National Grid plc (NG) is a leading utilities-diversified business based in the UK. National Grid is listed on the London Stock Exchange (LSE) and employs 23,069 staff. All prices are listed in pence sterling.
|52-week range||749.3602p - 1019.6885p|
|50-day moving average||871.5529p|
|200-day moving average||890.9507p|
|Wall St. target price||912.93p|
|Dividend yield||0.49p (5.59%)|
|Earnings per share (TTM)||41.8p|
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing National Grid stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of National Grid's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
National Grid's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, National Grid shares trade at around 21x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, National Grid's P/E ratio is best considered in relation to those of others within the utilities-diversified industry or those of similar companies.
National Grid's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.7811. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into National Grid's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider National Grid's PEG ratio in relation to those of similar companies.
National Grid's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £4.7 billion.
The EBITDA is a measure of a National Grid's overall financial performance and is widely used to measure a its profitability.
To put National Grid's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£14.8 billion|
|Operating margin TTM||22.34%|
|Gross profit TTM||£14.5 billion|
|Return on assets TTM||3.13%|
|Return on equity TTM||7.97%|
|Market capitalisation||£31.1 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like National Grid.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 25.67
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and National Grid's overall score of 25.67 (as at 01/01/2019) is pretty good – landing it in it in the 37th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like National Grid is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare National Grid's total ESG risk score against those of similar companies.
Environmental score: 8.47/100
National Grid's environmental score of 8.47 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that National Grid is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 15.25/100
National Grid's social score of 15.25 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that National Grid is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 8.95/100
National Grid's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that National Grid is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, National Grid scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that National Grid has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||25.67|
|Total ESG percentile||36.82|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||2|
Dividend payout ratio: 11666.67% of net profits
Recently National Grid has paid out, on average, around 11666.67% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.59% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), National Grid shareholders could enjoy a 5.59% return on their shares, in the form of dividend payments. In National Grid's case, that would currently equate to about 0.49p per share.
National Grid's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 26 November 2020 (the "ex-dividend date").
National Grid's dividend payout ratio is perhaps best considered in relation to those of similar companies.
National Grid's shares were split on a 11:12 basis on 22 May 2017. So if you had owned 12 shares the day before before the split, the next day you'd have owned 11 shares. This wouldn't directly have changed the overall worth of your National Grid shares – just the quantity. However, indirectly, the new 9.1% higher share price could have impacted the market appetite for National Grid shares which in turn could have impacted National Grid's share price.
Over the last 12 months, National Grid's shares have ranged in value from as little as 749.3602p up to 1019.6885p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while National Grid's is -0.0133. This would suggest that National Grid's shares have been inversely-correlated to the average (for this exchange) – so when the broader market trended up or down, National Grid has bucked the trend.
To put National Grid's beta into context you can compare it against those of similar companies.
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 kilometers of overhead lines; 2,239 kilometers 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 7,630 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 14,659 kilometres of overhead lines, 169 kilometres of underground cables, and 396 transmission substations; an electricity distribution network of approximately 117,488 circuit kilometres and 730 distribution substations; a network of approximately 57,425 kilometres of gas pipeline; and approximately 801 kilometres of gas transmission pipes. The NGV and Other segment engages in the energy metering business; transporting 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.
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