
OCF growth 3Y2.21%
OCF growth 5Y7.68%
NATIONAL GRID PLC-SP ADR / NGG FAQ
What is the fundamental rating for NGG stock?
ChartMill assigns a fundamental rating of 5 / 10 to NGG.
What is the valuation status of NATIONAL GRID PLC-SP ADR (NGG) stock?
ChartMill assigns a valuation rating of 4 / 10 to NATIONAL GRID PLC-SP ADR (NGG). This can be considered as Fairly Valued.
What is the profitability of NGG stock?
NATIONAL GRID PLC-SP ADR (NGG) has a profitability rating of 7 / 10.
Can you provide the financial health for NGG stock?
The financial health rating of NATIONAL GRID PLC-SP ADR (NGG) is 3 / 10.
Can you provide the expected EPS growth for NGG stock?
The Earnings per Share (EPS) of NATIONAL GRID PLC-SP ADR (NGG) is expected to grow by 7.3% in the next year.