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 14 industry peers in the Multi-Utilities industry. While NNGF belongs to the best of the industry regarding profitability, there are concerns on its financial health. NNGF is quite expensive at the moment. It does show a decent growth rate. Finally NNGF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NNGF was profitable.
NNGF had a positive operating cash flow in the past year.
NNGF had positive earnings in each of the past 5 years.
Each year in the past 5 years NNGF had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.33%, NNGF perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.67%, NNGF is doing worse than 85.71% of the companies in the same industry.
NNGF has a Return On Invested Capital of 5.08%. This is in the lower half of the industry: NNGF underperforms 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NNGF is in line with the industry average of 6.12%.
The 3 year average ROIC (4.26%) for NNGF 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
The Profit Margin of NNGF (11.54%) is better than 92.86% of its industry peers.
NNGF's Profit Margin has improved in the last couple of years.
NNGF has a better Operating Margin (29.99%) than 100.00% of its industry peers.
NNGF's Operating Margin has improved in the last couple of years.
The Gross Margin of NNGF (85.84%) is better than 92.86% of its industry peers.
NNGF'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
NNGF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NNGF has more shares outstanding than it did 1 year ago.
NNGF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NNGF has a worse debt to assets ratio.
2.2 Solvency
NNGF has an Altman-Z score of 0.93. This is a bad value and indicates that NNGF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.93, NNGF is in line with its industry, outperforming 57.14% of the companies in the same industry.
NNGF has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.41, NNGF is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
ROIC/WACC1.16
WACC4.39%
2.3 Liquidity
NNGF has a Current Ratio of 0.91. This is a bad value and indicates that NNGF is not financially healthy enough and could expect problems in meeting its short term obligations.
NNGF has a Current ratio of 0.91. This is comparable to the rest of the industry: NNGF outperforms 42.86% of its industry peers.
A Quick Ratio of 0.84 indicates that NNGF may have some problems paying its short term obligations.
NNGF has a Quick ratio of 0.84. This is in the lower half of the industry: NNGF underperforms 64.29% 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.
The Earnings Per Share has been growing slightly by 4.97% on average over the past years.
Looking at the last year, NNGF shows a decrease in Revenue. The Revenue has decreased by -8.35% in the last year.
Measured over the past years, NNGF shows a small growth in Revenue. The Revenue has been growing by 5.86% on average per year.
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
The Earnings Per Share is expected to grow by 3.64% on average over the next years.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y-4.31%
EPS Next 2Y0.24%
EPS Next 3Y3.54%
EPS Next 5Y3.64%
Revenue Next Year-9.34%
Revenue Next 2Y-3.64%
Revenue Next 3Y0.4%
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 12.14, which indicates a correct valuation of NNGF.
NNGF's Price/Earnings ratio is a bit more expensive when compared to the industry. NNGF is more expensive than 64.29% of the companies in the same industry.
NNGF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 12.78 indicates a correct valuation of NNGF.
Based on the Price/Forward Earnings ratio, NNGF is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 92.74. NNGF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NNGF indicates a slightly more expensive valuation: NNGF is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
The decent profitability rating of NNGF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.44
EPS Next 2Y0.24%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
NNGF has a Yearly Dividend Yield of 5.63%, which is a nice return.
NNGF's Dividend Yield is rather good when compared to the industry average which is at 4.91. NNGF pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, NNGF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
5.2 History
The dividend of NNGF is nicely growing with an annual growth rate of 10.20%!
Dividend Growth(5Y)10.2%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
NNGF pays out 75.02% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NNGF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP75.02%
EPS Next 2Y0.24%
EPS Next 3Y3.54%
NATIONAL GRID PLC
FRA:NNGF (2/4/2025, 7:00:00 PM)
11.9
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.58%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap11.64B
Analysts80
Price Target13.75 (15.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
Yearly Dividend0.46
Dividend Growth(5Y)10.2%
DP75.02%
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)-2.43%
PT rev (3m)-0.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.56%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 12.78 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 1.4 | ||
| P/B | 0.32 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)0.98
EY8.24%
EPS(NY)0.93
Fwd EY7.83%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)8.49
OCFY71.33%
SpS24.39
BVpS36.69
TBVpS20.53
PEG (NY)N/A
PEG (5Y)2.44
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 | 0.93 |
F-Score5
WACC4.39%
ROIC/WACC1.16
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 2Y0.24%
EPS Next 3Y3.54%
EPS Next 5Y3.64%
Revenue 1Y (TTM)-8.35%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
Revenue Next Year-9.34%
Revenue Next 2Y-3.64%
Revenue Next 3Y0.4%
Revenue Next 5Y7.78%
EBIT growth 1Y25.96%
EBIT growth 3Y32.35%
EBIT growth 5Y11.58%
EBIT Next Year56.75%
EBIT Next 3Y24.38%
EBIT Next 5Y17.73%
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%