Fact based stock research
National Grid (LSE:NG.)

GB00BDR05C01

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

National Grid stock research in summary

nationalgrid.com

ANALYSIS: With an Obermatt Combined Rank of 60 (better than 60% compared with investment alternatives), National Grid (Multi-Utilities, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of National Grid are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 61) and are safely financed (Safety Rank of 56, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 60, is a buy recommendation based on National Grid's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company National Grid exhibits low value (Obermatt Value Rank of 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 61). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 56) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	49
Growth Rank	61
Safety Rank	56
Combined Rank	60

Country	United Kingdom
Industry	Multi-Utilities
Index	FTSE All Shares, FTSE 100, FTSE 350, Employee Focus EU, Energy Efficient, Diversity Europe, Low Waste, Recycling
Size class	XX-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: National Grid

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	32	47	56	49
GROWTH
GROWTH	21	71	85	61
SAFETY
SAFETY	32	16	39	56
SENTIMENT
SENTIMENT	n/a	61	90	^new
360° VIEW
360° VIEW	n/a	49	86	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better National Grid is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	32	47	56	49
GROWTH
GROWTH	21	71	85	61
SAFETY
SAFETY	32	16	39	56
COMBINED
COMBINED	21	40	72	60

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of National Grid the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), National Grid shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for National Grid. Expected dividend yields are higher than for 65% of comparable companies (a Dividend Yield rank of 65), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 67, which means that the stock price is lower compared with invested capital than for 67% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 25 which means that the stock price compared with what market professionals expect for future profits is higher than for 75% of comparable companies, indicating a low value concerning National Grid's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for National Grid with a rank of 45. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 55% of comparable companies, indicating a low value concerning National Grid's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on National Grid's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, National Grid may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	19	41	36	25
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	30	47	36	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33	55	69	67
DIVIDEND YIELD
DIVIDEND YIELD	76	71	71	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	32	47	56	49

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of National Grid; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), National Grid shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for National Grid. Profit Growth has a rank of 67 which means that currently professionals expect the company to grow its profits more than 67% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 55, and Stock Returns has a rank of 57 which means that the stock returns have recently been above 57% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 45 (55% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	19	19	64	45
PROFIT GROWTH
PROFIT GROWTH	83	62	53	67
CAPITAL GROWTH
CAPITAL GROWTH	n/a	70	55	55
STOCK RETURNS
STOCK RETURNS	20	81	67	57
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	21	71	85	61

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of National Grid.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 56 (better than 56% compared with alternatives), the company National Grid has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of National Grid is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for National Grid and the other two below average. Refinancing is at 73, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. But Leverage is high with a rank of 37, meaning the company has an above-average debt-to-equity ratio. It has more debt than 63% of its competitors. Liquidity is also on the riskier side with a rank of 44, meaning the company generates less profit to service its debt than 56% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 56 (better than 56% compared with alternatives), National Grid has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for National Grid are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with National Grid and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	31	40	50	37
REFINANCING
REFINANCING	75	11	37	73
LIQUIDITY
LIQUIDITY	4	39	35	44
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	32	16	39	56

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of National Grid and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	3	41	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	58	92	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	99	98	^new
MARKET PULSE
MARKET PULSE	n/a	44	49	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	61	90	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for National Grid.
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