NATIONAL GRID PLC (NNGF.DE) Stock Fundamental Analysis
FRA:NNGF - Deutsche Boerse Ag - GB00BDR05C01 - Common Stock - Currency: EUR
NNGF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of NNGF get a neutral evaluation. Nothing too spectacular is happening here. NNGF is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NNGF was profitable.
In the past year NNGF had a positive cash flow from operations.
NNGF had positive earnings in each of the past 5 years.
In the past 5 years NNGF always reported a positive cash flow from operatings.
1.2 Ratios
NNGF has a Return On Assets (2.72%) which is comparable to the rest of the industry.
NNGF's Return On Equity of 7.68% is on the low side compared to the rest of the industry. NNGF is outperformed by 83.33% of its industry peers.
With a Return On Invested Capital value of 3.84%, NNGF is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
NNGF had an Average Return On Invested Capital over the past 3 years of 4.29%. This is below the industry average of 6.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROIC | 3.84% |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.29%
ROIC(5y)4.05%
1.3 Margins
Looking at the Profit Margin, with a value of 15.79%, NNGF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NNGF's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.72%, NNGF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NNGF has grown nicely.
NNGF's Gross Margin of 83.64% is amongst the best of the industry. NNGF outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of NNGF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.72% | ||
| PM (TTM) | 15.79% | ||
| GM | 83.64% |
OM growth 3Y10.3%
OM growth 5Y3.8%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NNGF is destroying value.
NNGF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NNGF has more shares outstanding
NNGF has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that NNGF is in the distress zone and has some risk of bankruptcy.
NNGF has a Altman-Z score of 0.98. This is comparable to the rest of the industry: NNGF outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that NNGF has dependencies on debt financing.
NNGF's Debt to Equity ratio of 1.13 is amongst the best of the industry. NNGF outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.89
WACC4.32%
2.3 Liquidity
A Current Ratio of 1.35 indicates that NNGF should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, NNGF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NNGF has a Quick Ratio of 1.30. This is a normal value and indicates that NNGF is financially healthy and should not expect problems in meeting its short term obligations.
NNGF 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 NNGF have decreased by -4.95% in the last year.
NNGF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.87% yearly.
The Revenue has decreased by -7.42% in the past year.
NNGF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.80% yearly.
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
The Earnings Per Share is expected to grow by 7.31% on average over the next years.
Based on estimates for the next years, NNGF will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y8.14%
EPS Next 5Y7.31%
Revenue Next Year0.86%
Revenue Next 2Y6.45%
Revenue Next 3Y5.7%
Revenue Next 5Y7.66%
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
A Price/Earnings ratio of 14.82 indicates a correct valuation of NNGF.
75.00% of the companies in the same industry are cheaper than NNGF, based on the Price/Earnings ratio.
NNGF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 14.19, which indicates a correct valuation of NNGF.
Based on the Price/Forward Earnings ratio, NNGF is valued a bit more expensive than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NNGF to the average of the S&P500 Index (36.71), we can say NNGF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NNGF is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NNGF may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)2.52
EPS Next 2Y6.96%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, NNGF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.00, NNGF is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, NNGF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
5.2 History
On average, the dividend of NNGF grows each year by 10.55%, which is quite nice.
Dividend Growth(5Y)10.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NNGF pays out 52.69% of its income as dividend. This is a bit on the high side, but may be sustainable.
NNGF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.69%
EPS Next 2Y6.96%
EPS Next 3Y8.14%
FRA:NNGF (7/22/2025, 7:00:00 PM)
12.6
+0.2 (+1.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners65.29%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap12.35B
Analysts80
Price Target14.11 (11.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend0.41
Dividend Growth(5Y)10.55%
DP52.69%
Div Incr Years0
Div Non Decr Years0
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)-0.48%
PT rev (3m)1.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 14.19 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | 1.6 | ||
| P/B | 0.28 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)0.85
EY6.75%
EPS(NY)0.89
Fwd EY7.05%
FCF(TTM)-3.09
FCFYN/A
OCF(TTM)7.88
OCFY62.52%
SpS21.66
BVpS44.55
TBVpS29.12
PEG (NY)3.05
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.68% | ||
| ROCE | 5.11% | ||
| ROIC | 3.84% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.85% | ||
| OM | 26.72% | ||
| PM (TTM) | 15.79% | ||
| GM | 83.64% | ||
| FCFM | N/A |
ROA(3y)4.49%
ROA(5y)3.68%
ROE(3y)13.91%
ROE(5y)11.98%
ROIC(3y)4.29%
ROIC(5y)4.05%
ROICexc(3y)4.52%
ROICexc(5y)4.25%
ROICexgc(3y)5.34%
ROICexgc(5y)5.03%
ROCE(3y)5.8%
ROCE(5y)5.47%
ROICexcg growth 3Y-1.61%
ROICexcg growth 5Y-0.1%
ROICexc growth 3Y0.17%
ROICexc growth 5Y-0.62%
OM growth 3Y10.3%
OM growth 5Y3.8%
PM growth 3Y7.01%
PM growth 5Y12.68%
GM growth 3Y1.78%
GM growth 5Y0.92%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 375.39% | ||
| Cap/Sales | 50.64% | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 0.98 |
F-Score6
WACC4.32%
ROIC/WACC0.89
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)-4.95%
EPS 3Y6.08%
EPS 5Y5.87%
EPS Q2Q%-14.77%
EPS Next Y4.87%
EPS Next 2Y6.96%
EPS Next 3Y8.14%
EPS Next 5Y7.31%
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 3Y5.7%
Revenue Next 5Y7.66%
EBIT growth 1Y-17.5%
EBIT growth 3Y10.53%
EBIT growth 5Y8.77%
EBIT Next Year53.93%
EBIT Next 3Y24.4%
EBIT Next 5Y17.59%
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%