LSE:NG.

Stock Analysis Report

Executive Summary

National Grid plc transmits and distributes electricity and natural gas.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has National Grid's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

LSE:NG.

-0.5%

GB Integrated Utilities

0.4%

GB Market


1 Year Return

4.8%

LSE:NG.

3.1%

GB Integrated Utilities

-6.2%

GB Market

NG. outperformed the Integrated Utilities industry which returned 3.1% over the past year.

NG. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

NG.IndustryMarket
7 Day-0.5%-0.5%0.4%
30 Day1.5%-2.7%-4.7%
90 Day4.5%2.5%-2.3%
1 Year11.0%4.8%9.0%3.1%-1.7%-6.2%
3 Year-6.9%-27.2%10.8%-7.7%16.8%2.9%
5 Year21.8%-13.0%5.1%-19.8%24.2%-2.3%

Price Volatility Vs. Market

How volatile is National Grid's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Grid undervalued based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

National Grid's share price is below the future cash flow value, but not at a moderate discount (< 20%).

National Grid's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

National Grid is good value based on earnings compared to the Europe Integrated Utilities industry average.

National Grid is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

National Grid is poor value based on expected growth next year.


Price Based on Value of Assets

National Grid is good value based on assets compared to the Europe Integrated Utilities industry average.


Next Steps

Future Growth

How is National Grid expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

National Grid's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

National Grid's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

National Grid's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

National Grid's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

National Grid's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

National Grid is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has National Grid performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

National Grid's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

National Grid's 1-year earnings growth is negative, it can't be compared to the 5-year average.

National Grid's 1-year earnings growth is negative, it can't be compared to the Europe Integrated Utilities industry average.


Return on Equity

National Grid has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

National Grid used its assets more efficiently than the Europe Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

National Grid has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is National Grid's financial position?


Financial Position Analysis

National Grid's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

National Grid's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

National Grid's level of debt (152.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (226% vs 152.5% today).

Debt is not well covered by operating cash flow (14.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

5.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

National Grid's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).

National Grid's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.65%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of National Grid's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

John Pettigrew (50yo)

3.3yrs

Tenure

UK£4,562,000

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

John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

52yo

Average Age

The tenure for the National Grid management team is about average.


Board Age and Tenure

6.1yrs

Average Tenure

58yo

Average Age

The tenure for the National Grid board of directors is about average.


Insider Trading

National Grid individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£280,29315 Jul 19
Alison Kay
EntityIndividual
Role
Member of the Board of Directors
Group General Counsel
Shares33,285
Max PriceUK£8.42
SellUK£470,27915 Jul 19
Lucy Shaw
EntityIndividual
Role
Member of the Board of Directors
Executive Director of UK & Executive Director
Shares55,846
Max PriceUK£8.42
SellUK£1,101,78715 Jul 19
John Pettigrew
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares130,838
Max PriceUK£8.42
SellUK£114,46715 Jul 19
Andrew Agg
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares13,593
Max PriceUK£8.42
BuyUK£48,43422 May 19
Peter Gershon
EntityIndividual
Role
Chairman of the Board
Chairman
Shares6,000
Max PriceUK£8.07

Ownership Breakdown


Management Team

  • Alison Kay (55yo)

    Group General Counsel

    • Tenure: 6.6yrs
  • Badar Khan

    Group Director of Corporate Development & National Grid Ventures

    • Tenure: 2.3yrs
  • Andy Doyle (52yo)

    Chief Human Resources Officer

    • Tenure: 0.3yrs
  • Nicola Shaw (50yo)

    Executive Director of UK & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£2.20m
  • Dean Seavers (58yo)

    Executive Director of US & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£3.00m
  • Aarti Singhal

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Lisa Lambert

    Senior VP and Chief Technology & Innovation Officer

    • Tenure: 1.6yrs
  • Andi Karaboutis (56yo)

    Group Chief Information & Digital Officer

    • Tenure: 0.0yrs
  • John Pettigrew (50yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£4.56m
  • Andy Agg (49yo)

    CFO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£807.00k

Board Members

  • Alison Kay (55yo)

    Group General Counsel

    • Tenure: 6.6yrs
  • Mark Williamson (61yo)

    Senior Independent Director

    • Tenure: 6.1yrs
    • Compensation: UK£136.00k
  • John Sherlock Dawson (67yo)

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£110.00k
  • Paul Golby (68yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£106.00k
  • Peter Gershon (72yo)

    Chairman

    • Tenure: 7.6yrs
    • Compensation: UK£606.00k
  • Nicola Shaw (50yo)

    Executive Director of UK & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£2.20m
  • Dean Seavers (58yo)

    Executive Director of US & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£3.00m
  • John Pettigrew (50yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£4.56m
  • Andy Agg (49yo)

    CFO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£807.00k
  • David Wright

    Chief Electricity Engineer

    • Tenure: 0.0yrs

Company Information

National Grid plc's company bio, 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£29.688b
  • Shares outstanding: 3.48b
  • Website: https://www.nationalgridet.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NG.LSE (London Stock Exchange)ORD GBP0.12431289GBGBPInvalid date
NGGT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1995
NG.LSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1995
NNGFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1995
NGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1995
NGGNYSE (New York Stock Exchange)SPONSORED ADR NEUSUSDOct 1999
NNGDDB (Deutsche Boerse AG)SPONSORED ADR NEDEEUROct 1999

Biography

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 segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:48
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.