NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGG - US6362744095 - ADR
77.77 USD
+0.32 (+0.41%)
77.77 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NGG. NGG was compared to 26 industry peers in the Multi-Utilities industry. NGG has an excellent profitability rating, but there are concerns on its financial health. NGG has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years NGG has always been profitable.
NGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NGG (2.77%) is better than 80.77% of its industry peers.
NGG's Return On Equity of 7.72% is on the low side compared to the rest of the industry. NGG is outperformed by 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.11%, NGG is in the better half of the industry, outperforming 61.54% 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 3.94%.
| 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.
NGG's Profit Margin has improved in the last couple of years.
NGG has a better Operating Margin (29.57%) 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.
Compared to 1 year ago, NGG has more shares outstanding
NGG has more shares outstanding than it did 5 years ago.
NGG has a better debt/assets ratio than last year.
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.
The Altman-Z score of NGG (1.38) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that NGG has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 1.14, NGG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.59
WACC6.94%
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.
Looking at the Current ratio, with a value of 0.97, NGG is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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.
The Quick ratio of NGG (0.90) is better than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
NGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.56%.
NGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.68% yearly.
NGG shows a decrease in Revenue. In the last year, the revenue decreased by -9.52%.
The Revenue has been growing slightly by 4.80% on average over the past years.
EPS 1Y (TTM)-7.56%
EPS 3Y9.11%
EPS 5Y7.68%
EPS Q2Q%6.05%
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
Based on estimates for the next years, NGG will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y9.16%
EPS Next 2Y10.83%
EPS Next 3Y8.82%
EPS Next 5Y7.98%
Revenue Next Year-6.7%
Revenue Next 2Y2.06%
Revenue Next 3Y4.14%
Revenue Next 5Y7.8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 15.43, NGG is valued correctly.
69.23% 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 26.77, NGG is valued a bit cheaper.
NGG is valuated correctly with a Price/Forward Earnings ratio of 12.84.
Based on the Price/Forward Earnings ratio, NGG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NGG to the average of the S&P500 Index (23.35), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGG is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
NGG's 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)1.69
PEG (5Y)2.01
EPS Next 2Y10.83%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.88%, NGG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.62, NGG is paying slightly less dividend.
NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 56.13% 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.
DP56.13%
EPS Next 2Y10.83%
EPS Next 3Y8.82%
77.77
+0.32 (+0.41%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners61.85%
Inst Owner Change0.49%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap77.17B
Revenue(TTM)17.48B
Net Income(TTM)2.87B
Analysts78.33
Price Target81.8 (5.18%)
Short Float %0.15%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend2.39
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)0.95%
PT rev (3m)0.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.73%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 12.84 | ||
| P/S | 3.27 | ||
| P/FCF | N/A | ||
| P/OCF | 7.25 | ||
| P/B | 1.54 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 12.44 |
EPS(TTM)5.04
EY6.48%
EPS(NY)6.06
Fwd EY7.79%
FCF(TTM)-2.56
FCFYN/A
OCF(TTM)10.73
OCFY13.8%
SpS23.76
BVpS50.54
TBVpS32.85
PEG (NY)1.69
PEG (5Y)2.01
Graham Number75.7
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 | 1.38 |
F-Score5
WACC6.94%
ROIC/WACC0.59
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)-7.56%
EPS 3Y9.11%
EPS 5Y7.68%
EPS Q2Q%6.05%
EPS Next Y9.16%
EPS Next 2Y10.83%
EPS Next 3Y8.82%
EPS Next 5Y7.98%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-11.25%
Revenue Next Year-6.7%
Revenue Next 2Y2.06%
Revenue Next 3Y4.14%
Revenue Next 5Y7.8%
EBIT growth 1Y-1.73%
EBIT growth 3Y9.49%
EBIT growth 5Y8.16%
EBIT Next Year54.73%
EBIT Next 3Y25.13%
EBIT Next 5Y18.91%
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 4 / 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 9.16% in the next year.