National Grid plc (NGG) AI Stock Analysis

National Grid plc operates as an electricity and gas transmission and distribution company across the United Kingdom and the United States. Its UK operations include Electricity Transmission across England and Wales, Electricity Distribution serving the Midlands, South West England, and South Wales, and the Electricity System Operator balancing supply and demand across Great Britain. In the US, its New England and New York segments deliver electricity and gas distribution and manage transmission networks. National Grid also operates electricity interconnectors, LNG importation at the Isle of Grain, commercial property leasing and sales, and renewable energy project sales.

Revenue fell from $21.66B in FY2023 to $19.85B in FY2024, $18.38B in FY2025, and $17.97B in FY2026, representing a 5-year revenue CAGR of -0.5% from FY2021 to FY2026. Despite top-line declines, operating margin increased to 32.7% in FY2026, up from 26.8% in FY2025 and 22.5% in FY2024. Net income expanded to $3.29B in FY2026 with a net margin of 18.3%, up from $2.90B in FY2025 and $2.29B in FY2024. For the trailing twelve months ending March 31, 2026, revenue was $17.69B, with quarterly revenue growing 2.0% year-over-year and quarterly earnings up 14.4%.

As of March 31, 2026, National Grid held $2.83B in cash and short-term investments against total debt of $46.76B, leaving net debt at $43.93B. Shareholders' equity stood at $39.30B, resulting in a debt-to-equity ratio of 1.19 and a current ratio of 0.76. Operating cash flow in FY2026 was $6.33B. Capital expenditures of $10.15B led to free cash flow of -$3.82B. Cash outlays included $1.65B in dividends paid and $1.0M in share buybacks, while share count grew 37.6% over five years.

National Grid trades at a trailing P/E of 18.5x and a forward P/E of 12.6x, compared to medians of 20.6x and 17.2x for its US-listed Utilities peers. Its enterprise value stands at $134.70B, with an EV/EBITDA of 12.5x compared to the peer median of 12.1x, and a price-to-sales multiple of 4.6x versus the peer median of 2.4x. Over the past year, NGG returned 11.4% while the S&P 500 (SPY) returned 16.8%. Over five years, the stock gained 79.2% versus 83.0% for the index.

National Grid pays a semiannual dividend with an annualized forward payout of $3.24, representing a dividend yield of 3.99%. Its payout ratio is 72.0%, and the company has paid dividends for 22 consecutive years. Over the trailing five years, dividend growth annualized at -0.1%. The last ex-dividend date occurred on May 29, 2026.

Wall Street coverage consists of 2 Strong Buy, 1 Buy, 1 Hold, and 1 Sell ratings. The mean price target is $89.94, representing a 10.7% premium over the last close of $81.22. Consensus estimates project FY2027 revenue of $19.44B and EPS of $6.10, followed by FY2028 revenue of $21.22B and EPS of $6.63 based on 3 analysts. The company beat EPS estimates in 1 of the last 4 quarters, with the next earnings release scheduled for November 5, 2026.

This page is an AI-written research summary of National Grid plc (NGG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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