NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
NYSE:NGG - New York Stock Exchange, Inc. - US6362744095 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to NGG. NGG was compared to 25 industry peers in the Multi-Utilities industry. While NGG has a great profitability rating, there are some minor concerns on its financial health. NGG is not valued too expensively and it also shows a decent growth rate. 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.
In the past 5 years NGG has always been profitable.
In the past 5 years NGG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.72%, NGG is in line with its industry, outperforming 44.00% of the companies in the same industry.
With a Return On Equity value of 7.68%, NGG is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
NGG has a Return On Invested Capital (3.84%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROIC | 3.84% |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.29%
ROIC(5y)4.05%
1.3 Margins
NGG's Profit Margin of 15.79% is amongst the best of the industry. NGG outperforms 84.00% of its industry peers.
NGG's Profit Margin has improved in the last couple of years.
NGG has a Operating Margin of 26.72%. This is amongst the best in the industry. NGG outperforms 92.00% of its industry peers.
NGG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.64%, NGG belongs to the best of the industry, outperforming 92.00% 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 | 26.72% | ||
| PM (TTM) | 15.79% | ||
| GM | 83.64% |
OM growth 3Y10.3%
OM growth 5Y3.8%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
2. Health
2.1 Basic Checks
NGG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NGG has more shares outstanding than it did 1 year ago.
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 1.36, we must say that NGG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.36, NGG belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that NGG has dependencies on debt financing.
NGG has a Debt to Equity ratio of 1.13. This is in the better half of the industry: NGG outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.57
WACC6.74%
2.3 Liquidity
A Current Ratio of 1.35 indicates that NGG should not have too much problems paying its short term obligations.
NGG has a Current ratio of 1.35. This is amongst the best in the industry. NGG outperforms 100.00% of its industry peers.
A Quick Ratio of 1.30 indicates that NGG should not have too much problems paying its short term obligations.
The Quick ratio of NGG (1.30) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
NGG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.95%.
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 -7.42% in the past year.
The Revenue has been growing slightly by 4.80% on average over the past years.
EPS 1Y (TTM)-4.95%
EPS 3Y6.08%
EPS 5Y5.87%
EPS Q2Q%-14.77%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
3.2 Future
NGG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.57% yearly.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y8.58%
EPS Next 5Y7.57%
Revenue Next Year-4.88%
Revenue Next 2Y2.13%
Revenue Next 3Y3.88%
Revenue Next 5Y7.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 15.14 indicates a correct valuation of NGG.
Compared to the rest of the industry, the Price/Earnings ratio of NGG indicates a somewhat cheap valuation: NGG is cheaper than 68.00% of the companies listed in the same industry.
NGG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.45, which indicates a correct valuation of NGG.
The rest of the industry has a similar Price/Forward Earnings ratio as NGG.
The average S&P500 Price/Forward Earnings ratio is at 36.42. NGG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 14.45 |
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 | 12.04 |
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)3.11
PEG (5Y)2.58
EPS Next 2Y6.96%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 4.41%, which is a nice return.
Compared to an average industry Dividend Yield of 3.57, NGG pays a bit more dividend than its industry peers.
NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of NGG is nicely growing with an annual growth rate of 10.55%!
NGG has been paying a dividend for at least 10 years, so it has 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
52.69% of the earnings are spent on dividend by NGG. 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.
DP52.69%
EPS Next 2Y6.96%
EPS Next 3Y8.58%
72.65
+0.83 (+1.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.29%
Inst Owner Change0.08%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap72.09B
Analysts80
Price Target81.48 (12.15%)
Short Float %0.16%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend2.32
Dividend Growth(5Y)10.55%
DP52.69%
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%
PT rev (3m)2.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.2%
EPS NY rev (3m)7.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.82%
Revenue NY rev (3m)-5.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 14.45 | ||
| P/S | 2.98 | ||
| P/FCF | N/A | ||
| P/OCF | 8.19 | ||
| P/B | 1.45 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)4.8
EY6.61%
EPS(NY)5.03
Fwd EY6.92%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)8.87
OCFY12.21%
SpS24.38
BVpS50.14
TBVpS32.77
PEG (NY)3.11
PEG (5Y)2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROCE | 5.11% | ||
| ROIC | 3.84% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.85% | ||
| OM | 26.72% | ||
| PM (TTM) | 15.79% | ||
| GM | 83.64% | ||
| FCFM | N/A |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.29%
ROIC(5y)4.05%
ROICexc(3y)4.52%
ROICexc(5y)4.25%
ROICexgc(3y)5.34%
ROICexgc(5y)5.03%
ROCE(3y)5.8%
ROCE(5y)5.47%
ROICexcg growth 3Y-1.61%
ROICexcg growth 5Y-0.1%
ROICexc growth 3Y0.17%
ROICexc growth 5Y-0.62%
OM growth 3Y10.3%
OM growth 5Y3.8%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 375.39% | ||
| Cap/Sales | 50.64% | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.36 |
F-Score6
WACC6.74%
ROIC/WACC0.57
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%-14.77%
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y8.58%
EPS Next 5Y7.57%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
Revenue Next Year-4.88%
Revenue Next 2Y2.13%
Revenue Next 3Y3.88%
Revenue Next 5Y7.46%
EBIT growth 1Y-17.5%
EBIT growth 3Y10.53%
EBIT growth 5Y8.77%
EBIT Next Year53.93%
EBIT Next 3Y24.4%
EBIT Next 5Y17.59%
FCF growth 1Y-381.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.24%
OCF growth 3Y2.21%
OCF growth 5Y7.68%