(NGG) National Grid - Ratings and Ratios
Electricity, Gas, Transmission, Distribution
Description: NGG National Grid
National Grid PLC ADR (NYSE:NGG) is a multi-utility company that engages in the transmission and distribution of electricity and gas across various regions, including the UK, New England, and New York. The companys diverse operational segments enable it to provide essential services to a large customer base, generating a stable source of revenue.
From a strategic perspective, National Grids business model is characterized by its regulated utility operations, which provide a predictable cash flow profile. The companys UK Electricity Transmission and Distribution segments, as well as its New England and New York operations, are subject to regulatory frameworks that dictate pricing and returns on investment. This regulatory environment can impact the companys profitability, but it also provides a degree of stability and predictability.
To further evaluate National Grids performance, key performance indicators (KPIs) such as revenue growth, operating margins, and return on equity (RoE) can be examined. With a RoE of 15.62%, the company demonstrates a reasonable ability to generate returns for shareholders. Additionally, the dividend yield, payout ratio, and interest coverage ratio can provide insights into the companys financial health and ability to service its debt. A dividend yield of around 4-5% and a payout ratio of 60-70% would indicate a relatively attractive income profile, while an interest coverage ratio above 3-4 would suggest a manageable debt burden.
National Grids growth prospects are likely tied to its ability to invest in its infrastructure and capitalize on emerging trends in the energy sector, such as the transition to renewable energy sources and the adoption of smart grid technologies. The companys National Grid Ventures segment, which focuses on transmission services through electricity interconnectors and LNG importation, may play a key role in driving growth and diversification. By examining KPIs such as capital expenditure as a percentage of revenue and the growth rate of its regulated asset base, investors can gain a better understanding of the companys growth prospects.
NGG Stock Overview
| Market Cap in USD | 68,387m |
| Sub-Industry | Multi-Utilities |
| IPO / Inception | 1999-10-07 |
NGG Stock Ratings
| Growth Rating | 69.3% |
| Fundamental | 62.5% |
| Dividend Rating | 65.1% |
| Return 12m vs S&P 500 | -10.1% |
| Analyst Rating | 4.0 of 5 |
NGG Dividends
| Dividend Yield 12m | 4.53% |
| Yield on Cost 5y | 7.78% |
| Annual Growth 5y | 17.44% |
| Payout Consistency | 92.5% |
| Payout Ratio | 5.2% |
NGG Growth Ratios
| Growth Correlation 3m | -39% |
| Growth Correlation 12m | 67.3% |
| Growth Correlation 5y | 81.3% |
| CAGR 5y | 14.30% |
| CAGR/Max DD 3y | 0.67 |
| CAGR/Mean DD 3y | 2.68 |
| Sharpe Ratio 12m | 0.71 |
| Alpha | -11.66 |
| Beta | 0.942 |
| Volatility | 21.04% |
| Current Volume | 351.1k |
| Average Volume 20d | 540.2k |
| Stop Loss | 69.4 (-3.1%) |
| Signal | 0.49 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (5.19b TTM) > 0 and > 6% of Revenue (6% = 2.29b TTM) |
| FCFTA -0.02 (>2.0%) and ΔFCFTA -3.29pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 9.71% (prev -2.10%; Δ 11.80pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 13.16b > Net Income 5.19b (YES >=105%, WARN >=100%) |
| Net Debt (46.36b) to EBITDA (14.34b) ratio: 3.23 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.35 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (982.2m) change vs 12m ago NaN% (target <= -2.0% for YES) |
| Gross Margin 62.57% (prev 33.43%; Δ 29.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 37.28% (prev 28.24%; Δ 9.04pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.80 (EBITDA TTM 14.34b / Interest Expense TTM 1.81b) >= 6 (WARN >= 3) |
Altman Z'' 2.76
| (A) 0.03 = (Total Current Assets 14.33b - Total Current Liabilities 10.62b) / Total Assets 106.74b |
| (B) 0.38 = Retained Earnings (Balance) 40.11b / Total Assets 106.74b |
| (C) 0.10 = EBIT TTM 10.47b / Avg Total Assets 102.53b |
| (D) 0.59 = Book Value of Equity 40.74b / Total Liabilities 68.92b |
| Total Rating: 2.76 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 62.50
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield -2.77% = -1.39 |
| 3. FCF Margin -6.53% = -2.45 |
| 4. Debt/Equity 1.24 = 1.78 |
| 5. Debt/Ebitda 3.26 = -2.09 |
| 6. ROIC - WACC 9.31% = 11.64 |
| 7. RoE 15.62% = 1.30 |
| 8. Rev. Trend 44.30% = 2.22 |
| 9. Rev. CAGR 17.63% = 2.20 |
| 10. EPS Trend -28.82% = -0.72 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of NGG shares?
Over the past week, the price has changed by +1.70%, over one month by +0.27%, over three months by +0.31% and over the past year by +6.83%.
Is National Grid a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NGG is around 76.36 USD . This means that NGG is currently overvalued and has a potential downside of 6.62%.
Is NGG a buy, sell or hold?
- Strong Buy: 2
- Buy: 1
- Hold: 0
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the NGG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 79.5 | 10.9% |
| Analysts Target Price | 79.5 | 10.9% |
| ValueRay Target Price | 82.5 | 15.2% |
Last update: 2025-09-06 02:46
NGG Fundamental Data Overview
CCE Cash And Equivalents = 6.93b GBP (Cash And Short Term Investments, last quarter)
P/E Trailing = 16.9337
P/E Forward = 13.369
P/S = 3.7211
P/B = 1.3518
P/EG = 1.2863
Beta = 0.323
Revenue TTM = 38.23b GBP
EBIT TTM = 10.47b GBP
EBITDA TTM = 14.34b GBP
Long Term Debt = 42.17b GBP (from longTermDebt, last quarter)
Short Term Debt = 4.54b GBP (from shortTermDebt, last quarter)
Debt = 46.71b GBP (Calculated: Short Term 4.54b + Long Term 42.17b)
Net Debt = 46.36b GBP (from netDebt column, last quarter)
Enterprise Value = 90.06b GBP (50.28b + Debt 46.71b - CCE 6.93b)
Interest Coverage Ratio = 5.80 (Ebit TTM 10.47b / Interest Expense TTM 1.81b)
FCF Yield = -2.77% (FCF TTM -2.50b / Enterprise Value 90.06b)
FCF Margin = -6.53% (FCF TTM -2.50b / Revenue TTM 38.23b)
Net Margin = 13.58% (Net Income TTM 5.19b / Revenue TTM 38.23b)
Gross Margin = 62.57% ((Revenue TTM 38.23b - Cost of Revenue TTM 14.31b) / Revenue TTM)
Tobins Q-Ratio = 2.21 (Enterprise Value 90.06b / Book Value Of Equity 40.74b)
Interest Expense / Debt = 0.36% (Interest Expense 169.0m / Debt 46.71b)
Taxrate = 22.49% (821.0m / 3.65b)
NOPAT = 8.12b (EBIT 10.47b * (1 - 22.49%))
Current Ratio = 1.35 (Total Current Assets 14.33b / Total Current Liabilities 10.62b)
Debt / Equity = 1.24 (Debt 46.71b / last Quarter total Stockholder Equity 37.80b)
Debt / EBITDA = 3.26 (Net Debt 46.36b / EBITDA 14.34b)
Debt / FCF = -18.70 (Debt 46.71b / FCF TTM -2.50b)
Total Stockholder Equity = 33.24b (last 4 quarters mean)
RoA = 4.86% (Net Income 5.19b, Total Assets 106.74b )
RoE = 15.62% (Net Income TTM 5.19b / Total Stockholder Equity 33.24b)
RoCE = 13.89% (Ebit 10.47b / (Equity 33.24b + L.T.Debt 42.17b))
RoIC = 14.37% (NOPAT 8.12b / Invested Capital 56.49b)
WACC = 5.05% (E(50.28b)/V(96.99b) * Re(9.49%)) + (D(46.71b)/V(96.99b) * Rd(0.36%) * (1-Tc(0.22)))
Shares Correlation 3-Years: 83.09 | Cagr: 3.00%
Discount Rate = 9.49% (= CAPM, Blume Beta Adj.)
Fair Price DCF = unknown (Cash Flow -2.50b)
Revenue Correlation: 44.30 | Revenue CAGR: 17.63%
Rev Growth-of-Growth: -24.87
EPS Correlation: -28.82 | EPS CAGR: 0.0%
EPS Growth-of-Growth: 173.3
Additional Sources for NGG Stock
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