NGG

National Grid plc

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Utilities

industry

Regulated Electric

Exchange

NYSE

County of HQ

United Kingdom

Next Earnings Date

05/14/2026

Business Summary

National Grid plc operates as a regulated utility, primarily generating cash through electricity transmission and distribution. Its competitive moat lies in its monopolistic control over essential infrastructure, ensuring steady demand. The regulatory environment provides a stable revenue stream, albeit with limited growth potential. Customer lock-in is achieved through long-term contracts and essential service provision, securing its market position.

 


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VALUATION

P/E

149.72

Market Cap ($M USD)

$86.87B

Forward P/E

15.12

PEG

0.02

PRICE TO SALES

3.64

PRICE TO BOOK

1.69

EV / EBITDA

15.12

5-Year Average P/E

Free Cash Flow Yield

-3.49%

DCF Value

$-80.63

Graham Number

$9.95

Price to FCF

-28.63

EV to FCF

-48.90

Earnings Yield

4.56%

FCF Yield

-3.49%

DIVIDEND

Yield

3.70%

Annual Payout

$0.47

Payout Ratio

56.13%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.58

Next Year EPS Growth Estimate

$5.77

Next Year Revenue Growth Estimate

$3.09T

Return on Equity (ROE)

7.66%

FREE CASH FLOW

Operating Margin

29.46%

Debt-to-Equity

1.26

Piotroski F-Score

6

Altman Z-Score

1.74

Return on Invested Capital (ROIC)

5.45%

Current Ratio

0.97

Quick Ratio

0.90

Net Debt to EBITDA

6.27

Interest Coverage

3.74

Gross Profit margin

100.00%

FCF PER SHARE

$-0.45

REVENUE PER SHARE

$3.55

Analyze NGG on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to have misjudged NGG’s valuation, with its snapshot price trading above its DCF value, suggesting potential overvaluation. The Forward P/E of 15.12 is more reasonable compared to its sky-high trailing P/E, indicating expectations of significant earnings growth. However, the Altman Z-score of 1.74 raises red flags about financial stability, hinting at potential distress. The Earnings Yield of 4.56% is modest, reflecting a cautious stance on profitability. Overall, the financial health appears mixed, with growth prospects overshadowed by valuation concerns.

AI Exposure / Tech Reliance

As a regulated electric utility, NGG is not at the forefront of AI or tech innovation. However, its industry is gradually integrating smart grid technologies, which could enhance efficiency and reliability. The company's focus remains on infrastructure and regulatory compliance rather than cutting-edge tech adaptation.

The Bull Case

For the value-driven investor, NGG offers compelling institutional tailwinds. The robust operating margin of 29.46% and a Piotroski F-Score of 6 suggest operational efficiency and financial health. Despite a negative FCF Yield, the company's ROIC of 5.45% indicates effective capital allocation. These metrics point to a business with solid pricing power and potential for stable returns.

The Bear Case

NGG's structural weaknesses are glaring, particularly in its cash flow metrics. The negative FCF Yield and a Price to FCF ratio of -28.63 highlight severe cash flow issues. Trading near its 52-week high, the stock appears technically overextended. Additionally, the Price/Book ratio of 1.69 suggests a premium valuation, which may not be justified given the financial risks.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$85.50

Institutional Ownership %

1-Year Beta

0.62

Insider Buying % (6 Mo)

Distance to 52-Week High

8.42%

Distance to 52-Week Low

23.15%

EARNINGS SURPRISE %

-54.76%

50-DAY SMA

$87.65

200-DAY SMA

$79.40

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.