NATIONAL GRID PLC (NNGF.DE) Stock Fundamental Analysis
FRA:NNGF - Deutsche Boerse Ag - GB00BDR05C01 - Common Stock - Currency: EUR
NNGF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Multi-Utilities industry. NNGF has a medium profitability rating, but doesn't score so well on its financial health evaluation. NNGF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NNGF was profitable.
In the past year NNGF had a positive cash flow from operations.
In the past 5 years NNGF has always been profitable.
Each year in the past 5 years NNGF had a positive operating cash flow.
1.2 Ratios
NNGF has a worse Return On Assets (1.78%) than 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 5.05%, NNGF is doing worse than 92.31% of the companies in the same industry.
NNGF's Return On Invested Capital of 4.20% is on the low side compared to the rest of the industry. NNGF is outperformed by 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NNGF is below the industry average of 6.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 5.05% | ||
| ROIC | 4.2% |
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
NNGF has a better Profit Margin (9.36%) than 92.31% of its industry peers.
In the last couple of years the Profit Margin of NNGF has grown nicely.
NNGF has a better Operating Margin (27.22%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of NNGF has grown nicely.
NNGF has a Gross Margin of 88.19%. This is amongst the best in the industry. NNGF outperforms 100.00% of its industry peers.
NNGF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.22% | ||
| PM (TTM) | 9.36% | ||
| GM | 88.19% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNGF is destroying value.
Compared to 1 year ago, NNGF has more shares outstanding
NNGF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NNGF is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that NNGF is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.04, NNGF is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
NNGF has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
NNGF has a better Debt to Equity ratio (1.19) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.94
WACC4.46%
2.3 Liquidity
A Current Ratio of 1.61 indicates that NNGF should not have too much problems paying its short term obligations.
The Current ratio of NNGF (1.61) is better than 100.00% of its industry peers.
NNGF has a Quick Ratio of 1.54. This is a normal value and indicates that NNGF is financially healthy and should not expect problems in meeting its short term obligations.
NNGF has a Quick ratio of 1.54. This is amongst the best in the industry. NNGF outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.01% over the past year.
Measured over the past 5 years, NNGF shows a small growth in Earnings Per Share. The EPS has been growing by 4.97% on average per year.
Looking at the last year, NNGF shows a decrease in Revenue. The Revenue has decreased by -6.68% in the last year.
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)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
3.2 Future
Based on estimates for the next years, NNGF will show a small growth in Earnings Per Share. The EPS will grow by 3.64% on average per year.
NNGF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.78% yearly.
EPS Next Y-4.31%
EPS Next 2Y0.23%
EPS Next 3Y3.53%
EPS Next 5Y3.64%
Revenue Next Year-5.73%
Revenue Next 2Y-2.05%
Revenue Next 3Y1.66%
Revenue Next 5Y7.78%
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 decreasing.
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
The Price/Earnings ratio is 11.56, which indicates a very decent valuation of NNGF.
Based on the Price/Earnings ratio, NNGF is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of NNGF to the average of the S&P500 Index (29.35), we can say NNGF is valued rather cheaply.
NNGF is valuated correctly with a Price/Forward Earnings ratio of 12.05.
Based on the Price/Forward Earnings ratio, NNGF is valued a bit more expensive than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, NNGF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NNGF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
The decent profitability rating of NNGF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.33
EPS Next 2Y0.23%
EPS Next 3Y3.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.98%, NNGF is a good candidate for dividend investing.
NNGF's Dividend Yield is a higher than the industry average which is at 5.81.
Compared to an average S&P500 Dividend Yield of 2.33, NNGF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
5.2 History
On average, the dividend of NNGF grows each year by 10.20%, which is quite nice.
Dividend Growth(5Y)10.2%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
66.56% of the earnings are spent on dividend by NNGF. This is not a sustainable payout ratio.
NNGF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.56%
EPS Next 2Y0.23%
EPS Next 3Y3.53%
FRA:NNGF (3/7/2025, 7:00:00 PM)
11.1
+0.1 (+0.91%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap10.86B
Analysts81.67
Price Target14.18 (27.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
Yearly Dividend0.55
Dividend Growth(5Y)10.2%
DP66.56%
Div Incr Years3
Div Non Decr Years3
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)3.14%
PT rev (3m)1.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.99%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 12.05 | ||
| P/S | 0.47 | ||
| P/FCF | N/A | ||
| P/OCF | 1.41 | ||
| P/B | 0.25 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)0.96
EY8.65%
EPS(NY)0.92
Fwd EY8.3%
FCF(TTM)-2.08
FCFYN/A
OCF(TTM)7.89
OCFY71.11%
SpS23.48
BVpS43.56
TBVpS28.05
PEG (NY)N/A
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 5.05% | ||
| ROCE | 5.66% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.56% | ||
| ROICexgc | 5.36% | ||
| OM | 27.22% | ||
| PM (TTM) | 9.36% | ||
| GM | 88.19% | ||
| 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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 390.94% | ||
| Cap/Sales | 42.45% | ||
| Interest Coverage | 2.84 | ||
| Cash Conversion | 88.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.04 |
F-Score6
WACC4.46%
ROIC/WACC0.94
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-4.31%
EPS Next 2Y0.23%
EPS Next 3Y3.53%
EPS Next 5Y3.64%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
Revenue Next Year-5.73%
Revenue Next 2Y-2.05%
Revenue Next 3Y1.66%
Revenue Next 5Y7.78%
EBIT growth 1Y7.96%
EBIT growth 3Y32.35%
EBIT growth 5Y11.58%
EBIT Next Year56.75%
EBIT Next 3Y24.38%
EBIT Next 5Y17.73%
FCF growth 1Y-1086.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.85%
OCF growth 3Y15.73%
OCF growth 5Y9.86%