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NG.

National GridLSE:NG. Stock Report

Market Cap

UK£32.5b

7D

0.8%

1Y

-5.0%

Updated

16 Oct, 2021

Data

Company Financials +
NG. fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends5/6

NG. Overview

National Grid plc transmits and distributes electricity and natural gas.

National Grid Competitors

Price History & Performance

Summary of all time highs, changes and price drops for National Grid
Historical stock prices
Current Share PriceUK£8.97
52 Week HighUK£8.05
52 Week LowUK£9.84
Beta0.097
1 Month Change-7.22%
3 Month Change-4.86%
1 Year Change-4.98%
3 Year Change8.38%
5 Year Change-22.89%
Change since IPO206.59%

Recent News & Updates

Sep 28
These 4 Measures Indicate That National Grid (LON:NG.) Is Using Debt Extensively

These 4 Measures Indicate That National Grid (LON:NG.) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 10
Are Investors Undervaluing National Grid plc (LON:NG.) By 22%?

Are Investors Undervaluing National Grid plc (LON:NG.) By 22%?

Does the September share price for National Grid plc ( LON:NG. ) reflect what it's really worth? Today, we will...

Jul 20
Shareholders May Not Be So Generous With National Grid plc's (LON:NG.) CEO Compensation And Here's Why

Shareholders May Not Be So Generous With National Grid plc's (LON:NG.) CEO Compensation And Here's Why

The share price of National Grid plc ( LON:NG. ) has increased significantly over the past few years. However, the...

Shareholder Returns

NG.GB Integrated UtilitiesGB Market
7D0.8%0.7%1.7%
1Y-5.0%7.4%22.9%

Return vs Industry: NG. underperformed the UK Integrated Utilities industry which returned 7.4% over the past year.

Return vs Market: NG. underperformed the UK Market which returned 22.9% over the past year.

Price Volatility

Is NG.'s price volatile compared to industry and market?
NG. volatility
NG. Beta0.097
Industry Beta0.86
Market Beta1

Stable Share Price: NG. is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: NG.'s weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199023,683John Pettigrewhttps://www.nationalgridet.com

National Grid plc transmits and distributes electricity and natural gas. It operates through UK Electricity Transmission, UK Gas Transmission, US Regulated, and National Grid Ventures (NGV) and Other segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,236 kilometers of overhead lines.

National Grid Fundamentals Summary

How do National Grid's earnings and revenue compare to its market cap?
NG. fundamental statistics
Market CapUK£32.45b
Earnings (TTM)UK£1.64b
Revenue (TTM)UK£14.78b

19.8x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NG. income statement (TTM)
RevenueUK£14.78b
Cost of RevenueUK£0
Gross ProfitUK£14.78b
ExpensesUK£13.14b
EarningsUK£1.64b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 18, 2021

Earnings per share (EPS)0.45
Gross Margin100.00%
Net Profit Margin11.10%
Debt/Equity Ratio157.6%

How did NG. perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

106%

Payout Ratio

Valuation

Is National Grid undervalued compared to its fair value and its price relative to the market?

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NG. (£8.97) is trading below our estimate of fair value (£13.19)

Significantly Below Fair Value: NG. is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NG. is poor value based on its PE Ratio (19.8x) compared to the European Integrated Utilities industry average (15.8x).

PE vs Market: NG. is good value based on its PE Ratio (19.8x) compared to the UK market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: NG. is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: NG.'s PB Ratio (1.6x) is in line with the XE Integrated Utilities industry average.


Future Growth

How is National Grid forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NG.'s forecast earnings growth (9.8% per year) is above the savings rate (0.9%).

Earnings vs Market: NG.'s earnings (9.8% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: NG.'s earnings are forecast to grow, but not significantly.

Revenue vs Market: NG.'s revenue (3.9% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: NG.'s revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NG.'s Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has National Grid performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NG. has high quality earnings.

Growing Profit Margin: NG.'s current net profit margins (11.1%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: NG.'s earnings have declined by 6.9% per year over the past 5 years.

Accelerating Growth: NG.'s earnings growth over the past year (28.8%) exceeds its 5-year average (-6.9% per year).

Earnings vs Industry: NG. earnings growth over the past year (28.8%) underperformed the Integrated Utilities industry 28.8%.


Return on Equity

High ROE: NG.'s Return on Equity (8.3%) is considered low.


Financial Health

How is National Grid's financial position?


Financial Position Analysis

Short Term Liabilities: NG.'s short term assets (£9.9B) exceed its short term liabilities (£9.4B).

Long Term Liabilities: NG.'s short term assets (£9.9B) do not cover its long term liabilities (£38.0B).


Debt to Equity History and Analysis

Debt Level: NG.'s debt to equity ratio (157.6%) is considered high.

Reducing Debt: NG.'s debt to equity ratio has reduced from 222.9% to 157.6% over the past 5 years.

Debt Coverage: NG.'s debt is not well covered by operating cash flow (14.3%).

Interest Coverage: NG.'s interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is National Grid current dividend yield, its reliability and sustainability?

5.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NG.'s dividend (5.48%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: NG.'s dividend (5.48%) is in the top 25% of dividend payers in the UK market (4.02%)


Stability and Growth of Payments

Stable Dividend: NG.'s dividends per share have been stable in the past 10 years.

Growing Dividend: NG.'s dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.6%), NG.'s dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NG.'s dividends in 3 years are forecast to be covered by earnings (76.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

John Pettigrew (52 yo)

5.5yrs

Tenure

UK£5,071,000

Compensation

Mr. John Pettigrew, FEI, FIET, has been Chief Executive Officer at National Grid USA since April 01, 2016. Mr. Pettigrew has been the Chief Executive Officer at National Grid plc since April 1, 2016 and as...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.98M) is above average for companies of similar size in the UK market ($USD3.87M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NG.'s management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: NG.'s board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NG. insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

National Grid plc's employee growth, exchange listings and data sources


Key Information

  • Name: National Grid plc
  • Ticker: NG.
  • Exchange: LSE
  • Founded: 1990
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: UK£32.452b
  • Shares outstanding: 3.62b
  • Website: https://www.nationalgridet.com

Number of Employees


Location

  • National Grid plc
  • 1-3 Strand
  • London
  • Greater London
  • WC2N 5EH
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:57
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.