ScoreWhy is National Grid Plc ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 8.47% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- 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 8.47% of over the last 5 years
3
The company declared negative results in Sep'24 after positive results in Mar'24
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.4%
4
With ROE of 7.50%, it has a very expensive valuation with a 1.39 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 15.40%, its profits have fallen by -1.7%
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
15.4%
-0.06
18.98%
FTSE 100
15.94%
1.23
12.99%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.41%
EBIT Growth (5y)
8.47%
EBIT to Interest (avg)
3.33
Debt to EBITDA (avg)
6.57
Net Debt to Equity (avg)
1.06
Sales to Capital Employed (avg)
0.26
Tax Ratio
22.95%
Dividend Payout Ratio
75.78%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
5.98%
ROE (avg)
8.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.39
EV to EBIT
19.41
EV to EBITDA
13.33
EV to Capital Employed
1.19
EV to Sales
5.03
PEG Ratio
NA
Dividend Yield
1.14%
ROCE (Latest)
6.13%
ROE (Latest)
7.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 837.28
RAW MATERIAL COST(Y)
Fallen by -225.12% (YoY
OPERATING PROFIT(Q)
Highest at GBP 4,672 MM
OPERATING PROFIT MARGIN(Q)
Highest at 44.85 %
PRE-TAX PROFIT(Q)
Highest at GBP 3,051 MM
NET PROFIT(Q)
Highest at GBP 2,331.73 MM
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.4%
Here's what is working for National Grid Plc
Interest Coverage Ratio
Highest at 837.28
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at GBP 4,672 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Operating Profit Margin
Highest at 44.85 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at GBP 3,051 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 2,331.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
Raw Material Cost
Fallen by -225.12% (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 1,117 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 5.4%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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