National Grid (NGG) Fundamental Analysis: Revenue, Earnings & Valuation

2.13 / 10

Underperform

NGG's fundamental score is low (2.1/10), indicating poor financial health. Key concerns include a negative YoY net profit growth of -42.64% and a high ratio of parent company profit to total profit (99.85%), which suggests limited earnings diversification. Although ROE (1.97%) and interest coverage ratio (2.00) are present, they are outweighed by other red flags such as negative PB-ROE (-0.36) and Profit-MV (-0.63). These metrics collectively point to a defensive stance for investors.

Analysis Checks(5/10)

Revenue-MV

Value-0.26

Score0/3

Weight3.83%

1M Return0.79%

Annualized return on equity (%)

Value3.94

Score2/3

Weight10.01%

1M Return1.68%

Net profit attributable to parent company shareholders / Net profit (%)

Value99.85

Score1/3

Weight5.87%

1M Return1.05%

Profit-MV

Value-0.63

Score2/3

Weight13.70%

1M Return1.94%

Net income-Revenue

Value-0.08

Score0/3

Weight8.04%

1M Return1.52%

PB-ROE

Value-0.36

Score1/3

Weight9.22%

1M Return1.58%

Cash-UP

Value-0.06

Score0/3

Weight10.23%

1M Return2.10%

Interest coverage ratio (EBIT / Interest expense) (%)

Value2.00

Score2/3

Weight12.53%

1M Return2.10%

ROE (%)

Value1.97

Score2/3

Weight10.01%

1M Return1.68%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value-42.64

Score3/3

Weight16.55%

1M Return2.43%

Is NGG fundamentally strong?

NGG scores 2.13/10 on fundamentals and holds a Premium valuation at present. Backed by its 1.64% ROE, 16.46% net margin, 23.38 P/E ratio, 1.75 P/B ratio, and 35.16% earnings growth, these metrics solidify its Underperform investment rating.