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National Grid PLC NG.

Morningstar Rating
GBX 892.40 −6.40 (0.71%)
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Company Report

European Utilities Edged Up in Q2 on Soaring Power Prices, High Interest Rates Still a Drag

Utilities have reversed part of their first quarter’s fall, thanks to a strong rebound in power prices. Moreover, the deep undervaluation of renewables developers has driven takeovers by big investment firms at very high multiples. Neoen’s main shareholders accepted an offer at 18 times the EBITDA. The sector is still significantly lagging the market in 2024 because of high interest rates. Should they fall, it would boost the sector.

Price vs Fair Value

NG. is trading at a 678% premium.
Price
GBX 898.80
Fair Value
GBX 445.00
Uncertainty
Low
1-Star Price
GBX 2,553.10
5-Star Price
GBX 486.00
Economic Moat
Wddk
Capital Allocation
Mhzqmgjj

Bulls Say, Bears Say

Bulls

The sale of Grain LNG, renewables assets, and ESO should command high multiples.

Bears

The highly dilutive rights issue reflects poor capital allocation.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
GBX 898.80
Day Range
GBX 886.40901.40
52-Week Range
GBX 645.001,052.85
Bid/Ask
GBX 892.00 / GBX 892.40
Market Cap
GBX 4.29 Tril
Volume/Avg
2.0 Mil / 15.8 Mil

Key Statistics

Price/Earnings (Normalized)
10.70
Price/Sales
1.83
Dividend Yield (Trailing)
6.34%
Dividend Yield (Forward)
6.34%
Total Yield
6.34%

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 and electricity generation in the United States, metering services, merchant transmission lines in the UK, and the Grain (UK) liquefied natural gas facility.
Sector
Utilities
Industry
Utilities - Regulated Electric
Stock Style Box
Large Value
Total Number of Employees
31,425

Competitors

Valuation

Metric
NG.
ED
IBE
Price/Earnings (Normalized)
10.7018.5513.10
Price/Book Value
1.221.451.44
Price/Sales
1.832.161.69
Price/Cash Flow
6.617.317.67
Price/Earnings
NG.
ED
IBE

Financial Strength

Metric
NG.
ED
IBE
Quick Ratio
0.640.660.60
Current Ratio
0.910.990.77
Interest Coverage
2.633.134.98
Quick Ratio
NG.
ED
IBE

Profitability

Metric
NG.
ED
IBE
Return on Assets (Normalized)
3.03%2.78%4.79%
Return on Equity (Normalized)
9.72%8.52%14.40%
Return on Invested Capital (Normalized)
5.36%5.87%7.51%
Return on Assets
NG.
ED
IBE
See how this stock stacks up to its competitors with Morningstar Investor

Utilities - Regulated Electric Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NextEra Energy Inc
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National Grid PLC ADR
NGG
YtgrmwwkkWjz$54.7 Bil
PG&E Corp
PCG
VncxplyzSqgn$46.2 Bil
American Electric Power Co Inc
AEP
KysgsqnbZpqmg$45.9 Bil
Dominion Energy Inc
D
GytdrdxQbrlqmd$41.2 Bil
Public Service Enterprise Group Inc
PEG
CxdtkjclFtcfcth$36.4 Bil
Exelon Corp
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XzdpfxhrpMdtlzcj$34.8 Bil
Consolidated Edison Inc
ED
NkzwsykRyszh$31.2 Bil

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