NATIONAL GRID PLC-SP ADR (NGG) Stock Fundamental Analysis
NYSE:NGG - New York Stock Exchange, Inc. - US6362744095 - ADR - Currency: USD
NGG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
In the past year NGG had a positive cash flow from operations.
NGG had positive earnings in each of the past 5 years.
In the past 5 years NGG always reported a positive cash flow from operatings.
1.2 Ratios
NGG has a worse Return On Assets (1.78%) than 84.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.05%, NGG is doing worse than 84.00% of the companies in the same industry.
The Return On Invested Capital of NGG (4.20%) is better than 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 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 5.05% | ||
| ROIC | 4.2% |
ROA(3y)4.41%
ROA(5y)3.51%
ROE(3y)14.65%
ROE(5y)11.72%
ROIC(3y)4.26%
ROIC(5y)4.05%
1.3 Margins
NGG's Profit Margin of 9.36% is on the low side compared to the rest of the industry. NGG is outperformed by 80.00% of its industry peers.
NGG's Profit Margin has improved in the last couple of years.
NGG has a better Operating Margin (27.22%) than 96.00% of its industry peers.
NGG's Operating Margin has improved in the last couple of years.
NGG's Gross Margin of 88.19% is amongst the best of the industry. NGG outperforms 92.00% of its industry peers.
In the last couple of years the Gross Margin of NGG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.22% | ||
| PM (TTM) | 9.36% | ||
| GM | 88.19% |
OM growth 3Y16.86%
OM growth 5Y5.41%
PM growth 3Y-1.31%
PM growth 5Y2.66%
GM growth 3Y2.36%
GM growth 5Y2.43%
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
The number of shares outstanding for NGG has been reduced compared to 5 years ago.
NGG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that NGG is in the distress zone and has some risk of bankruptcy.
NGG has a better Altman-Z score (1.44) than 100.00% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that NGG has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.19, NGG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.67
WACC6.26%
2.3 Liquidity
A Current Ratio of 1.61 indicates that NGG should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.61, NGG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NGG has a Quick Ratio of 1.54. This is a normal value and indicates that NGG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.54, NGG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.01% over the past year.
NGG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.97% yearly.
Looking at the last year, NGG shows a decrease in Revenue. The Revenue has decreased by -6.68% in the last year.
Measured over the past years, NGG shows a small growth in Revenue. The Revenue has been growing by 5.86% on average per year.
EPS 1Y (TTM)36.01%
EPS 3Y12.62%
EPS 5Y4.97%
EPS Q2Q%16.69%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
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 3.89% on average per year.
Based on estimates for the next years, NGG will show a quite strong growth in Revenue. The Revenue will grow by 8.42% on average per year.
EPS Next Y-4.58%
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
EPS Next 5Y3.89%
Revenue Next Year-5.52%
Revenue Next 2Y-1.98%
Revenue Next 3Y1.78%
Revenue Next 5Y8.42%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 14.49, which indicates a correct valuation of NGG.
Based on the Price/Earnings ratio, NGG is valued a bit cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 23.99. NGG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.28, 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.
The average S&P500 Price/Forward Earnings ratio is at 20.35. NGG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NGG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
The decent profitability rating of NGG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.91
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.13%, NGG is a good candidate for dividend investing.
NGG's Dividend Yield is rather good when compared to the industry average which is at 3.66. NGG pays more dividend than 96.00% of the companies in the same industry.
NGG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
5.2 History
On average, the dividend of NGG grows each year by 10.20%, 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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
66.56% of the earnings are spent on dividend by NGG. This is not a sustainable payout ratio.
The dividend of NGG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.56%
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
72.57
+0.27 (+0.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner Change0.75%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap71.08B
Analysts82.5
Price Target79.43 (9.45%)
Short Float %0.18%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend2.85
Dividend Growth(5Y)10.2%
DP66.56%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)3.57%
PT rev (3m)7.06%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.14%
EPS NY rev (3m)20.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 15.28 | ||
| P/S | 2.75 | ||
| P/FCF | N/A | ||
| P/OCF | 8.18 | ||
| P/B | 1.48 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 11.51 |
EPS(TTM)5.01
EY6.9%
EPS(NY)4.75
Fwd EY6.55%
FCF(TTM)-2.33
FCFYN/A
OCF(TTM)8.87
OCFY12.22%
SpS26.38
BVpS48.93
TBVpS31.51
PEG (NY)N/A
PEG (5Y)2.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 5.05% | ||
| ROCE | 5.66% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.56% | ||
| ROICexgc | 5.36% | ||
| OM | 27.22% | ||
| PM (TTM) | 9.36% | ||
| GM | 88.19% | ||
| FCFM | N/A |
ROA(3y)4.41%
ROA(5y)3.51%
ROE(3y)14.65%
ROE(5y)11.72%
ROIC(3y)4.26%
ROIC(5y)4.05%
ROICexc(3y)4.45%
ROICexc(5y)4.22%
ROICexgc(3y)5.36%
ROICexgc(5y)4.97%
ROCE(3y)5.83%
ROCE(5y)5.55%
ROICexcg growth 3Y17.73%
ROICexcg growth 5Y2.51%
ROICexc growth 3Y15.54%
ROICexc growth 5Y1.88%
OM growth 3Y16.86%
OM growth 5Y5.41%
PM growth 3Y-1.31%
PM growth 5Y2.66%
GM growth 3Y2.36%
GM growth 5Y2.43%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 390.94% | ||
| Cap/Sales | 42.45% | ||
| Interest Coverage | 2.84 | ||
| Cash Conversion | 88.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.44 |
F-Score6
WACC6.26%
ROIC/WACC0.67
Cap/Depr(3y)337.32%
Cap/Depr(5y)319.42%
Cap/Sales(3y)33.24%
Cap/Sales(5y)33.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.01%
EPS 3Y12.62%
EPS 5Y4.97%
EPS Q2Q%16.69%
EPS Next Y-4.58%
EPS Next 2Y-0.16%
EPS Next 3Y2.84%
EPS Next 5Y3.89%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y13.25%
Revenue growth 5Y5.86%
Sales Q2Q%-6.22%
Revenue Next Year-5.52%
Revenue Next 2Y-1.98%
Revenue Next 3Y1.78%
Revenue Next 5Y8.42%
EBIT growth 1Y7.96%
EBIT growth 3Y32.35%
EBIT growth 5Y11.58%
EBIT Next Year57.7%
EBIT Next 3Y24.36%
EBIT Next 5Y18.1%
FCF growth 1Y-1086.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.85%
OCF growth 3Y15.73%
OCF growth 5Y9.86%