National Grid: High Interest Rates Obscure Attractive Earnings Growth
National Grid owns and operates energy networks in the UK and the Northeastern United States. The former accounts for around 60% of the profits, the latter for 40%.
National Grid PLC NG.
Bulls Say, Bears Say
Bulls
National Grid has an enviable geographic footprint. The UK has the most favorable regulatory environment for energy networks in Western Europe, while US returns are higher than in most European countries.
Bears
National Grid will need to do another rights issue to fund its tremendous investment plan and potentially more cash injections into Joulent.
News
-
National Grid Trims Executive Committee Ranks in Simplification Push
-
National Grid to Invest $1.75 Billion in Joulent in U.S. Energy Push
-
National Grid Down Over 8%, on Pace for Largest Percent Decrease Since May 2024 — Data Talk
-
Eversource Energy Reports Significant Power Outages in Eastern Massachusetts
-
U.K. Approves $37 Billion in Funding for Energy Grid
-
National Grid Says Performance in Line With Expectations
Trading Information
- Previous Close Price
- GBX1,134.00
- Day Range
- GBX1,128.50–1,156.50
- 52-Week Range
- GBX1,068.00–1,428.50
- Bid/Ask
- GBX1,070.00 / GBX1,196.00
- Shares Outstanding
- 5.03B
- Market Cap
- GBX5.76T
- Volume/Avg
- 7M / 10M
Key Statistics
- Price/Earnings (Normalized)
- 16.63
- Price/Sales
- 3.19
- Dividend Yield (Trailing)
- 4.28%
- Dividend Yield (Forward)
- 4.28%
- Dividend Payment Schedule
- Jan, Jul
- Total Yield
- 4.28%
Company Profile
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 electricity networks in the United States, metering services and merchant transmission lines in the UK.
- Sector
- Utilities
- Industry
- Utilities - Regulated Electric
- Stock Style Box
- Large Core
- Total Number of Employees
- 33,026
- Website
- https://www.nationalgrid.com
Competitors
Valuation
|
Metric
|
NG.
|
IBE
|
ED
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.63 | 24.08 | 17.88 |
Price/Book Value | 1.44 | 2.31 | 1.49 |
Price/Sales | 3.19 | 3.27 | 2.13 |
Price/Cash Flow | 10.57 | 11.25 | 7.50 |
Price/Earnings
NG.
IBE
ED
Financial Strength
|
Metric
|
NG.
|
IBE
|
ED
|
|---|---|---|---|
Quick Ratio | 0.65 | 0.62 | 0.75 |
Current Ratio | 0.76 | 0.75 | 1.19 |
Interest Coverage | 3.31 | 4.54 | 3.27 |
Quick Ratio
NG.
IBE
ED
Profitability
|
Metric
|
NG.
|
IBE
|
ED
|
|---|---|---|---|
Return on Assets (Normalized) | 3.63% | 4.15% | 2.80% |
Return on Equity (Normalized) | 10.13% | 11.96% | 8.38% |
Return on Invested Capital (Normalized) | 5.67% | 6.96% | 5.78% |
Return on Assets
NG.
IBE
ED
Utilities - Regulated Electric Industry Comparables
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| NextEra Energy Inc
NEE
| LOCK|&g^pJ&R@ | LOCK|x%RZ | $159B | |||
| Southern Co
SO
| LOCK|g%<Y?q#^ | LOCK|@>tG! | $96B | |||
| Duke Energy Corp
DUK
| LOCK|$dYwd<! | LOCK|%dJ! | $89B | |||
| National Grid PLC ADR
NGG
| LOCK|JfPY>k& | LOCK|V&Kk | $76B | |||
| American Electric Power Co Inc
AEP
| LOCK|L&<Z#& | LOCK|s@G&z | $65B | |||
| Dominion Energy Inc
D
| LOCK|L$S@#xV | LOCK|$k%J | $53B | |||
| Entergy Corp
ETR
| LOCK|n%V#&<Y | LOCK|^^xx% | $48B | |||
| Xcel Energy Inc
XEL
| LOCK|WMk@>PK | LOCK|y$%? | $44B | |||
| Exelon Corp
EXC
| LOCK|^^$<TWP | LOCK|?MP$ | $42B | |||
| Consolidated Edison Inc
ED
| LOCK|QY$>^$ | LOCK|X?X | $38B |
United States