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 4 out of 10 to NGG. NGG was compared to 25 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of NGG get a neutral evaluation. Nothing too spectacular is happening here. NGG is valied quite expensively at the moment, while 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.
NGG had a positive operating cash flow in the past year.
In the past 5 years NGG has always been profitable.
NGG had a positive operating cash flow in each of the past 5 years.
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's Return On Invested Capital of 3.70% is on the low side compared to the rest of the industry. NGG is outperformed by 68.00% 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 3.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROIC | 3.7% |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.19%
ROIC(5y)3.99%
1.3 Margins
NGG has a Profit Margin of 15.79%. This is amongst the best in the industry. NGG outperforms 84.00% of its industry peers.
In the last couple of years the Profit Margin of NGG has grown nicely.
The Operating Margin of NGG (25.74%) is better than 92.00% of its industry peers.
NGG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.74% | ||
| PM (TTM) | 15.79% | ||
| GM | N/A |
OM growth 3Y6.7%
OM growth 5Y1.75%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NGG is destroying value.
Compared to 1 year ago, NGG has more shares outstanding
NGG has more shares outstanding than it did 5 years ago.
NGG has a better debt/assets ratio than last year.
2.2 Solvency
NGG has an Altman-Z score of 1.33. This is a bad value and indicates that NGG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NGG (1.33) is better than 96.00% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that NGG has dependencies on debt financing.
The Debt to Equity ratio of NGG (1.13) is better than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.43
WACC8.64%
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.
NGG has a better Quick ratio (1.30) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for NGG have decreased by -4.95% in the last year.
NGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.87% yearly.
Looking at the last year, NGG shows a decrease in Revenue. The Revenue has decreased by -7.42% in the last year.
Measured over the past years, NGG shows a small growth in Revenue. The Revenue has been growing by 4.80% on average per year.
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 6.58% yearly.
NGG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.80% yearly.
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y6.1%
EPS Next 5Y6.58%
Revenue Next Year0.86%
Revenue Next 2Y6.45%
Revenue Next 3Y13.17%
Revenue Next 5Y13.8%
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 stable.
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
Based on the Price/Earnings ratio of 14.14, the valuation of NGG can be described as correct.
Based on the Price/Earnings ratio, NGG is valued a bit cheaper than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, NGG is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.47 indicates a correct valuation of NGG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NGG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NGG to the average of the S&P500 Index (22.25), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGG is valued a bit more expensive than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NGG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.91
PEG (5Y)2.41
EPS Next 2Y6.96%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.53%, NGG is a good candidate for dividend investing.
NGG's Dividend Yield is a higher than the industry average which is at 3.68.
Compared to an average S&P500 Dividend Yield of 2.38, NGG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
5.2 History
On average, the dividend of NGG grows each year by 10.55%, which is quite nice.
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
NGG pays out 52.69% of its income as dividend. 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 3Y6.1%
70.7
-0.33 (-0.46%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner Change10.01%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap69.30B
Analysts82.5
Price Target79.43 (12.35%)
Short Float %0.21%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
Yearly Dividend2.41
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)7.06%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.88%
EPS NY rev (3m)7.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 13.47 | ||
| P/S | 2.78 | ||
| P/FCF | N/A | ||
| P/OCF | 7.64 | ||
| P/B | 1.35 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)5
EY7.07%
EPS(NY)5.25
Fwd EY7.42%
FCF(TTM)-3.63
FCFYN/A
OCF(TTM)9.25
OCFY13.09%
SpS25.44
BVpS52.32
TBVpS34.2
PEG (NY)2.91
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROCE | 4.92% | ||
| ROIC | 3.7% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 4.67% | ||
| OM | 25.74% | ||
| PM (TTM) | 15.79% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.19%
ROIC(5y)3.99%
ROICexc(3y)4.41%
ROICexc(5y)4.19%
ROICexgc(3y)5.23%
ROICexgc(5y)4.96%
ROCE(3y)5.63%
ROCE(5y)5.37%
ROICexcg growth 3Y-3.9%
ROICexcg growth 5Y-1.49%
ROICexc growth 3Y-2.29%
ROICexc growth 5Y-2.09%
OM growth 3Y6.7%
OM growth 5Y1.75%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 427.86% | ||
| Cap/Sales | 50.64% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 96.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.33 |
F-Score7
WACC8.64%
ROIC/WACC0.43
Cap/Depr(3y)378.95%
Cap/Depr(5y)345.24%
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 3Y6.1%
EPS Next 5Y6.58%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-8.31%
Revenue Next Year0.86%
Revenue Next 2Y6.45%
Revenue Next 3Y13.17%
Revenue Next 5Y13.8%
EBIT growth 1Y-20.54%
EBIT growth 3Y6.93%
EBIT growth 5Y6.64%
EBIT Next Year53.93%
EBIT Next 3Y24.09%
EBIT Next 5Y17%
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%