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
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
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
is considered below, and whether this is a fair price.
Price based on past earnings
National Grid's earnings available for a low price, and how does
this compare to other companies in the same industry?
National Grid's earnings are expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
National Grid's revenue is expected to grow by 2.9% 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.
National Grid's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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.
TENURE AS CEO
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 has been Non-Executive Director of Rentokil Initial plc since January 1, 2018. 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.
John's compensation has been consistent with company performance over the past year.
John's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the National Grid management team is about average.
CEO & Executive Director
Executive Director of US & Executive Director
Executive Director of UK & Executive Director
CFO & Executive Director
Senior VP and Chief Technology & Innovation Officer
Group Chief Information & Digital Officer
Director of Investor Relations
Group General Counsel & Company Secretary
Group Director of Corporate Development & National Grid Ventures
Chief Human Resources Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the National Grid board of directors is about average.
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 and Other Activities segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,200 kilometers of overhead lines; 1,560 kilometers of underground cables; and 346 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 kilometers of high-pressure pipes and 24 compressor stations connecting 8 distribution networks in Great Britain, as well as other 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. This segment’s assets comprise 14,293 kilometers of overhead lines; 168 kilometers of underground cables; 387 transmission substations; and 740 distribution substations. It also engages in owning and operating gas distribution networks in upstate New York, New York City, Long Island, Massachusetts, and Rhode Island. The National Grid Ventures and Other Activities segment engages in the commercial operations in metering, LNG importation terminal, and electricity interconnectors businesses, 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.
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