GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » National Grid PLC (NYSE:NGG) » Definitions » Piotroski F-Score

NGG (National Grid) Piotroski F-Score : 4 (As of Dec. 13, 2024)


View and export this data going back to 1999. Start your Free Trial

What is National Grid Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

National Grid has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for National Grid's Piotroski F-Score or its related term are showing as below:

NGG' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 7
Current: 4

During the past 13 years, the highest Piotroski F-Score of National Grid was 7. The lowest was 3. And the median was 6.


National Grid Piotroski F-Score Historical Data

The historical data trend for National Grid's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

National Grid Piotroski F-Score Chart

National Grid Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 6.00 5.00 4.00 4.00

National Grid Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 4.00 - 4.00 -

Competitive Comparison of National Grid's Piotroski F-Score

For the Utilities - Regulated Electric subindustry, National Grid's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


National Grid's Piotroski F-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, National Grid's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where National Grid's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was $2,910 Mil.
Cash Flow from Operations was $8,817 Mil.
Revenue was $25,222 Mil.
Gross Profit was $18,493 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was (112496.359 + 124936.468) / 2 = $118716.4135 Mil.
Total Assets at the begining of this year (Mar23) was $112,496 Mil.
Long-Term Debt & Capital Lease Obligation was $53,638 Mil.
Total Current Assets was $13,188 Mil.
Total Current Liabilities was $14,471 Mil.
Net Income was $9,462 Mil.

Revenue was $26,285 Mil.
Gross Profit was $15,820 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was (124980.237 + 112496.359) / 2 = $118738.298 Mil.
Total Assets at the begining of last year (Mar22) was $124,980 Mil.
Long-Term Debt & Capital Lease Obligation was $48,580 Mil.
Total Current Assets was $11,059 Mil.
Total Current Liabilities was $11,080 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

National Grid's current Net Income (TTM) was 2,910. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

National Grid's current Cash Flow from Operations (TTM) was 8,817. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=2909.784/112496.359
=0.02586558

ROA (Last Year)=Net Income/Total Assets (Mar22)
=9462.379/124980.237
=0.075711

National Grid's return on assets of this year was 0.02586558. National Grid's return on assets of last year was 0.075711. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

National Grid's current Net Income (TTM) was 2,910. National Grid's current Cash Flow from Operations (TTM) was 8,817. ==> 8,817 > 2,910 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=53637.865/118716.4135
=0.45181507

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=48580.097/118738.298
=0.40913587

National Grid's gearing of this year was 0.45181507. National Grid's gearing of last year was 0.40913587. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=13188.056/14471.41
=0.91131797

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=11059.466/11080.097
=0.99813801

National Grid's current ratio of this year was 0.91131797. National Grid's current ratio of last year was 0.99813801. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

National Grid's number of shares in issue this year was 807.082. National Grid's number of shares in issue last year was 799.901. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=18493.011/25222.363
=0.73319899

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=15820.388/26285.194
=0.6018745

National Grid's gross margin of this year was 0.73319899. National Grid's gross margin of last year was 0.6018745. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=25222.363/112496.359
=0.22420604

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=26285.194/124980.237
=0.2103148

National Grid's asset turnover of this year was 0.22420604. National Grid's asset turnover of last year was 0.2103148. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+0+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

National Grid has an F-score of 5 indicating the company's financial situation is typical for a stable company.

National Grid  (NYSE:NGG) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


National Grid Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of National Grid's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


National Grid Business Description

Address
1-3 Strand, London, GBR, WC2N 5EH
National Grid owns and operates the electric transmission system in England and Wales. It sold the bulk of its UK gas transmission business in fiscal 2023 to fund the acquisition of PPL's UK power distribution assets. In the Northeastern United States, it serves electricity and gas customers combined in three states. It also owns regulated transmission and electricity generation in the United States, metering services, merchant transmission lines in the UK, and the Grain (UK) liquefied natural gas facility.