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

FairStock Score: 39/100 — MIXED

Key Financials

Strengths

• Attractive 3.6% dividend yield providing steady income returns
• Established organization with 31,654 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($26) with negative 227% margin of safety—limited downside protection
• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

National Grid Transco PLC National Grid PLC (NEW) American Depositary Shares is a large-cap utilities company valued at $86.2 billion. Revenue stands at $17.5 billion. From a quality standpoint, National shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.3 warrants caution. On valuation, the stock is reasonably priced at 21.5x earnings, with trades far above its Graham Number ($26) with no margin of safety. The 3.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer