ScoreWhy is National Grid Plc ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 12.10% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Capital Employed (avg) of 5.98% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Operating profit has grown by an annual rate 12.10% of over the last 5 years
- OPERATING CASH FLOW(Y) Highest at GBP 11,579 MM
- ROCE(HY) Highest at 8.41%
- INTEREST COVERAGE RATIO(Q) Highest at 960.92
3
With ROE of 8.37%, it has a expensive valuation with a 1.53 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 15.87%, its profits have risen by 16% ; the PEG ratio of the company is 1.3
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to National Grid Plc should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is National Grid Plc for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
National Grid Plc
15.87%
0.22
21.65%
FTSE 100
17.87%
1.52
11.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.66%
EBIT Growth (5y)
12.10%
EBIT to Interest (avg)
3.33
Debt to EBITDA (avg)
6.57
Net Debt to Equity (avg)
1.06
Sales to Capital Employed (avg)
0.25
Tax Ratio
22.95%
Dividend Payout Ratio
74.00%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
5.98%
ROE (avg)
8.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.53
EV to EBIT
20.52
EV to EBITDA
14.19
EV to Capital Employed
1.25
EV to Sales
5.85
PEG Ratio
1.30
Dividend Yield
3.01%
ROCE (Latest)
6.12%
ROE (Latest)
8.37%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 11,579 MM
ROCE(HY)
Highest at 8.41%
INTEREST COVERAGE RATIO(Q)
Highest at 960.92
RAW MATERIAL COST(Y)
Fallen by -18.29% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 21.78 times
PRE-TAX PROFIT(Q)
Highest at GBP 3,325 MM
NET PROFIT(Q)
Highest at GBP 2,628.68 MM
EPS(Q)
Highest at GBP 0.53
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.84 times
Here's what is working for National Grid Plc
Operating Cash Flow
Highest at GBP 11,579 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Interest Coverage Ratio
Highest at 960.92
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
Highest at GBP 3,325 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 2,628.68 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.53
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Inventory Turnover Ratio
Highest at 21.78 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -18.29% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at GBP 1,145 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for National Grid Plc
Debtors Turnover Ratio
Lowest at 4.84 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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