National Grid Transco PLC National Grid PLC (NEW) American Depositary Shares (NGG)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose earnings I can understand and trust over a decade. National Grid is a regulated utility that transmits and distributes electricity and gas in the UK and US. Regulated networks can be excellent moats because customers need the service, competing wires are rare, and regulators usually allow a return. But that moat is bounded by politics and regulators. The financials I see are not those of a fortress. As FairStock calculations, debt-to-equity is 1.21, ROCE is 3.01%, ROE is 8.41%, Piotroski is 1/9, and Altman Z is 1.27. Those numbers tell me the business earns modest returns on a large asset base and leans on debt. The dividend yield is 4.22%, and beta is 0.59, which fits a defensive profile, but a yield is only as safe as the cash flow behind it. On valuation, at the $78.23 close on 2026-10-13, FairStock shows P/E 17.82 and P/B 8.79. FairStock's Graham Number is $27.93, producing a margin of safety of -180.09%, a wide gap between price and a conservative asset-and-earnings value. The FairStock Score is 43/100. Growth data is not available in the filed figures I was given, and the computed Lynch category is none because there are 0 years of filed results versus the 3 needed. So I see a necessary, low-beta utility with a reasonable-looking earnings multiple but weak balance-sheet and return metrics, and a price that demands improvement. I would want evidence that regulated capital investment is earning adequate returns before calling it a bargain.

In plain English: National Grid runs electricity and gas networks in the UK and the US. The business provides an essential service, so demand is likely steady, but its finances show heavy borrowing and only modest returns on the money invested. At the recent price of $78.23, the shares look expensive compared with the company's accounting value and a conservative estimate of what its earnings are worth, even though the dividend yield is 4.22%.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer