National Grid
Market Cap
UK£32.3b
Last Updated
2019/12/13 20:54 UTC
Data Sources
Company Financials +
Executive Summary
National Grid plc transmits and distributes electricity and natural gas.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and slightly overvalued.
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
Stable Share Price: NG. has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.0%
NG.
1.1%
GB Integrated Utilities
2.3%
GB Market
1 Year Return
10.0%
NG.
10.7%
GB Integrated Utilities
10.7%
GB Market
Return vs Industry: NG. matched the UK Integrated Utilities industry which returned 10.7% over the past year.
Return vs Market: NG. exceeded the UK Market which returned 10.7% over the past year.
Shareholder returns
| NG. | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.0% | 1.1% | 2.3% |
| 30 Day | 4.1% | 2.0% | 2.3% |
| 90 Day | 12.0% | 6.3% | 2.5% |
| 1 Year | 16.5%10.0% | 16.3%10.7% | 16.5%10.7% |
| 3 Year | 16.1%-8.6% | 39.5%17.7% | 21.3%5.9% |
| 5 Year | 30.0%-6.7% | 14.0%-12.3% | 41.1%8.7% |
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
4 days ago | Simply Wall St
Should You Worry About National Grid plc's (LON:NG.) CEO Pay Cheque?2 weeks ago | Simply Wall St
A Look At The Fair Value Of National Grid plc (LON:NG.)3 weeks ago | Simply Wall St
National Grid plc Recorded A 33% Miss On Revenue: Analysts Are Revisiting Their ModelsValuation
Is National Grid undervalued compared to its fair value and its price relative to the market?
10.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NG. (£9.28) is trading below our estimate of fair value (£10.35)
Significantly Below Fair Value: NG. is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NG. is poor value based on its PE Ratio (21.8x) compared to the Integrated Utilities industry average (21.8x).
PE vs Market: NG. is poor value based on its PE Ratio (21.8x) compared to the UK market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: NG. is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: NG. is good value based on its PB Ratio (1.7x) compared to the XE Integrated Utilities industry average (1.9x).
Next Steps
Future Growth
How is National Grid forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
5.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NG.'s forecast earnings growth (5% per year) is above the savings rate (0.5%).
Earnings vs Market: NG.'s earnings (5% per year) are forecast to grow slower than the UK market (12.3% per year).
High Growth Earnings: NG.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: NG.'s revenue (2.6% per year) is forecast to grow slower than the UK market (3.5% per year).
High Growth Revenue: NG.'s revenue (2.6% 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 (10.1%).
Next Steps
Past Performance
How has National Grid performed over the past 5 years?
2.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NG. has a large one-off loss of £526.4M impacting its September 30 2019 financial results.
Growing Profit Margin: NG.'s current net profit margins (9.8%) are lower than last year (22.5%).
Past Earnings Growth Analysis
Earnings Trend: NG.'s earnings have grown by 2.7% per year over the past 5 years.
Accelerating Growth: NG.'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NG. had negative earnings growth (-56.5%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-4%).
Return on Equity
High ROE: NG.'s Return on Equity (7.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is National Grid's financial position?
Financial Position Analysis
Short Term Liabilities: NG.'s short term assets (£6.7B) do not cover its short term liabilities (£9.5B).
Long Term Liabilities: NG.'s short term assets (£6.7B) do not cover its long term liabilities (£37.7B).
Debt to Equity History and Analysis
Debt Level: NG.'s debt to equity ratio (171%) is considered high.
Reducing Debt: NG.'s debt to equity ratio has reduced from 221.2% to 171% over the past 5 years.
Debt Coverage: NG.'s debt is not well covered by operating cash flow (13.5%).
Interest Coverage: NG.'s interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Inventory Level: NG. has a high level of physical assets or inventory.
Debt Coverage by Assets: NG.'s debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is National Grid's current dividend yield, its reliability and sustainability?
5.15%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NG.'s dividend (5.15%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).
High Dividend: NG.'s dividend (5.15%) is low compared to the top 25% of dividend payers in the UK market (5.09%).
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 (112.1%), 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 (84.1% payout ratio).
Next Steps
Management
What is the CEO of National Grid's salary, the management and board of directors tenure and is there insider trading?
2.3yrs
Average management tenure
CEO
John Pettigrew (50yo)
3.7yrs
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
Compensation vs Market: John's total compensation ($USD6.08M) is about average for companies of similar size in the UK market ($USD4.88M).
Compensation vs Earnings: 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
2.3yrs
Average Tenure
52yo
Average Age
Experienced Management: NG.'s management team is considered experienced (2.3 years average tenure).
Board Age and Tenure
6.4yrs
Average Tenure
58yo
Average Age
Experienced Board: NG.'s board of directors are considered experienced (6.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director of UK & Executive Director |
| Shares | 55,846 |
| Max Price | UK£8.42 |
| Entity | Individual |
| Role | Member of the Board of Directors Group General Counsel |
| Shares | 33,285 |
| Max Price | UK£8.42 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 13,593 |
| Max Price | UK£8.42 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 130,838 |
| Max Price | UK£8.42 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 6,000 |
| Max Price | UK£8.07 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Alison Kay (55yo)
Group General Counsel
- Tenure: 6.9yrs
Badar Khan
Interim President of US and Group Director of Corporate Development & National Grid Ventures
- Tenure: 2.7yrs
Andy Doyle (52yo)
Chief Human Resources Officer
- Tenure: 0.7yrs
Nicola Shaw (50yo)
Executive Director of UK & Executive Director
- Tenure: 3.4yrs
- Compensation: UK£2.20m
Dean Seavers (58yo)
Executive Officer
- Tenure: 0.08yrs
- Compensation: UK£3.00m
Aarti Singhal
Director of Investor Relations
- Tenure: 0yrs
Lisa Lambert
Senior VP and Chief Technology & Innovation Officer
- Tenure: 1.9yrs
Andi Karaboutis (56yo)
Group Chief Information & Digital Officer
- Tenure: 0yrs
John Pettigrew (50yo)
CEO & Executive Director
- Tenure: 3.7yrs
- Compensation: UK£4.56m
Andy Agg (49yo)
CFO & Executive Director
- Tenure: 0.9yrs
- Compensation: UK£807.00k
Board Members
Alison Kay (55yo)
Group General Counsel
- Tenure: 6.9yrs
Mark Williamson (61yo)
Senior Independent Director
- Tenure: 6.4yrs
- Compensation: UK£136.00k
John Sherlock Dawson (67yo)
Independent Non-Executive Director
- Tenure: 6.8yrs
- Compensation: UK£110.00k
Paul Golby (68yo)
Independent Non-Executive Director
- Tenure: 7.8yrs
- Compensation: UK£106.00k
Peter Gershon (72yo)
Chairman
- Tenure: 7.9yrs
- Compensation: UK£606.00k
Thérèse Esperdy (58yo)
Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: UK£153.00k
Nicola Shaw (50yo)
Executive Director of UK & Executive Director
- Tenure: 3.4yrs
- Compensation: UK£2.20m
John Pettigrew (50yo)
CEO & Executive Director
- Tenure: 3.7yrs
- Compensation: UK£4.56m
Andy Agg (49yo)
CFO & Executive Director
- Tenure: 0.9yrs
- Compensation: UK£807.00k
David Wright
Chief Electricity Engineer
- Tenure: 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£32.305b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NG. | LSE (London Stock Exchange) | ORD GBP0.12431289 | GB | GBP | No data | |
| NGGT.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 1995 |
| NG. | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Nov 1995 |
| NNGF | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 1995 |
| NGL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Nov 1995 |
| NGG | NYSE (New York Stock Exchange) | SPON ADR EACH REP 5 ORD SHS(POST SPLT) | US | USD | Oct 1999 | |
| NNGD | DB (Deutsche Boerse AG) | SPON ADR EACH REP 5 ORD SHS(POST SPLT) | DE | EUR | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/13 20:54 |
| End of Day Share Price | 2019/12/13 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.