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National Grid

LSE:NG.
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NG.
LSE
£28B
Market Cap
  1. Home
  2. GB
  3. Utilities
Company description

National Grid plc transmits and distributes electricity and natural gas. The last earnings update was 13 days ago. More info.


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NG. Share Price and Events
7 Day Returns
1.5%
LSE:NG.
-0.5%
Europe Integrated Utilities
0.4%
GB Market
1 Year Returns
0.2%
LSE:NG.
2%
Europe Integrated Utilities
-3.7%
GB Market
NG. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
National Grid (NG.) 1.5% 1.4% -6.2% 0.2% -22.1% -10%
Europe Integrated Utilities -0.5% 0.8% -1.3% 2% -1.5% -22.1%
GB Market 0.4% 0.3% 0.8% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • NG. underperformed the Integrated Utilities industry which returned 2% over the past year.
  • NG. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
NG.
Industry
5yr Volatility vs Market

NG. Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for National Grid. This is due to cash flow or dividend data being unavailable. The share price is £8.292.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for National Grid's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are National Grid's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:NG. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.44
LSE:NG. Share Price ** LSE (2019-06-17) in GBP £8.29
Europe Integrated Utilities Industry PE Ratio Median Figure of 16 Publicly-Listed Integrated Utilities Companies 20.76x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of National Grid.

LSE:NG. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:NG. Share Price ÷ EPS (both in GBP)

= 8.29 ÷ 0.44

18.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does National Grid's expected growth come at a high price?
Raw Data
LSE:NG. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
5.6%per year
Europe Integrated Utilities Industry PEG Ratio Median Figure of 11 Publicly-Listed Integrated Utilities Companies 2.62x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:NG. PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.73x ÷ 5.6%

3.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Grid is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on National Grid's assets?
Raw Data
LSE:NG. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £5.67
LSE:NG. Share Price * LSE (2019-06-17) in GBP £8.29
Europe Integrated Utilities Industry PB Ratio Median Figure of 21 Publicly-Listed Integrated Utilities Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:NG. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:NG. Share Price ÷ Book Value per Share (both in GBP)

= 8.29 ÷ 5.67

1.46x

* Primary Listing of National Grid.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Grid is good value based on assets compared to the Europe Integrated Utilities industry average.
X
Value checks
We assess National Grid's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Integrated Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Integrated Utilities industry average (and greater than 0)? (1 check)
  5. National Grid has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NG. Future Performance

 How is National Grid expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is National Grid expected to grow at an attractive rate?
  • National Grid's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • National Grid's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • National Grid's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:NG. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:NG. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 5.6%
LSE:NG. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3.5%
Europe Integrated Utilities Industry Earnings Growth Rate Market Cap Weighted Average 14.1%
Europe Integrated Utilities Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:NG. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:NG. Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 18,064 5,422 2,245 4
2023-03-31 17,381 5,151 2,123 4
2022-03-31 16,218 4,733 2,081 10
2021-03-31 16,103 4,646 2,111 15
2020-03-31 15,471 4,284 1,969 11
LSE:NG. Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 14,933 4,318 1,499
2018-12-31 14,923 4,384 2,425
2018-09-30 14,913 4,449 3,393
2018-06-30 15,082 4,476 3,492
2018-03-31 15,250 4,503 3,548
2017-12-31 15,345 4,793 2,577
2017-09-30 15,439 5,083 1,606
2017-06-30 15,237 5,156 1,709
2017-03-31 15,035 5,229 1,811
2016-09-30 12,638 4,933 1,685
2016-06-30 12,925 5,151 1,793

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • National Grid's earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
  • National Grid's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:NG. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from National Grid Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:NG. Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 0.60 0.63 0.57 2.00
2023-03-31 0.57 0.58 0.56 2.00
2022-03-31 0.58 0.61 0.55 7.00
2021-03-31 0.61 0.63 0.58 11.00
2020-03-31 0.58 0.59 0.56 10.00
LSE:NG. Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.44
2018-12-31 0.72
2018-09-30 1.01
2018-06-30 1.02
2018-03-31 1.03
2017-12-31 0.74
2017-09-30 0.46
2017-06-30 0.49
2017-03-31 0.53
2016-09-30 0.49
2016-06-30 0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • National Grid is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess National Grid's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
National Grid has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NG. Past Performance

  How has National Grid performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare National Grid's growth in the last year to its industry (Integrated Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
National Grid's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from National Grid Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:NG. Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 14,933.00 1,499.00 1,674.00
2018-12-31 14,923.00 2,424.50 1,677.00
2018-09-30 14,913.00 3,393.00 1,680.00
2018-06-30 15,081.50 3,492.00 1,691.00
2018-03-31 15,250.00 3,548.00 1,702.00
2017-12-31 15,344.50 2,577.00 1,679.50
2017-09-30 15,439.00 1,606.00 1,657.00
2017-06-30 15,237.00 1,708.50 1,665.00
2017-03-31 15,035.00 1,811.00 1,673.00
2016-09-30 12,638.00 1,685.00 1,429.00
2016-06-30 12,925.00 1,793.00 1,431.50
2016-03-31 13,212.00 1,899.00 1,434.00
2015-12-31 15,403.00 2,374.50 1,587.50
2015-09-30 15,691.00 2,158.00 1,561.00
2015-06-30 15,446.00 2,088.50 1,558.50
2015-03-31 13,357.00 1,503.00 1,365.00
2014-12-31 14,826.50 2,080.50 1,369.50
2014-09-30 14,452.00 2,142.00 1,453.00
2014-06-30 14,630.50 2,309.00 1,464.50
2014-03-31 14,809.00 2,476.00 1,341.00
2013-12-31 14,905.00 2,446.00 1,523.00
2013-09-30 15,001.00 2,416.00 1,570.00
2013-06-30 14,680.00 2,284.50 1,567.00
2013-03-31 14,359.00 2,153.00 1,564.00
2012-12-31 13,982.00 2,067.50 1,655.00
2012-09-30 13,605.00 2,220.00 1,416.00
2012-06-30 13,718.50 2,128.00 1,365.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • National Grid has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • National Grid used its assets more efficiently than the Europe Integrated Utilities industry average last year based on Return on Assets.
  • National Grid has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess National Grid's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Integrated Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
National Grid has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NG. Health

 How is National Grid's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up National Grid's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of National Grid's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from National Grid Company Filings, last reported 2 months ago.

LSE:NG. Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 19,369.00 29,814.00 2,233.00
2018-12-31 19,369.00 29,814.00 2,233.00
2018-09-30 19,335.00 28,666.00 1,788.00
2018-06-30 19,335.00 28,666.00 1,788.00
2018-03-31 18,848.00 27,570.00 3,023.00
2017-12-31 18,848.00 27,570.00 3,023.00
2017-09-30 16,872.00 27,538.00 2,612.00
2017-06-30 16,872.00 27,538.00 2,612.00
2017-03-31 20,384.00 30,861.00 9,880.00
2016-09-30 12,570.00 34,741.00 3,417.00
2016-06-30 12,570.00 34,741.00 3,417.00
2016-03-31 13,565.00 30,413.00 3,125.00
2015-12-31 13,565.00 30,413.00 3,125.00
2015-09-30 12,309.00 28,613.00 2,489.00
2015-06-30 12,309.00 28,613.00 2,489.00
2015-03-31 11,974.00 28,309.00 2,678.00
2014-12-31 11,974.00 28,309.00 2,678.00
2014-09-30 12,121.00 26,968.00 3,636.00
2014-06-30 12,121.00 26,968.00 3,636.00
2014-03-31 11,919.00 27,113.00 3,953.00
2013-12-31 11,919.00 27,113.00 3,953.00
2013-09-30 11,224.00 27,735.00 4,356.00
2013-06-30 11,224.00 27,735.00 4,356.00
2013-03-31 10,234.00 29,776.00 6,102.00
2012-12-31 10,234.00 29,776.00 6,102.00
2012-09-30 9,121.00 25,858.00 3,179.00
2012-06-30 9,121.00 25,858.00 3,179.00
  • National Grid's level of debt (153.9%) 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 (227.4% vs 153.9% today).
  • Debt is not well covered by operating cash flow (14.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
X
Financial health checks
We assess National Grid's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. National Grid has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NG. Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.71%
Current annual income from National Grid dividends. Estimated to be 6.02% next year.
If you bought £2,000 of National Grid shares you are expected to receive £114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • National Grid's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • National Grid's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:NG. Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Integrated Utilities Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 5.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:NG. Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 0.53 4.00
2023-03-31 0.50 5.00
2022-03-31 0.50 12.00
2021-03-31 0.50 17.00
2020-03-31 0.49 16.00
LSE:NG. Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-04 0.473 5.804
2019-05-16 0.473 5.875
2018-05-17 0.459 5.554
2017-11-24 0.446 5.478
2017-06-06 0.483 5.105
2017-05-18 0.483 4.484
2016-06-07 0.473 4.307
2016-05-19 0.473 4.386
2015-06-05 0.468 4.688
2015-05-21 0.468 4.707
2014-05-19 0.459 4.730
2013-11-21 0.446 5.070
2013-05-16 0.446 5.369
2012-12-05 0.435 5.417
2012-06-12 0.429 5.722
2012-05-17 0.429 5.912
2011-06-13 0.397 5.817
2011-05-19 0.397 5.992
2010-05-25 0.420 6.965
2010-05-20 0.420 6.812
2009-11-19 0.400 5.683

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of National Grid's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess National Grid's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can National Grid afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. National Grid has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NG. Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Pettigrew
COMPENSATION £4,562,000
AGE 49
TENURE AS CEO 3.2 years
CEO Bio

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 its Executive Director since April 1, 2014. Mr. Pettigrew is responsible for the UK’s Electricity Transmission, Gas Transmission and Gas Distribution businesses. He has over 25 years of experience at National Grid in a variety of senior management roles. He serves as Senior Independent Director at Rentokil Initial plc since May 08, 2019. He had been Non-Executive Director of Rentokil Initial plc since January 1, 2018 until May 08, 2019. He served as an Executive Director of U.K at National Grid plc since October 1, 2014 to March 31, 2016. He served as Chief Operating Officer of Gas Distribution at National Grid Gas plc from 2010 to 2012. He served as the U.K. Chief Operating Officer at National Grid plc from July 2012 to 2014. He has experience in Government/regulatory, Partnering/JV/contract management, Utilities – energy and US. He joined The National Grid Company plc in 1991 and served in various senior management roles including Director of Engineering since 2003, Chief Operating Officer and Executive Vice President for the US Electricity Distribution & Generation business from 2007 to 2010; Chief Operating Officer for UK Gas Distribution from 2010 to 2012; and UK Chief Operating Officer from 2012 to 2014. He served as a Non-Independent Chairman at National Grid Electricity Transmission plc since July 2015 until February 11, 2016 and served as its Director since September 17, 2012 until February 11, 2016. Mr. Pettigrew has been an Executive Director of National Grid Gas Holdings Limited since April 1, 2014. He has been an Executive Director of National Grid USA Service Company, Inc. since April 1, 2014. He served as an Executive Director of UK at National Grid plc since October 2014 until March 31, 2016. He served as Executive Director of National Grid Gas plc since April 1, 2011 until February 2016. Mr. Pettigrew is a Fellow of the Energy Institute and of the Institution of Energy and Technology. He holds a BSC in Economics and an MSc in International Economics and Banking. He also completed the Advanced Management Program at Harvard Business School in 2010.

CEO Compensation
  • John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the National Grid management team in years:

2.5
Average Tenure
51
Average Age
  • The tenure for the National Grid management team is about average.
Management Team

John Pettigrew

TITLE
CEO & Executive Director
COMPENSATION
£5M
AGE
49
TENURE
3.2 yrs

Andy Agg

TITLE
CFO & Executive Director
COMPENSATION
£807K
AGE
48
TENURE
0.9 yrs

Dean Seavers

TITLE
Executive Director of US & Executive Director
COMPENSATION
£3M
AGE
57
TENURE
4.2 yrs

Nicola Shaw

TITLE
Executive Director of UK & Executive Director
COMPENSATION
£2M
AGE
49
TENURE
2.9 yrs

Lisa Lambert

TITLE
Senior VP and Chief Technology & Innovation Officer
TENURE
1.4 yrs

Andi Karaboutis

TITLE
Group Chief Information & Digital Officer
AGE
55

Aarti Singhal

TITLE
Director of Investor Relations

Alison Kay

TITLE
Group General Counsel
AGE
54
TENURE
6.4 yrs

Badar Khan

TITLE
Group Director of Corporate Development & National Grid Ventures
TENURE
2.2 yrs

Andy Doyle

TITLE
Chief Human Resources Officer
AGE
51
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the National Grid board of directors in years:

5.9
Average Tenure
57
Average Age
  • The tenure for the National Grid board of directors is about average.
Board of Directors

Peter Gershon

TITLE
Chairman
COMPENSATION
£606K
AGE
71
TENURE
7.4 yrs

John Pettigrew

TITLE
CEO & Executive Director
COMPENSATION
£5M
AGE
49
TENURE
5.2 yrs

Andy Agg

TITLE
CFO & Executive Director
COMPENSATION
£807K
AGE
48
TENURE
0.4 yrs

Dean Seavers

TITLE
Executive Director of US & Executive Director
COMPENSATION
£3M
AGE
57
TENURE
4.2 yrs

Nicola Shaw

TITLE
Executive Director of UK & Executive Director
COMPENSATION
£2M
AGE
49
TENURE
2.9 yrs

Alison Kay

TITLE
Group General Counsel
AGE
54
TENURE
6.4 yrs

David Wright

TITLE
Chief Electricity Engineer

Paul Golby

TITLE
Independent Non-Executive Director
COMPENSATION
£106K
AGE
67
TENURE
7.3 yrs

Mark Williamson

TITLE
Senior Independent Director
COMPENSATION
£136K
AGE
60
TENURE
5.9 yrs

John Sherlock Dawson

TITLE
Independent Non-Executive Director
COMPENSATION
£110K
AGE
66
TENURE
6.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by National Grid insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
22. May 19 Buy Peter Gershon Individual 22. May 19 22. May 19 6,000 £8.07 £48,434
X
Management checks
We assess National Grid's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. National Grid has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NG. News

Simply Wall St News

Is National Grid plc (LON:NG.) An Attractive Dividend Stock?

Cash is slightly more important than profit from a dividend perspective, but given National Grid's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. … As National Grid's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. … Conclusion To summarise, shareholders should always check that National Grid's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Do You Know About National Grid plc’s (LON:NG.) ROCE?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for National Grid: 0.066 = UK£3.6b ÷ (UK£63b - UK£9.1b) (Based on the trailing twelve months to March 2019.) So, National Grid has an ROCE of 6.6%. … How National Grid's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should You Worry About National Grid plc's (LON:NG.) CEO Pay?

According to our data, National Grid plc has a market capitalization of UK£29b, and pays its CEO total annual compensation worth UK£3.5m. … The graphic below shows how CEO compensation at National Grid has changed from year to year. … If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at National Grid.

Simply Wall St -

These Factors Make National Grid plc (LON:NG.) An Interesting Investment

Help shape the future of investing tools and you could win a $250 gift card! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on National Grid plc (LON:NG.) due to its excellent fundamentals in more than one area.

Simply Wall St -

If You Like EPS Growth Then Check Out National Grid (LON:NG.) Before It's Too Late

So if you're like me, you might be more interested in profitable, growing companies, like National Grid (LON:NG.). … National Grid's Earnings Per Share Are Growing. … If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow.

Simply Wall St -

Is National Grid plc's (LON:NG.) P/E Ratio Really That Good?

We'll look at National Grid plc's (LON:NG.) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, National Grid's P/E ratio is 8.28. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is National Grid plc (LON:NG.) A High Quality Stock To Own?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows National Grid has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Investors Who Bought National Grid (LON:NG.) Shares Three Years Ago Are Now Down 18%

We regret to report that long term National Grid plc (LON:NG.) shareholders have had that experience, with the share price dropping 18% in three years, versus a market return of about 29%. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Although the share price is down over three years, National Grid actually managed to grow EPS by 17% per year in that time.

Simply Wall St -

Is National Grid plc's (LON:NG.) Balance Sheet A Threat To Its Future?

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as National Grid plc (LON:NG.) a safer option. … Today we will look at National Grid’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … See our latest analysis for National Grid

Simply Wall St -

Does National Grid plc (LON:NG.) Create Value For Shareholders?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

NG. Company Info

Description

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 7,212 kilometres of overhead lines; 2,280 kilometres of underground cables; and 347 substations in England and Wales, as well as Scottish electricity transmission systems. The UK Gas Transmission segment owns and operates gas transmission systems that include approximately 7,660 kilometres of high-pressure pipes; and 24 compressor stations connecting to 8 distribution networks in Great Britain, as well as third-party independent systems and liquefied natural gas (LNG) storage facilities. The US Regulated segments owns and operates transmission facilities across upstate New York, Massachusetts, New Hampshire, Rhode Island, and Vermont; and electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. Its assets comprise 14,293 kilometres of overhead lines, 169 kilometres of underground cables, and 377 transmission substations; an electricity distribution network of approximately 117,230 circuit kilometres and 763 distribution substations; a network of approximately 57,228 kilometres of gas pipeline serving an area of approximately 25,659 square kilometres; and approximately 787 kilometres of gas transmission pipes. The NGV and Other segment engages in the energy metering business; transporting primarily renewable energy long distances through its electricity interconnectors; and storing LNG, as well as property development and insurance activities in the United Kingdom and United States. The company was founded in 1990 and is headquartered in London, the United Kingdom.

Details
Name: National Grid plc
NG.
Exchange: LSE
Founded: 1990
£28,291,351,489
3,411,885,129
Website: http://www.nationalgrid.com
Address: National Grid plc
1-3 Strand,
London,
Greater London, WC2N 5EH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE NG. Ordinary Shares London Stock Exchange GB GBP 22. Nov 1995
OTCPK NGGT.F Ordinary Shares Pink Sheets LLC US USD 22. Nov 1995
DB NNGF Ordinary Shares Deutsche Boerse AG DE EUR 22. Nov 1995
BATS-CHIXE NGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 22. Nov 1995
NYSE NGG SPON ADR EACH REP 5 ORD SHS(POST SPLT) New York Stock Exchange US USD 07. Oct 1999
LSE NG. ORD GBP0.12431289 London Stock Exchange GB GBP 17. Jun 2019
DB NNGD SPON ADR EACH REP 5 ORD SHS(POST SPLT) Deutsche Boerse AG DE EUR 07. Oct 1999
Number of employees
Current staff
Staff numbers
22,576
National Grid employees.
Industry
Multi-Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 20:50
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/06/04
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.