(NGG) National Grid - Ratings and Ratios
Electricity Transmission, Gas Distribution, Interconnectors, LNG Importation
Description: NGG National Grid
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 | 74,452m |
| Sub-Industry | Multi-Utilities |
| IPO / Inception | 1999-10-07 |
NGG Stock Ratings
| Growth Rating | 86.8% |
| Fundamental | 60.3% |
| Dividend Rating | 64.6% |
| Return 12m vs S&P 500 | 3.74% |
| Analyst Rating | 4.0 of 5 |
NGG Dividends
| Dividend Yield 12m | 4.00% |
| Yield on Cost 5y | 6.99% |
| Annual Growth 5y | 22.26% |
| Payout Consistency | 92.5% |
| Payout Ratio | 5.2% |
NGG Growth Ratios
| Growth Correlation 3m | 35.2% |
| Growth Correlation 12m | 80.8% |
| Growth Correlation 5y | 81.5% |
| CAGR 5y | 23.77% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.14 |
| CAGR/Mean DD 3y (Pain Ratio) | 3.95 |
| Sharpe Ratio 12m | 1.20 |
| Alpha | 11.62 |
| Beta | 0.342 |
| Volatility | 20.54% |
| Current Volume | 1083.5k |
| Average Volume 20d | 677.7k |
| Stop Loss | 74.6 (-3.1%) |
| Signal | 0.89 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (5.19b TTM) > 0 and > 6% of Revenue (6% = 2.29b TTM) |
| FCFTA -0.03 (>2.0%) and ΔFCFTA -3.57pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 9.71% (prev -2.10%; Δ 11.80pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 13.16b > Net Income 5.19b (YES >=105%, WARN >=100%) |
| Net Debt (46.36b) to EBITDA (14.34b) ratio: 3.23 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.35 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (982.2m) change vs 12m ago NaN% (target <= -2.0% for YES) |
| Gross Margin 62.57% (prev 33.43%; Δ 29.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 37.28% (prev 28.24%; Δ 9.04pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.80 (EBITDA TTM 14.34b / Interest Expense TTM 1.81b) >= 6 (WARN >= 3) |
Altman Z'' 2.76
| (A) 0.03 = (Total Current Assets 14.33b - Total Current Liabilities 10.62b) / Total Assets 106.74b |
| (B) 0.38 = Retained Earnings (Balance) 40.11b / Total Assets 106.74b |
| (C) 0.10 = EBIT TTM 10.47b / Avg Total Assets 102.53b |
| (D) 0.59 = Book Value of Equity 40.74b / Total Liabilities 68.92b |
| Total Rating: 2.76 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 60.31
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield -2.91% = -1.45 |
| 3. FCF Margin -7.31% = -2.74 |
| 4. Debt/Equity 1.26 = 1.76 |
| 5. Debt/Ebitda 3.23 = -2.06 |
| 6. ROIC - WACC (= 10.10)% = 12.50 |
| 7. RoE 15.62% = 1.30 |
| 8. Rev. Trend 44.30% = 3.32 |
| 9. EPS Trend -46.41% = -2.32 |
What is the price of NGG shares?
Over the past week, the price has changed by +3.26%, over one month by +8.15%, over three months by +8.12% and over the past year by +19.80%.
Is National Grid a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NGG is around 88.83 USD . This means that NGG is currently undervalued and has a potential upside of +15.44% (Margin of Safety).
Is NGG a buy, sell or hold?
- 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 | 79.5 | 3.3% |
| Analysts Target Price | 79.5 | 3.3% |
| ValueRay Target Price | 95.1 | 23.5% |
Last update: 2025-10-17 02:29
NGG Fundamental Data Overview
P/E Trailing = 18.8518
P/E Forward = 14.2045
P/S = 4.0511
P/B = 1.4164
P/EG = 1.3654
Beta = 0.342
Revenue TTM = 38.23b GBP
EBIT TTM = 10.47b GBP
EBITDA TTM = 14.34b GBP
Long Term Debt = 42.17b GBP (from longTermDebt, last quarter)
Short Term Debt = 4.54b GBP (from shortTermDebt, last quarter)
Debt = 47.54b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 46.36b GBP (from netDebt column, last quarter)
Enterprise Value = 96.06b GBP (55.45b + Debt 47.54b - CCE 6.93b)
Interest Coverage Ratio = 5.80 (Ebit TTM 10.47b / Interest Expense TTM 1.81b)
FCF Yield = -2.91% (FCF TTM -2.79b / Enterprise Value 96.06b)
FCF Margin = -7.31% (FCF TTM -2.79b / Revenue TTM 38.23b)
Net Margin = 13.58% (Net Income TTM 5.19b / Revenue TTM 38.23b)
Gross Margin = 62.57% ((Revenue TTM 38.23b - Cost of Revenue TTM 14.31b) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 100.0%)
Tobins Q-Ratio = 0.90 (Enterprise Value 96.06b / Total Assets 106.74b)
Interest Expense / Debt = 0.36% (Interest Expense 169.0m / Debt 47.54b)
Taxrate = 23.90% (709.0m / 2.97b)
NOPAT = 7.97b (EBIT 10.47b * (1 - 23.90%))
Current Ratio = 1.35 (Total Current Assets 14.33b / Total Current Liabilities 10.62b)
Debt / Equity = 1.26 (Debt 47.54b / totalStockholderEquity, last quarter 37.80b)
Debt / EBITDA = 3.23 (Net Debt 46.36b / EBITDA 14.34b)
Debt / FCF = -16.59 (negative FCF - burning cash) (Net Debt 46.36b / FCF TTM -2.79b)
Total Stockholder Equity = 33.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.86% (Net Income 5.19b / Total Assets 106.74b)
RoE = 15.62% (Net Income TTM 5.19b / Total Stockholder Equity 33.24b)
RoCE = 13.89% (EBIT 10.47b / Capital Employed (Equity 33.24b + L.T.Debt 42.17b))
RoIC = 14.11% (NOPAT 7.97b / Invested Capital 56.49b)
WACC = 4.01% (E(55.45b)/V(102.99b) * Re(7.21%) + D(47.54b)/V(102.99b) * Rd(0.36%) * (1-Tc(0.24)))
Discount Rate = 7.21% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 15.21%
Fair Price DCF = unknown (Cash Flow -2.79b)
EPS Correlation: -46.41 | EPS CAGR: -53.65% | SUE: 0.0 | # QB: 0
Revenue Correlation: 44.30 | Revenue CAGR: 17.63% | SUE: N/A | # QB: 0
Additional Sources for NGG Stock
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