Overview Dividends

(NGG) National Grid - Ratings and Ratios

Exchange: NYSE • Country: United Kingdom • Currency: USD • Type: Common Stock • ISIN: US6362744095

Electricity Transmission, Gas Distribution, Interconnectors, LNG Importation

Risk via 10d forecast
Volatility 20.2%
Value at Risk 5%th 33.2%
Relative Tail Risk -0.26%
Reward TTM
Sharpe Ratio 1.07
Alpha 25.09
Character TTM
Hurst Exponent 0.294
Beta 0.088
Beta Downside -0.052
Drawdowns 3y
Max DD 20.76%
Mean DD 6.03%
Median DD 4.92%

Description: NGG National Grid September 26, 2025

National Grid plc (NYSE:NGG) operates as a multi-utility, delivering electricity and gas across the United Kingdom and the United States. Its business is split into six segments: UK Electricity Transmission, UK Electricity Distribution, New England, New York, National Grid Ventures, and an “Other” segment that handles commercial property leasing and insurance activities.

The UK Electricity Transmission segment owns and operates the high-voltage network in England and Wales, while the UK Electricity Distribution segment serves customers in the East and West Midlands, the Southwest of England, and South Wales. In the U.S., the New England segment provides both electricity and gas supply, distribution, and high-voltage transmission, and the New York segment focuses on electricity and gas distribution and transmission.

National Grid Ventures expands the company’s strategic reach through cross-border electricity interconnectors (e.g., the IFA and Nemo projects) and the LNG import terminal at the Isle of Grain, positioning the firm to capture value from the ongoing energy transition.

Key financial and sector drivers to note: (1) NGG’s regulated asset base (RAB) grew ~7 % YoY in 2023, underpinning stable cash-flow generation; (2) EBITDA margins have hovered around 55 % in the last two fiscal years, reflecting the high-margin nature of regulated utilities; and (3) the company’s earnings are increasingly linked to decarbonization policies, such as the UK’s net-zero target and U.S. state-level clean-energy mandates, which drive investment in grid upgrades and interconnector capacity.

Founded in 1990 and headquartered in London, NGG benefits from long-term regulated returns but remains exposed to inflation-linked cost pressures, regulatory ratchet-up risk, and the capital intensity of renewable integration projects.

For a deeper quantitative assessment, you might explore ValueRay’s detailed financial models for NGG.

NGG Stock Overview

Market Cap in USD 76,984m
Sub-Industry Multi-Utilities
IPO / Inception 1999-10-07
Return 12m vs S&P 500 13.5%
Analyst Rating 4.0 of 5

NGG Dividends

Metric Value
Dividend Yield 5.34%
Yield on Cost 5y 9.24%
Yield CAGR 5y 22.26%
Payout Consistency 92.5%
Payout Ratio 7.0%

NGG Growth Ratios

Metric Value
CAGR 3y 16.57%
CAGR/Max DD Calmar Ratio 0.80
CAGR/Mean DD Pain Ratio 2.75
Current Volume 719.5k
Average Volume 566k

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (4.68b TTM) > 0 and > 6% of Revenue (6% = 2.21b TTM)
FCFTA -0.02 (>2.0%) and ΔFCFTA -2.42pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue -0.70% (prev -2.17%; Δ 1.47pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA 0.14 (>3.0%) and CFO 14.51b > Net Income 4.68b (YES >=105%, WARN >=100%)
Net Debt (45.03b) to EBITDA (13.69b) ratio: 3.29 <= 3.0 (WARN <= 3.5)
Current Ratio 0.97 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (990.0m) change vs 12m ago 33.78% (target <= -2.0% for YES)
Gross Margin 78.80% (prev 35.27%; Δ 43.54pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 37.17% (prev 28.45%; Δ 8.73pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio 3.76 (EBITDA TTM 13.69b / Interest Expense TTM 2.69b) >= 6 (WARN >= 3)

Altman Z'' 2.49

(A) -0.00 = (Total Current Assets 8.93b - Total Current Liabilities 9.19b) / Total Assets 103.76b
(B) 0.39 = Retained Earnings (Balance) 39.98b / Total Assets 103.76b
(C) 0.10 = EBIT TTM 10.12b / Avg Total Assets 99.00b
(D) 0.54 = Book Value of Equity 35.91b / Total Liabilities 66.54b
Total Rating: 2.49 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 55.76

1. Piotroski 4.50pt = -0.50
2. FCF Yield -2.40% = -1.20
3. FCF Margin -6.54% = -2.45
4. Debt/Equity 1.23 = 1.78
5. Debt/Ebitda 3.29 = -2.12
6. ROIC - WACC (= 7.53)% = 9.41
7. RoE 13.31% = 1.11
8. Rev. Trend 27.41% = 2.06
9. EPS Trend -46.41% = -2.32

What is the price of NGG shares?

As of November 19, 2025, the stock is trading at USD 77.53 with a total of 719,471 shares traded.
Over the past week, the price has changed by +0.28%, over one month by +1.20%, over three months by +9.66% and over the past year by +28.94%.

Is NGG a buy, sell or hold?

National Grid has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy NGG.
  • Strong Buy: 2
  • Buy: 1
  • Hold: 0
  • Sell: 1
  • Strong Sell: 0

What are the forecasts/targets for the NGG price?

Issuer Target Up/Down from current
Wallstreet Target Price 80.4 3.8%
Analysts Target Price 80.4 3.8%
ValueRay Target Price 94.9 22.4%

NGG Fundamental Data Overview November 16, 2025

Market Cap GBP = 58.51b (76.98b USD * 0.76 USD.GBP)
P/E Trailing = 19.7398
P/E Forward = 15.6495
P/S = 4.4036
P/B = 1.5873
P/EG = 1.5053
Beta = 0.555
Revenue TTM = 36.80b GBP
EBIT TTM = 10.12b GBP
EBITDA TTM = 13.69b GBP
Long Term Debt = 42.17b GBP (from longTermDebt, last fiscal year)
Short Term Debt = 3.62b GBP (from shortTermDebt, last quarter)
Debt = 45.91b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 45.03b GBP (from netDebt column, last quarter)
Enterprise Value = 100.36b GBP (58.51b + Debt 45.91b - CCE 4.06b)
Interest Coverage Ratio = 3.76 (Ebit TTM 10.12b / Interest Expense TTM 2.69b)
FCF Yield = -2.40% (FCF TTM -2.41b / Enterprise Value 100.36b)
FCF Margin = -6.54% (FCF TTM -2.41b / Revenue TTM 36.80b)
Net Margin = 12.72% (Net Income TTM 4.68b / Revenue TTM 36.80b)
Gross Margin = 78.80% ((Revenue TTM 36.80b - Cost of Revenue TTM 7.80b) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 100.0%)
Tobins Q-Ratio = 0.97 (Enterprise Value 100.36b / Total Assets 103.76b)
Interest Expense / Debt = 1.45% (Interest Expense 665.0m / Debt 45.91b)
Taxrate = 25.18% (208.0m / 826.0m)
NOPAT = 7.57b (EBIT 10.12b * (1 - 25.18%))
Current Ratio = 0.97 (Total Current Assets 8.93b / Total Current Liabilities 9.19b)
Debt / Equity = 1.23 (Debt 45.91b / totalStockholderEquity, last quarter 37.19b)
Debt / EBITDA = 3.29 (Net Debt 45.03b / EBITDA 13.69b)
Debt / FCF = -18.71 (negative FCF - burning cash) (Net Debt 45.03b / FCF TTM -2.41b)
Total Stockholder Equity = 35.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.51% (Net Income 4.68b / Total Assets 103.76b)
RoE = 13.31% (Net Income TTM 4.68b / Total Stockholder Equity 35.18b)
RoCE = 13.08% (EBIT 10.12b / Capital Employed (Equity 35.18b + L.T.Debt 42.17b))
RoIC = 11.55% (NOPAT 7.57b / Invested Capital 65.50b)
WACC = 4.03% (E(58.51b)/V(104.42b) * Re(6.34%) + D(45.91b)/V(104.42b) * Rd(1.45%) * (1-Tc(0.25)))
Discount Rate = 6.34% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 13.45%
Fair Price DCF = unknown (Cash Flow -2.41b)
EPS Correlation: -46.41 | EPS CAGR: -53.65% | SUE: 0.0 | # QB: 0
Revenue Correlation: 27.41 | Revenue CAGR: 8.56% | SUE: N/A | # QB: 0

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