Stock on Watch: National Grid plc (NGG)

Company Profile:

National Grid plc transmits and distributes electricity and natural gas. It operates through UK Electricity Transmission, UK Gas Transmission, and US Regulated segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,200 kilometers of overhead line; 1,500 kilometers of underground cable; and 342 substations located in England and Wales. It also operates the Scottish networks. The UK Gas Transmission segment owns and operates gas transmission systems that include approximately 7,660 kilometers of high pressure pipe and 618 above-ground installations in Great Britain. The US Regulated segment jointly owns and operates transmission facilities across upstate New York, Massachusetts, New Hampshire, Rhode Island, and Vermont; and owns and operates electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. Its assets comprise 14,219 kilometers of overhead lines; 377 transmission substations; and 763 distribution substations. National Grid plc was founded in 1990 and is headquartered in London, the United Kingdom.

Recent News:

On May 17, 2018, the company said that its fiscal 2018 pretax profit rose 24%. The utility company made a pretax profit of 2.71 billion pounds ($3.66 billion) for the year ended March 31 compared with GBP2.18 billion a year earlier.

On Feb 2, 2018, the company said that it estimates it will have a non-cash tax credit of around $2 billion in fiscal 2018 following tax reform in the U.S.

Its Board of Directors has declared dividends for the period Jan. 1, 2018 to March 31, 2018. The preferred stock dividends are payable on April 2, 2018, to holders of record on March 19, 2018.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NGG’s strengths can be seen in its strong profitablity and robust solvency compared with its peers. Its net income has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic Oscillator. RSI(14) stands at 48.38 with positive bias. We rate National Grid plc (NGG) a STRONG BUY.

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