Is National Grid Stock a Good Investment?
National Grid Investment Advice | NGG |
- Examine National Grid's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research National Grid's leadership team and their track record. Good management can help National Grid navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Multi-Utilities space and any emerging trends that could impact National Grid's business and its evolving consumer preferences.
- Compare National Grid's performance and market position to its competitors. Analyze how National Grid is positioned in terms of product offerings, innovation, and market share.
- Check if National Grid pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about National Grid's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in National Grid PLC stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if National Grid PLC is a good investment.
Sell | Buy |
Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine National Grid Stock
Researching National Grid's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has price-to-book ratio of 1.37. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. National Grid PLC has Price/Earnings To Growth (PEG) ratio of 1.96. The entity last dividend was issued on the 22nd of November 2024. The firm had 916:1000 split on the 22nd of May 2017.
To determine if National Grid is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding National Grid's research are outlined below:
| National Grid PLC generated a negative expected return over the last 90 days | |
| National Grid PLC has 47.07 B in debt with debt to equity (D/E) ratio of 1.95, which is OK given its current industry classification. National Grid PLC has a current ratio of 0.72, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for National to invest in growth at high rates of return. | |
| Latest headline from simplywall.st: These 4 Measures Indicate That National Grid Is Using Debt Extensively |
National Grid uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in National Grid PLC. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to National Grid's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of May 2023 Upcoming Quarterly Report | View | |
| 31st of March 2023 Next Fiscal Quarter End | View | |
| 18th of May 2023 Next Fiscal Year End | View | |
| 31st of December 2022 Last Quarter Report | View | |
| 31st of March 2022 Last Financial Announcement | View |
Know National Grid's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as National Grid is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading National Grid PLC backward and forwards among themselves. National Grid's institutional investor refers to the entity that pools money to purchase National Grid's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Envestnet Asset Management Inc | 2024-09-30 | 1.2 M | Raymond James & Associates | 2024-09-30 | 1.2 M | Merewether Investment Management, Lp | 2024-09-30 | 955 K | Ausbil Investment Management Limited | 2024-09-30 | 896 K | Lpl Financial Corp | 2024-09-30 | 756.5 K | Clark Capital Management Group Inc | 2024-09-30 | 745.1 K | Nuveen Asset Management, Llc | 2024-06-30 | 734.4 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 694.1 K | Hsbc Holdings Plc | 2024-06-30 | 650.1 K | Fmr Inc | 2024-09-30 | 4 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 3.6 M |
National Grid's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 62.23 B.Market Cap |
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National Grid's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.03 | |
| Return On Capital Employed | 0.05 | 0.05 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.08 | 0.07 |
Determining National Grid's profitability involves analyzing its financial statements and using various financial metrics to determine if National Grid is a good buy. For example, gross profit margin measures National Grid's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of National Grid's profitability and make more informed investment decisions.
Evaluate National Grid's management efficiency
National Grid PLC has Return on Asset of 0.0316 % which means that on every $100 spent on assets, it made $0.0316 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0528 %, implying that it generated $0.0528 on every 100 dollars invested. National Grid's management efficiency ratios could be used to measure how well National Grid manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to 0.03. The current Return On Capital Employed is estimated to decrease to 0.05. At this time, National Grid's Non Currrent Assets Other are most likely to decrease significantly in the upcoming years. The National Grid's current Other Current Assets is estimated to increase to about 3.5 B, while Intangible Assets are projected to decrease to roughly 2.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 7.79 | 8.18 | |
| Tangible Book Value Per Share | 4.36 | 4.58 | |
| Enterprise Value Over EBITDA | 12.35 | 9.36 | |
| Price Book Value Ratio | 1.27 | 1.20 | |
| Enterprise Value Multiple | 12.35 | 9.36 | |
| Price Fair Value | 1.27 | 1.20 | |
| Enterprise Value | 75.9 B | 79.7 B |
At National Grid PLC, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Dividend Yield 0.0552 | Forward Dividend Yield 0.0552 | Forward Dividend Rate 3.51 | Beta 0.268 |
Basic technical analysis of National Stock
As of the 30th of November, National Grid secures the Mean Deviation of 0.8426, standard deviation of 1.05, and Risk Adjusted Performance of (0.03). In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of National Grid PLC, as well as the relationship between them. Please verify National Grid PLC standard deviation, as well as the relationship between the maximum drawdown and kurtosis to decide if National Grid PLC is priced some-what accurately, providing market reflects its recent price of 63.68 per share. Given that National Grid PLC has information ratio of (0.18), we recommend you to check National Grid's last-minute market performance to make sure the company can sustain itself at a future point.National Grid's Outstanding Corporate Bonds
National Grid issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. National Grid PLC uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most National bonds can be classified according to their maturity, which is the date when National Grid PLC has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand National Grid's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing National Grid's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 0.8426 | |||
| Coefficient Of Variation | (2,238) | |||
| Standard Deviation | 1.05 | |||
| Variance | 1.1 | |||
| Information Ratio | (0.18) | |||
| Jensen Alpha | (0.08) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.36) | |||
| Maximum Drawdown | 4.41 | |||
| Value At Risk | (1.93) | |||
| Potential Upside | 1.58 | |||
| Skewness | (0.44) | |||
| Kurtosis | (0.38) |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 0.8426 | |||
| Coefficient Of Variation | (2,238) | |||
| Standard Deviation | 1.05 | |||
| Variance | 1.1 | |||
| Information Ratio | (0.18) | |||
| Jensen Alpha | (0.08) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.36) | |||
| Maximum Drawdown | 4.41 | |||
| Value At Risk | (1.93) | |||
| Potential Upside | 1.58 | |||
| Skewness | (0.44) | |||
| Kurtosis | (0.38) |
Consider National Grid's intraday indicators
National Grid intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of National Grid stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
National Grid Corporate Filings
6K | 29th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 28th of August 2024 Other Reports | ViewVerify | |
| 26th of June 2024 Other Reports | ViewVerify | |
| 25th of June 2024 Other Reports | ViewVerify |
National Stock media impact
Far too much social signal, news, headlines, and media speculation about National Grid that are available to investors today. That information is available publicly through National media outlets and privately through word of mouth or via National internal channels. However, regardless of the origin, that massive amount of National data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of National Grid news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of National Grid relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to National Grid's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive National Grid alpha.
National Grid Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards National Grid can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
National Grid Corporate Directors
| Jonathan Silver | Non-Executive Independent Director | Profile | |
| Andy Agg | Chief Financial Officer, Executive Director | Profile | |
| Earl Shipp | Non-Executive Independent Director | Profile | |
| John Pettigrew | Executive Director of UK and Executive Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in National Grid PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Multi-Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of National Grid. If investors know National will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about National Grid listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.82) | Dividend Share 0.55 | Earnings Share 2.59 | Revenue Per Share 3.9126 | Quarterly Revenue Growth (0.06) |
The market value of National Grid PLC is measured differently than its book value, which is the value of National that is recorded on the company's balance sheet. Investors also form their own opinion of National Grid's value that differs from its market value or its book value, called intrinsic value, which is National Grid's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because National Grid's market value can be influenced by many factors that don't directly affect National Grid's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between National Grid's value and its price, as these two are different measures arrived at by various means. Investors typically determine if National Grid is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, National Grid's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.