National Grid plc (LSE:NG.) have seen a year over year change of sales growth of -3.4070%. The 37432088 market value company based out of Great Britain is an important player in the Gas, Water & Multiutilities sector.
While sales growth can be a key driver for a company’s stock performance, there are many other factors to consider as well. Here we’ll take a look at several other notable indicators.
With equity investing, there will constantly be worries and fears. The volatility in the market that accompanies these fears may trick investors into thinking the next bear market is on the doorstep. During a market-wide sell off, many stocks may experience the pain. Over time, many may gain back the ground they lost and return to previous levels. The biggest names may be the ones to recoup the losses the quickest. However, many investors might get stuck waiting for a rebound that just isn’t going to happen. Having the flexibility to adapt to market conditions may help repair a damaged portfolio. Sometimes a readjustment may be needed in order to regain some confidence. As the next round of earnings reports start to come in, investors will be keeping a close watch to see which companies produce the largest surprises, both positive and negative.
So how has National Grid plc (LSE:NG.) performed in terms of returns? The ROIC quality score stands at 10.550275 whilet he actual return on invested capital holds at 0.067152. National Grid plc’s book to market ratio is at 0.676635 while the book to market mean difference is 0.2835. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued.
In glancing at some key ratios we note that the Piotroski F-Score is at 7 (1 to 10 scale) and the ERP5 rank is at 8095. The Q.I. Value of National Grid plc (LSE:NG.) currently reads 31 on the Quant scale. The Free Cash Flow score of 0.092411 is also swinging some momentum at investors. The Great Britain based firm is currently valued at 98245.
Some other notable ratios include the Accrual Ratio of 0.034924, the Altman Z score of 1.239439, a Montier C-Score of 3 and a Value Composite rank of 25.
In looking at some Debt ratios, National Grid plc (LSE:NG.) currently has a debt to equity ratio of 1.43107 and a Free Cash Flow to Debt ratio of 0.025828. This ratio gives insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 8.20044. This ratio reveals how easily a firm is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. National Grid plc’s ND to MV current stands at 0.905683. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Doing the necessary homework, investors have a wealth of information about publically traded stocks. Figuring out which ones are going to steadily outperform can be a tricky task. Many investors opt to follow what covering sell-side analysts think about certain stocks. Following analyst updates to estimates and targets may help gauge overall stock sentiment. However, solely following analyst views may not be enough to put the entire investing puzzle together. Technical traders may want to still keep tabs on the fundamentals, and vice-versa.
National Grid plc (LSE:NG.) are showing an adjusted slope average of the past 125 and 250 days of -0.988. The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2). The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.087551 for National Grid plc (LSE:NG.). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.
Investors may be looking into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be hard pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be exactly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may help fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also help keep the important investing factors in focus. Covering all the bases may help increase the odds of success when trading equities.
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