NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
NYSE:NGG - New York Stock Exchange, Inc. - US6362744095 - ADR
We assign a fundamental rating of 5 out of 10 to NGG. NGG was compared to 25 industry peers in the Multi-Utilities industry. NGG has an excellent profitability rating, but there are concerns on its financial health. NGG is quite expensive at the moment. It does show a decent 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.
In the past 5 years NGG always reported a positive cash flow from operatings.
1.2 Ratios
NGG has a Return On Assets of 2.33%. This is amonst the worse of the industry: NGG underperforms 80.00% of its industry peers.
NGG has a worse Return On Equity (7.67%) than 80.00% of its industry peers.
NGG has a better Return On Invested Capital (5.08%) than 100.00% of its industry peers.
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%.
The 3 year average ROIC (4.26%) for NGG is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.67% | ||
| ROIC | 5.08% |
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
NGG has a worse Profit Margin (11.54%) than 72.00% of its industry peers.
NGG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.99%, NGG belongs to the top 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.
Looking at the Gross Margin, with a value of 85.84%, NGG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
NGG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.99% | ||
| PM (TTM) | 11.54% | ||
| GM | 85.84% |
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.
NGG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NGG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that NGG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.28, NGG belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
NGG has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
NGG has a Debt to Equity ratio of 1.41. This is in the better half of the industry: NGG outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.85
WACC6%
2.3 Liquidity
A Current Ratio of 0.91 indicates that NGG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, NGG is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
NGG has a Quick Ratio of 0.91. 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's Quick ratio of 0.84 is amongst the best of the industry. NGG outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.84 |
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 -8.35%.
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)-8.35%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
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 4.06% on average per year.
The Revenue is expected to grow by 11.44% on average over the next years. This is quite good.
EPS Next Y-5.79%
EPS Next 2Y-0.34%
EPS Next 3Y2.98%
EPS Next 5Y4.06%
Revenue Next Year-8.95%
Revenue Next 2Y-3.59%
Revenue Next 3Y0.46%
Revenue Next 5Y11.44%
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.
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 15.89, NGG is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as NGG.
NGG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
NGG is valuated correctly with a Price/Forward Earnings ratio of 16.84.
60.00% of the companies in the same industry are cheaper than NGG, based on the Price/Forward Earnings ratio.
NGG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 16.84 |
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 | 11.01 |
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)3.2
EPS Next 2Y-0.34%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 5.79%, which is a nice return.
Compared to an average industry Dividend Yield of 3.82, NGG pays a better dividend. On top of this NGG pays more dividend than 92.00% of the companies listed in the same industry.
NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
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
NGG pays out 75.02% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP75.02%
EPS Next 2Y-0.34%
EPS Next 3Y2.98%
NATIONAL GRID PLC-SP ADR
NYSE:NGG (1/22/2025, 11:43:09 AM)
60.38
-1.21 (-1.96%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.58%
Inst Owner Change-0.28%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap59.01B
Analysts80
Price Target72.97 (20.85%)
Short Float %0.03%
Short Ratio0.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend0.46
Dividend Growth(5Y)10.2%
DP75.02%
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)-1.99%
PT rev (3m)-5.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 16.84 | ||
| P/S | 2.43 | ||
| P/FCF | N/A | ||
| P/OCF | 6.97 | ||
| P/B | 1.61 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)3.8
EY6.29%
EPS(NY)3.59
Fwd EY5.94%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)8.66
OCFY14.34%
SpS24.88
BVpS37.44
TBVpS20.94
PEG (NY)N/A
PEG (5Y)3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.67% | ||
| ROCE | 6.85% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 6.35% | ||
| OM | 29.99% | ||
| PM (TTM) | 11.54% | ||
| GM | 85.84% | ||
| 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-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.27 | ||
| Cap/Depr | 361.62% | ||
| Cap/Sales | 37.55% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 86.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.28 |
F-Score5
WACC6%
ROIC/WACC0.85
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-5.79%
EPS Next 2Y-0.34%
EPS Next 3Y2.98%
EPS Next 5Y4.06%
Revenue 1Y (TTM)-8.35%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
Revenue Next Year-8.95%
Revenue Next 2Y-3.59%
Revenue Next 3Y0.46%
Revenue Next 5Y11.44%
EBIT growth 1Y25.96%
EBIT growth 3Y32.35%
EBIT growth 5Y11.58%
EBIT Next Year56.75%
EBIT Next 3Y24.38%
EBIT Next 5Y17.88%
FCF growth 1Y-3726.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.03%
OCF growth 3Y15.73%
OCF growth 5Y9.86%