# National Grid plc (NG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Electric Utilities. Price 1142p, market value 57.4 billionp.

## Valuation
- **P/E (trailing): 17.6×** (5-yr avg 1563.5×, 3-yr avg 1833.9×). National Grid plc trades at 17.6× trailing earnings, well below its own five-year average of 1563.5×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 11.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.40**. A PEG of 1.40 is in the range usually read as fairly priced for its growth.
- **Price / sales: 1.6×**. Each dollar of revenue is priced at 1.6×.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.9×**. Enterprise value is 6.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -11.3%** (5-yr avg -0.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 5.7%**. The inverse of the P/E: 5.7% of the price is earned each year.

## Profitability
- **Gross margin: 82.0%**. National Grid plc keeps 82.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 29.4%**. 29.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 18.3%**. 18.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.2%**. 8.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 9.9%**. Return on all capital, debt included, is 9.9%.
- **Return on assets: 5.7%**. Each dollar of assets produces 5.7% of profit.

## Growth
- **Revenue growth (1 yr): -3.8%** (3-yr -6.5%/yr, 5-yr 5.3%/yr). Revenue fell 3.8% over the last year, against 5.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 8.3%** (3-yr -32.6%/yr, 5-yr 7.2%/yr). Earnings per share rose 8.3%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.19**. Debt is 1.19 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 3.0×**. It would take 3.0 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 3.9×**. Operating profit covers interest 3.9× over, a safe margin.
- **Current ratio: 0.76** (quick 0.71). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.32**. A Z-score of 1.32 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.21%** (0p per share, trailing). National Grid plc yields 4.21%, an income-level yield.
- **Payout ratio: 50%**. 50% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): 1.0%/yr** (1-yr -14.1%). The dividend has grown 1.0% a year over five years.
- **Shareholder yield: 4.1%**. Dividends plus net buybacks return 4.1% of the market value a year.

## Price and momentum
- **Total return (1 yr): 12.8%** (YTD 0.9%, 3-mo -5.5%). The shares are up 12.8% over twelve months including dividends.
- **From 52-week high: -20.1%** (11.4% above the low). Trading 20% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 0.89** (volatility 21%). Beta of 0.89 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NG.L · Page: https://foliofundamentals.com/stocks/ng.l

Not investment advice.