National Grid NG.L
National Grid is a British utility that operates electricity and gas transmission and distribution networks in the UK and the northeastern US, with revenues regulated by tariffs. National Grid has weak financial health (net debt/EBITDA of 6.39) and a very low dividend yield (0.04%), although its operating margin is solid (32.6%). The rise in long-term interest rates pressures its valuation and makes its debt more expensive.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
National Grid is a British utility that operates electricity and gas transmission and distribution networks in the UK and the northeastern US, with revenues regulated by tariffs. National Grid has weak financial health (net debt/EBITDA of 6.39) and a very low dividend yield (0.04%), although its operating margin is solid (32.6%). The rise in long-term interest rates pressures its valuation and makes its debt more expensive.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.6 |
| Quality / Moat | 4.4 |
| Valuation | 4.6 |
| Growth | 5.6 |
| Dividend | 3.5 |
| Momentum | 5.7 |
| Risk & Context | 7.8 |
OVERALL SCORE: 5.3/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and the expectation of higher-for-longer rates in the UK pressure the value of National Grid's long-term regulated cash flows. However, as a regulated utility, the impact is mitigated by the tariff adjustment mechanism, so the penalty is moderate.
News considered in the analysis
- 3 UK Utility Stocks for More Predictable Cash Flows — Listado genérico sin información específica sobre National Grid.
- 3 UK Dividend Stocks Worth Watching While Interest Rates Stay On Hold — Listado genérico sin información específica sobre National Grid.
- European Equities Traded in US as ADRs Rise in Wednesday Trading — Movimiento de mercado sin información específica sobre National Grid.
- After Plunging 7.8% in 4 Weeks, Here's Why the Trend Might Reverse for National Grid (NGG) — Artículo de análisis técnico que sugiere un posible rebote tras una caída reciente; impacto moderado y especulativo.
- NGG or ORA: Which Is the Better Value Stock Right Now? — Comparativa genérica de valor sin información concluyente sobre National Grid.
Verdict: Hold, given the high leverage and pressure from interest rates, despite regulatory stability.
Main risk: The high leverage (net debt/EBITDA of 6.39) and sensitivity to long-term interest rates, which make its debt more expensive and reduce the value of its regulated cash flows.
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