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
- NET SALES(Q) Lowest at GBP 7,065 MM
- EPS(Q) Lowest at GBP 0.12
4
With ROE of 8.04%, it has a fair valuation with a 1.81 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 36.21%, its profits have risen by 24.5% ; the PEG ratio of the company is 0.9
5
Market Beating Performance
- The stock has generated a return of 36.21% in the last 1 year, much higher than market (FTSE 100) returns of 15.58%
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, Medium Return
Absolute
Risk Adjusted
Volatility
National Grid Plc
27.14%
0.75
19.02%
FTSE 100
13.98%
1.15
13.60%
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
22
Industry P/E
Price to Book Value
1.81
EV to EBIT
21.09
EV to EBITDA
14.76
EV to Capital Employed
1.38
EV to Sales
6.24
PEG Ratio
0.92
Dividend Yield
0.93%
ROCE (Latest)
6.54%
ROE (Latest)
8.04%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly 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 Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 11,532 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 130.59%
RAW MATERIAL COST(Y)
Fallen by -2.82% (YoY
PRE-TAX PROFIT(Q)
At GBP 841 MM has Grown at 55.74%
-2What is not working for the Company
NET SALES(Q)
Lowest at GBP 7,065 MM
EPS(Q)
Lowest at GBP 0.12
Here's what is working for National Grid Plc
Operating Cash Flow
Highest at GBP 11,532 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)
Pre-Tax Profit
At GBP 841 MM has Grown at 55.74%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Dividend Payout Ratio
Highest at 130.59%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -2.82% (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
Here's what is not working for National Grid Plc
Net Sales
Lowest at GBP 7,065 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
EPS
Lowest at GBP 0.12
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (GBP)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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