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. 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.
Each year in the past 5 years NNGF has been profitable.
Each year in the past 5 years NNGF had a positive operating cash flow.
1.2 Ratios
NNGF has a Return On Assets (2.72%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.68%, NNGF is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
The Return On Invested Capital of NNGF (3.70%) is worse than 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NNGF 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 Profit Margin of 15.79%. This is amongst the best in the industry. NNGF outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of NNGF has grown nicely.
NNGF has a better Operating Margin (25.74%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNGF is destroying value.
NNGF has more shares outstanding than it did 1 year ago.
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
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 53.85% 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.
With an excellent Debt to Equity ratio value of 1.13, NNGF belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.85
WACC4.37%
2.3 Liquidity
NNGF has a Current Ratio of 1.35. This is a normal value and indicates that NNGF is financially healthy and should not expect problems in meeting 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.
A Quick Ratio of 1.30 indicates that NNGF should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.30, NNGF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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%.
NNGF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.87% yearly.
NNGF shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
Measured over the past years, NNGF shows a small growth in Revenue. The Revenue has been growing by 4.80% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 14.65, the valuation of NNGF can be described as correct.
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.
NNGF is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.89, the valuation of NNGF can be described as correct.
Based on the Price/Forward Earnings ratio, NNGF is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
NNGF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
NNGF's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NNGF is more expensive than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NNGF does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.01
PEG (5Y)2.49
EPS Next 2Y6.96%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.51%, NNGF is a good candidate for dividend investing.
NNGF's Dividend Yield is comparable with the industry average which is at 5.13.
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
The dividend of NNGF is nicely growing with an annual growth rate of 10.55%!
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 (6/12/2025, 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 Owners63.21%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap12.35B
Analysts80
Price Target14.18 (12.54%)
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 | 14.65 | ||
| Fwd PE | 13.89 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | 1.57 | ||
| P/B | 0.28 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)0.86
EY6.83%
EPS(NY)0.91
Fwd EY7.2%
FCF(TTM)-3.15
FCFYN/A
OCF(TTM)8.05
OCFY63.85%
SpS22.12
BVpS45.5
TBVpS29.73
PEG (NY)3.01
PEG (5Y)2.49
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 | 0.98 |
F-Score7
WACC4.37%
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%