NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NGG - US6362744095 - ADR
76.11 USD
+0.6 (+0.79%)
76.11 USD
0 (0%)
NGG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. While NGG has a great profitability rating, there are quite some concerns on its financial health. NGG is not valued too expensively and it also shows 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.
Each year in the past 5 years NGG has been profitable.
Each year in the past 5 years NGG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 2.77%, NGG belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
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 comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NGG is in line with the industry average of 3.96%.
| 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.
NGG's Profit Margin has improved in the last couple of years.
NGG's Operating Margin of 29.57% is amongst the best of 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.
In the last couple of years the Gross Margin of NGG has remained more or less at the same level.
| 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
NGG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NGG has more shares outstanding
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 1.38, we must say that NGG is in the distress zone and has some risk of bankruptcy.
NGG's Altman-Z score of 1.38 is amongst the best of the industry. NGG outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that NGG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.14, NGG belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.59
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.97 indicates that NGG may have some problems paying its short term obligations.
NGG's Current ratio of 0.97 is fine compared to the rest of the industry. NGG outperforms 61.54% of its industry peers.
NGG has a Quick 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'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
The earnings per share for NGG have decreased by -7.56% in the last year.
The Earnings Per Share has been growing slightly by 5.87% on average over the past years.
The Revenue has decreased by -9.52% in the past 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)-7.56%
EPS 3Y6.08%
EPS 5Y5.87%
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.
Based on estimates for the next years, NGG will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y7.3%
EPS Next 2Y9.72%
EPS Next 3Y9.09%
EPS Next 5Y7.98%
Revenue Next Year-6.87%
Revenue Next 2Y1.49%
Revenue Next 3Y5.51%
Revenue Next 5Y7.8%
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 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
Based on the Price/Earnings ratio of 15.41, the valuation of NGG can be described as correct.
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 (26.31), we can say NGG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.08, NGG is valued correctly.
Based on the Price/Forward Earnings ratio, NGG is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
NGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.41 | ||
| Fwd PE | 13.08 |
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 | 12.46 |
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 decent profitability rating of NGG may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)2.62
EPS Next 2Y9.72%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
NGG has a Yearly Dividend Yield of 4.13%, which is a nice return.
NGG's Dividend Yield is rather good when compared to the industry average which is at 3.38. NGG pays more dividend than 80.77% 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 | 4.13% |
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
NGG pays out 56.13% of its income as dividend. 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 2Y9.72%
EPS Next 3Y9.09%
76.11
+0.6 (+0.79%)
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 Cap75.52B
Revenue(TTM)17.48B
Net Income(TTM)2.87B
Analysts80
Price Target81.03 (6.46%)
Short Float %0.16%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend2.34
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)-0.77%
PT rev (3m)-0.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.41 | ||
| Fwd PE | 13.08 | ||
| P/S | 3.27 | ||
| P/FCF | N/A | ||
| P/OCF | 7.24 | ||
| P/B | 1.54 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)4.94
EY6.49%
EPS(NY)5.82
Fwd EY7.64%
FCF(TTM)-2.51
FCFYN/A
OCF(TTM)10.52
OCFY13.82%
SpS23.28
BVpS49.53
TBVpS32.2
PEG (NY)2.11
PEG (5Y)2.62
Graham Number74.2
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
WACC6.91%
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 3Y6.08%
EPS 5Y5.87%
EPS Q2Q%6.05%
EPS Next Y7.3%
EPS Next 2Y9.72%
EPS Next 3Y9.09%
EPS Next 5Y7.98%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y0.21%
Revenue growth 5Y4.8%
Sales Q2Q%-11.25%
Revenue Next Year-6.87%
Revenue Next 2Y1.49%
Revenue Next 3Y5.51%
Revenue Next 5Y7.8%
EBIT growth 1Y-1.73%
EBIT growth 3Y9.49%
EBIT growth 5Y8.16%
EBIT Next Year53.87%
EBIT Next 3Y25.31%
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 5 / 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 7.3% in the next year.