UK stock alert

UK

CLOSING UPDATE: National Grid decreases gains by 0.1%, led Gas, water & multiutilities sector higher 18 June 2018 19:20 BST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

National Grid, the largest gas, water & multiutilities company by market capitalisation in the United Kingdom, has increased 0.3% to trade at GBX827.20 vs. the Gas, water & multiutilities sector which strengthened 5.5 points (or 0.2%) to 2,215.4. Representing a weighting of about 56.2% of the sector, the stock accounted for 62.7% of today's gain. Trading volume was 65% of average at the end of the day. Compared with the FTSE 100 Index which fell 2.6 points (or 0.03%) in the day, this represented a relative price increase of 0.3%.

Technical indicators complementing today's significant uptrend:

+ The positive 2.88 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price to Book of 2.1 [3.1]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 32.2%.

+ Interest cover is less leveraged at 38.7 times.

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ Net profit margin has averaged 13.2% in the last 3 years. This is better than the sector average of 7.5% and suggests a high margin of safety.

Note

National Grid today is at a discount of 15.6% to the 12-month high of GBX980.19 on 20 Jun, 2017. It is at a premium of 16.9% to the 12-month low of GBX707.58 on 15 Feb, 2018.

Bearish Signals:

The price decreased 0.6% in the last week.

As per the Du Pont analysis, Return on Equity of 8.9% is lower than sector average of 16.0%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 1.9 [1.0]

Dividend yield of 5.5% [9.0%]

Return on Equity 8.9% [16.0%]

Return on Capital Employed 4.1% [4.6%]

TODAY'S ALERT

Morning Alert: National Grid increases 0.4%, leads Gas, water & multiutilities sector higher

18 June 2018 10:52 BST

National Grid PLC (L:NG.) has increased 0.4% to trade at GBX827.90 vs. the Gas, water & multiutilities sector which strengthened 7.8 points (or 0.3%) to 2,217.8. Representing a weighting of about 56.2% of the sector, the stock accounted for 58.4% of today's gain. Trading volume was 89% of average so far today.

National Grid PLC (L:NG.; LON:NG.; LN:NG.)

ISIN: GB00BDR05C01

PermID: 4295894468

Source: www.BuySellSignals.com