NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGG - US6362744095 - ADR
77.47 USD
-0.3 (-0.39%)
Taking everything into account, NGG scores 4 out of 10 in our fundamental rating. NGG was compared to 26 industry peers in the Multi-Utilities industry. NGG scores excellent on profitability, but there are concerns on its financial health. NGG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NGG had positive earnings in the past year.
NGG had a positive operating cash flow in the past year.
NGG had positive earnings in each of the past 5 years.
Each year in the past 5 years NGG had a positive operating cash flow.
1.2 Ratios
NGG has a better Return On Assets (2.77%) than 80.77% of its industry peers.
NGG has a Return On Equity of 7.72%. This is in the lower half of the industry: NGG underperforms 69.23% of its industry peers.
The Return On Invested Capital of NGG (4.11%) is better than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.94%.
| 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
With an excellent Profit Margin value of 16.43%, NGG belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Profit Margin of NGG has grown nicely.
NGG has a Operating Margin of 29.57%. This is amongst the best in the industry. NGG outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of NGG has grown nicely.
NGG has a better Gross Margin (87.92%) than 92.31% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NGG is destroying value.
Compared to 1 year ago, NGG has more shares outstanding
Compared to 5 years ago, NGG has more shares outstanding
The debt/assets ratio for NGG has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.38, NGG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NGG has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
NGG has a Debt to Equity ratio of 1.14. This is amongst the best in the industry. NGG outperforms 84.62% of its industry peers.
| 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.
NGG has a better Current ratio (0.97) than 61.54% of its industry peers.
A Quick Ratio of 0.90 indicates that NGG may have some problems paying its short term obligations.
NGG's Quick ratio of 0.90 is amongst the best of the industry. NGG outperforms 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
The Earnings Per Share is expected to grow by 7.98% on average over the next years.
NGG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
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 15.34, NGG is valued correctly.
Based on the Price/Earnings ratio, NGG is valued a bit cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of NGG to the average of the S&P500 Index (26.77), we can say NGG is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.78, which indicates a correct valuation of NGG.
Based on the Price/Forward Earnings ratio, NGG is valued a bit cheaper than 69.23% of the companies in the same industry.
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 | 15.34 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGG is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NGG may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)2
EPS Next 2Y10.83%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 3.88%. Purely for dividend investing, there may be better candidates out there.
NGG's Dividend Yield is slightly below the industry average, which is at 4.62.
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
The dividend of NGG is nicely growing with an annual growth rate of 10.55%!
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
56.13% of the earnings are spent on dividend by NGG. This is a bit on the high side, but may be sustainable.
The dividend of NGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.13%
EPS Next 2Y10.83%
EPS Next 3Y8.82%
NYSE:NGG (12/31/2025, 11:41:27 AM)
77.47
-0.3 (-0.39%)
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 Cap76.87B
Revenue(TTM)17.48B
Net Income(TTM)2.87B
Analysts78.33
Price Target81.8 (5.59%)
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 | 15.34 | ||
| Fwd PE | 12.78 | ||
| P/S | 3.26 | ||
| P/FCF | N/A | ||
| P/OCF | 7.21 | ||
| P/B | 1.53 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)5.05
EY6.52%
EPS(NY)6.06
Fwd EY7.82%
FCF(TTM)-2.56
FCFYN/A
OCF(TTM)10.74
OCFY13.86%
SpS23.78
BVpS50.58
TBVpS32.88
PEG (NY)1.68
PEG (5Y)2
Graham Number75.81
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.