NATIONAL GRID PLC (NNGF.DE) Stock Fundamental Analysis
FRA:NNGF - Deutsche Boerse Ag - GB00BDR05C01 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to NNGF. NNGF was compared to 13 industry peers in the Multi-Utilities industry. NNGF has an average financial health and profitability rating. NNGF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NNGF had positive earnings in the past year.
NNGF had a positive operating cash flow in the past year.
NNGF had positive earnings in each of the past 5 years.
NNGF 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%, NNGF is in line with its industry, outperforming 53.85% of the companies in the same 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 84.62% of its industry peers.
The Return On Invested Capital of NNGF (3.70%) is worse than 92.31% of its industry peers.
NNGF had an Average Return On Invested Capital over the past 3 years of 4.19%. This is below the industry average of 6.45%.
| 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
NNGF has a better Profit Margin (15.79%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of NNGF has grown nicely.
NNGF's Operating Margin of 25.74% is amongst the best of the industry. NNGF outperforms 100.00% of its industry peers.
NNGF'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), NNGF is destroying value.
Compared to 1 year ago, NNGF has more shares outstanding
The number of shares outstanding for NNGF has been increased compared to 5 years ago.
Compared to 1 year ago, NNGF has an improved debt to assets ratio.
2.2 Solvency
NNGF has an Altman-Z score of 0.97. This is a bad value and indicates that NNGF is not financially healthy and even has some risk of bankruptcy.
NNGF has a Altman-Z score of 0.97. This is comparable to the rest of the industry: NNGF outperforms 53.85% of its industry peers.
NNGF has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
NNGF has a better Debt to Equity ratio (1.13) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.85
WACC4.36%
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's Quick ratio of 1.30 is amongst the best of the industry. NNGF outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
NNGF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.95%.
Measured over the past 5 years, NNGF shows a small growth in Earnings Per Share. The EPS has been growing by 5.87% on average per year.
NNGF shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
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
Based on estimates for the next years, NNGF will show a small growth in Earnings Per Share. The EPS will grow by 7.31% on average per year.
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
The Price/Earnings ratio is 14.14, which indicates a correct valuation of NNGF.
Compared to the rest of the industry, the Price/Earnings ratio of NNGF indicates a slightly more expensive valuation: NNGF is more expensive than 76.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, NNGF is valued a bit cheaper.
NNGF is valuated correctly with a Price/Forward Earnings ratio of 13.54.
The rest of the industry has a similar Price/Forward Earnings ratio as NNGF.
NNGF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
84.62% of the companies in the same industry are cheaper than NNGF, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.91
PEG (5Y)2.41
EPS Next 2Y6.96%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
NNGF has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 5.13, NNGF has a dividend in line with its industry peers.
NNGF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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 (6/10/2025, 7:00:00 PM)
12.3
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap12.06B
Analysts80
Price Target14.18 (15.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend0.42
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)3.69%
PT rev (3m)-0.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
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 | 14.14 | ||
| Fwd PE | 13.54 | ||
| P/S | 0.56 | ||
| P/FCF | N/A | ||
| P/OCF | 1.53 | ||
| P/B | 0.27 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)0.87
EY7.07%
EPS(NY)0.91
Fwd EY7.38%
FCF(TTM)-3.16
FCFYN/A
OCF(TTM)8.06
OCFY65.5%
SpS22.15
BVpS45.56
TBVpS29.78
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 | 0.97 |
F-Score7
WACC4.36%
ROIC/WACC0.85
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 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-20.54%
EBIT growth 3Y6.93%
EBIT growth 5Y6.64%
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%