NATIONAL GRID PLC-SP ADR (NGG)
US6362744095 - ADR
We assign a fundamental rating of 6 out of 10 to NGG. NGG was compared to 26 industry peers in the Multi-Utilities industry. While NGG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NGG has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years NGG has 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 8.14%, NGG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 26.04%, NGG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.01%, NGG is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
NGG had an Average Return On Invested Capital over the past 3 years of 3.45%. This is in line with the industry average of 3.59%.
The 3 year average ROIC (3.45%) for NGG is below the current ROIC(4.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.14% | ||
| ROE | 26.04% | ||
| ROIC | 4.01% |
ROA(3y)4.44%
ROA(5y)3.52%
ROE(3y)14.85%
ROE(5y)11.75%
ROIC(3y)3.45%
ROIC(5y)3.72%
1.3 Margins
NGG's Profit Margin of 37.04% is amongst the best of the industry. NGG outperforms 100.00% of its industry peers.
NGG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.98%, NGG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
NGG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 84.23%, NGG belongs to the top of the industry, outperforming 92.31% 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 | 23.98% | ||
| PM (TTM) | 37.04% | ||
| GM | 84.23% |
OM growth 3Y-5.58%
OM growth 5Y-2.64%
PM growth 3Y60.58%
PM growth 5Y9.11%
GM growth 3Y0.25%
GM growth 5Y0.38%
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.
Compared to 5 years ago, NGG has more shares outstanding
Compared to 1 year ago, NGG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that NGG is in the distress zone and has some risk of bankruptcy.
NGG has a better Altman-Z score (1.25) than 96.15% of its industry peers.
NGG has a debt to FCF ratio of 125.83. This is a negative value and a sign of low solvency as NGG would need 125.83 years to pay back of all of its debts.
NGG has a Debt to FCF ratio of 125.83. This is amongst the best in the industry. NGG outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that NGG has dependencies on debt financing.
The Debt to Equity ratio of NGG (1.43) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 125.83 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.74
WACC5.41%
2.3 Liquidity
A Current Ratio of 0.93 indicates that NGG may have some problems paying its short term obligations.
NGG's Current ratio of 0.93 is fine compared to the rest of the industry. NGG outperforms 69.23% of its industry peers.
A Quick Ratio of 0.82 indicates that NGG may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.82, NGG is doing good in the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
NGG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.91%.
NGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.47% yearly.
NGG shows a decrease in Revenue. In the last year, the revenue decreased by -0.28%.
Measured over the past years, NGG shows a small growth in Revenue. The Revenue has been growing by 7.27% on average per year.
EPS 1Y (TTM)3.91%
EPS 3Y5.01%
EPS 5Y1.47%
EPS growth Q2Q4.38%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y14.21%
Revenue growth 5Y7.27%
Revenue growth Q2Q-10.11%
3.2 Future
Based on estimates for the next years, NGG will show a small growth in Earnings Per Share. The EPS will grow by 7.52% on average per year.
The Revenue is expected to grow by 9.52% on average over the next years. This is quite good.
EPS Next Y9.54%
EPS Next 2Y9.03%
EPS Next 3Y7.13%
EPS Next 5Y7.52%
Revenue Next Year5.51%
Revenue Next 2Y3.92%
Revenue Next 3Y3.49%
Revenue Next 5Y9.52%
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 accelerating.
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 18.25, NGG is valued on the expensive side.
NGG's Price/Earnings ratio is a bit more expensive when compared to the industry. NGG is more expensive than 65.38% of the companies in the same industry.
NGG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.15.
Based on the Price/Forward Earnings ratio of 15.34, the valuation of NGG can be described as correct.
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 (20.20), we can say NGG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NGG is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NGG indicates a rather cheap valuation: NGG is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.3 | ||
| EV/EBITDA | 11.98 |
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.
The excellent profitability rating of NGG may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)12.39
EPS Next 2Y9.03%
EPS Next 3Y7.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, NGG is a good candidate for dividend investing.
NGG's Dividend Yield is rather good when compared to the industry average which is at 4.08. NGG pays more dividend than 84.62% of the companies in the same industry.
NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
The dividend of NGG decreases each year by -19.78%.
NGG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-19.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.64% of the earnings are spent on dividend by NGG. This is a low number and sustainable payout ratio.
DP23.64%
EPS Next 2Y9.03%
EPS Next 3Y7.13%
NATIONAL GRID PLC-SP ADR
NYSE:NGG (5/17/2024, 7:16:01 PM)
After market: 72.83 0 (0%)72.83
-0.48 (-0.65%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap54.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 15.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.91
PEG (5Y)12.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.14% | ||
| ROE | 26.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.98% | ||
| PM (TTM) | 37.04% | ||
| GM | 84.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.91%
EPS 3Y5.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y14.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y