National Grid plc Fundamental Analysis (XETRA: NNGF.DE)
National Grid plc (XETRA: NNGF.DE) shows weak financial fundamentals with a PE ratio of 18.52, profit margin of 18.32%, and ROE of 8.47%. The company generates $17.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NNGF.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakNNGF.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNNGF.DE trades at attractive valuation levels.
Growth Score
ModerateNNGF.DE shows steady but slowing expansion.
Financial Health Score
WeakNNGF.DE carries high financial risk with limited liquidity.
Profitability Score
WeakNNGF.DE struggles to sustain strong margins.
Key Financial Metrics
Is NNGF.DE Expensive or Cheap?
P/E Ratio
NNGF.DE trades at 18.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NNGF.DE's PEG of 1.86 indicates fair valuation.
Price to Book
The market values National Grid plc at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.08 times EBITDA. This is generally considered low.
How Well Does NNGF.DE Make Money?
Net Profit Margin
For every $100 in sales, National Grid plc keeps $18.32 as profit after all expenses.
Operating Margin
Core operations generate 28.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.47 in profit for every $100 of shareholder equity.
ROA
National Grid plc generates $2.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Grid plc generates strong operating cash flow of $6.29B, reflecting robust business health.
Free Cash Flow
National Grid plc generates weak or negative free cash flow of $-3.79B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.75 in free cash annually.
FCF Yield
NNGF.DE converts -6.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NNGF.DE Stacks Against Its Sector Peers
| Metric | NNGF.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.52 | 19.18 | Neutral |
| ROE | 8.47% | 986.00% | Weak |
| Net Margin | 18.32% | -519.00% (disorted) | Strong |
| Debt/Equity | 1.19 | 1.78 | Strong (Low Leverage) |
| Current Ratio | 0.76 | 1.70 | Weak Liquidity |
| ROA | 2.99% | 289.00% | Weak |
NNGF.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Grid plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income