# National Grid (NG.LSE)

Canonical: https://gigainvestors.com/s/NG.LSE

Analysis as of: 2026-10-16T07:33:45.546Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 1,193.50 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.23×

- FY2019: 0.19×

- FY2020: 0.17×

- FY2021: 0.18×

- FY2022: 0.24×

- FY2023: 0.23×

- FY2024: 0.23×

- FY2025: 0.27×

- FY2026: 0.33×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 67.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.7%

- ROIC, second-lowest year: 4.3%

- Typical minus recent gross margin: 67.3 pp

- Typical gross margin (annual median): 100.0%

- Recent gross margin (lower of latest and 3-year median): 32.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 33.3%

- ROIC including acquisitions, ten-year median: -2.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.0%

- FY2018: 9.4%

- FY2019: 5.9%

- FY2020: 4.0%

- FY2021: 4.3%

- FY2022: 5.0%

- FY2023: 6.2%

- FY2024: 5.2%

- FY2025: 5.5%

- FY2026: 6.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.07×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -1.2B

- Net income, five-year total: GBP 19B

- Return on incremental invested capital: 4.7%

- Working capital / revenue, annual change: -1.4 pp

- Working capital / revenue, change between three-year averages: -9.8 pp

- Working capital / revenue, final three-year average: 2.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.95×

- FY2023: 0.98×

- FY2024: -1.18×

- FY2025: -1.29×

- FY2026: -1.44×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.0% vs 5.5%

- Per-share earnings: 0.97 to 0.59 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.3%

- Ordinary dilution, 5-year annual growth: 6.6%

- Market cap gain: GBP 28B

- Cumulative retained earnings: GBP 19B

- Diluted shares, 10-year annual growth: 3.3%

- Diluted shares, 5-year annual growth: 6.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -6.1%

- Per-share value change: GBP -0.39

- Per-share value, starting three-year median: GBP 0.97

- Per-share value, ending three-year median: GBP 0.59

- Buybacks concentrated in cheaper years (correlation): 0.32

- Average buyback yield: 0.5%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 9.6B

- Cumulative net income, 10 years: GBP 34B

- ROIC, first three-year median: 8.0%

- ROIC, last three-year median: 5.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 2.42

- FY2018: GBP 0.97

- FY2019: GBP 0.42

- FY2020: GBP 0.36

- FY2021: GBP 0.45

- FY2022: GBP 0.59

- FY2023: GBP 1.94

- FY2024: GBP 0.50

- FY2025: GBP 0.59

- FY2026: GBP 0.65

### accounting: pass

- Sloan accruals: -2.8%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.92×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.34×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 3.9%

- FY2018: -1.6%

- FY2019: -4.5%

- FY2020: -5.0%

- FY2021: -4.2%

- FY2022: -4.1%

- FY2023: 1.0%

- FY2024: -4.7%

- FY2025: -3.7%

- FY2026: -2.8%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 22% since Oct 2023 · "Other interest was favourable year-on-year driven by higher levels of capitalised interest." (NG filing, Jun 2026) · sales -3.8%

Story as of 2026-10-16T09:59:57.641Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -3.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: GBP 15B 

- FY2018: GBP 15B 

- FY2019: GBP 15B 

- FY2020: GBP 13B 

- FY2021: GBP 14B 

- FY2022: GBP 18B 

- FY2023: GBP 22B 

- FY2024: GBP 20B 

- FY2025: GBP 18B 

- FY2026: GBP 18B 

### Gross margin · FY2026

gross margin 32.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 77.9% 

- FY2026: 32.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are GBP 17.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2026: revenue 17687000000; grossProfit 5776000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NG.LSE: National Grid plc engages in the transmission and distribution of electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, New England, New York, National Grid Ventures, and Other segments. The UK Electricity Transmission segment provides electricity transmission networks in England and Wales. The UK Electricity Distribution segment offers electricity distribution services in east and west Midlands, Southwest of England, and South Wales. The New England segment provides electricity and gas supply and distribution, and high-voltage electricity transmission services in New England. The New York segment offers electricity and gas distribution, and electricity transmission services in New York. The National Grid Ventures segment provides transmission services through electricity interconnectors and LNG importation at the Isle of Grain. The Other segment engages in the leasing and sale of commercial property, as well as insurance activities in the United Kingdom. The company was founded in 1990 and is headquartered in London, the United Kingdom.

### Why customers stay

Margins ranged from 32.7% to 100% during 2024–26; it earns 5.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2024: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2026: grossProfit / revenue = 32.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); 10-year return on capital observations [[2017,0.08049181618663907],[2018,0.0944309272776426],[2019,0.05857170154207491],[2020,0.03987189330217011],[2021,0.042789795429259175],[2022,0.05035982062144389],[2023,0.061568899610786675],[2024,0.05169616864097538],[2025,0.054866398066075746],[2026,0.060684919953053425]]; median 0.05671904980407533. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2017: growth capex 2171000000; upkeep 1348000000; owner earnings 7795000000. Growth capex / owner earnings = 0.27851186658114174.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2018: growth capex 606458234.7222633; upkeep 3304541765.2777367; owner earnings 1775458234.7222633. Growth capex / owner earnings = 0.3415784290848904.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2022: growth capex 3714000000; upkeep 1830000000; owner earnings 2241400000. Growth capex / owner earnings = 1.6570000892299455.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2023: growth capex 4908000000; upkeep 1984000000; owner earnings 7654200000. Growth capex / owner earnings = 0.6412165869718586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); Dividend observations: [[2017,1463000000],[2018,4487000000],[2019,1160000000],[2020,892000000],[2021,1413000000],[2022,922000000],[2023,1607000000],[2024,1718000000],[2025,1529000000],[2026,1623000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); FY2026: cash repurchases 1000000 GBP.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NG.LSE SharesStats.PercentInsiders = 0.13799999999999998 percentage points; cache date 2026-10-16.

### What could break it

Risks are generally higher in a 4°C scenario than a 2°C scenario.

- Source: https://filings.xbrl.org/8R95QZMKZLJX5Q2XR704/2026-03-31/ESEF/GB/0/8R95QZMKZLJX5Q2XR704-2026-03-31/reports/8R95QZMKZLJX5Q2XR704-2026-03-31-T01.html (filed 2026-06-11); Outputs Most climate hazards are expected to become more frequent, with high temperatures and coastal and river flooding posing the greatest risk across our operations. Risks are generally higher in a 4°C scenario than a 2°C scenario. Wildfire risk remains lower in our territories compared with areas such as the western US, but we have strengthened situational awareness and operating procedures.

### What the price says

The price is 3.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:45.546Z); Closing price 1193.5 GBX; reporting-to-trading FX 100; FY2026 annual sales per share 3.5542514168174146; price multiple 3.3579504093401935. FY2026 cash earnings/share -0.9403785226515957. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-11: GBX 996.22 per share

- 2016-12: GBX 1,038.11 per share

- 2017-01: GBX 1,012.04 per share

- 2017-02: GBX 1,066.36 per share

- 2017-03: GBX 1,105.64 per share

- 2017-04: GBX 1,090.91 per share

- 2017-05: GBX 1,089.50 per share

- 2017-06: GBX 951.80 per share

- 2017-07: GBX 936.80 per share

- 2017-08: GBX 974.70 per share

- 2017-09: GBX 924.60 per share

- 2017-10: GBX 906.00 per share

- 2017-11: GBX 885.00 per share

- 2017-12: GBX 875.10 per share

- 2018-01: GBX 804.70 per share

- 2018-02: GBX 740.20 per share

- 2018-03: GBX 802.20 per share

- 2018-04: GBX 842.80 per share

- 2018-05: GBX 833.30 per share

- 2018-06: GBX 838.40 per share

- 2018-07: GBX 813.30 per share

- 2018-08: GBX 810.00 per share

- 2018-09: GBX 791.40 per share

- 2018-10: GBX 829.20 per share

- 2018-11: GBX 832.90 per share

- 2018-12: GBX 764.20 per share

- 2019-01: GBX 825.20 per share

- 2019-02: GBX 847.90 per share

- 2019-03: GBX 850.80 per share

- 2019-04: GBX 836.10 per share

- 2019-05: GBX 792.80 per share

- 2019-06: GBX 835.80 per share

- 2019-07: GBX 844.30 per share

- 2019-08: GBX 858.50 per share

- 2019-09: GBX 881.90 per share

- 2019-10: GBX 901.30 per share

- 2019-11: GBX 889.70 per share

- 2019-12: GBX 944.30 per share

- 2020-01: GBX 1,005.80 per share

- 2020-02: GBX 982.80 per share

- 2020-03: GBX 946.60 per share

- 2020-04: GBX 933.80 per share

- 2020-05: GBX 926.00 per share

- 2020-06: GBX 989.20 per share

- 2020-07: GBX 900.40 per share

- 2020-08: GBX 843.20 per share

- 2020-09: GBX 889.80 per share

- 2020-10: GBX 919.00 per share

- 2020-11: GBX 848.40 per share

- 2020-12: GBX 865.00 per share

- 2021-01: GBX 850.00 per share

- 2021-02: GBX 806.40 per share

- 2021-03: GBX 864.00 per share

- 2021-04: GBX 910.60 per share

- 2021-05: GBX 939.20 per share

- 2021-06: GBX 920.80 per share

- 2021-07: GBX 924.10 per share

- 2021-08: GBX 941.30 per share

- 2021-09: GBX 884.60 per share

- 2021-10: GBX 935.40 per share

- 2021-11: GBX 1,006.60 per share

- 2021-12: GBX 1,059.80 per share

- 2022-01: GBX 1,079.60 per share

- 2022-02: GBX 1,130.80 per share

- 2022-03: GBX 1,172.40 per share

- 2022-04: GBX 1,194.00 per share

- 2022-05: GBX 1,171.00 per share

- 2022-06: GBX 1,052.00 per share

- 2022-07: GBX 1,131.50 per share

- 2022-08: GBX 1,078.00 per share

- 2022-09: GBX 931.00 per share

- 2022-10: GBX 948.40 per share

- 2022-11: GBX 1,014.50 per share

- 2022-12: GBX 997.40 per share

- 2023-01: GBX 1,025.00 per share

- 2023-02: GBX 1,048.00 per share

- 2023-03: GBX 1,096.50 per share

- 2023-04: GBX 1,144.50 per share

- 2023-05: GBX 1,106.00 per share

- 2023-06: GBX 1,040.50 per share

- 2023-07: GBX 1,031.50 per share

- 2023-08: GBX 990.20 per share

- 2023-09: GBX 980.00 per share

- 2023-10: GBX 978.60 per share

- 2023-11: GBX 1,027.50 per share

- 2023-12: GBX 1,058.00 per share

- 2024-01: GBX 1,055.00 per share

- 2024-02: GBX 1,037.50 per share

- 2024-03: GBX 1,066.00 per share

- 2024-04: GBX 1,048.00 per share

- 2024-05: GBX 882.40 per share

- 2024-06: GBX 882.60 per share

- 2024-07: GBX 986.00 per share

- 2024-08: GBX 998.60 per share

- 2024-09: GBX 1,030.00 per share

- 2024-10: GBX 976.20 per share

- 2024-11: GBX 992.60 per share

- 2024-12: GBX 950.00 per share

- 2025-01: GBX 979.80 per share

- 2025-02: GBX 975.00 per share

- 2025-03: GBX 1,009.50 per share

- 2025-04: GBX 1,083.00 per share

- 2025-05: GBX 1,046.50 per share

- 2025-06: GBX 1,061.50 per share

- 2025-07: GBX 1,060.00 per share

- 2025-08: GBX 1,041.00 per share

- 2025-09: GBX 1,067.50 per share

- 2025-10: GBX 1,140.00 per share

- 2025-11: GBX 1,146.50 per share

- 2025-12: GBX 1,141.50 per share

- 2026-01: GBX 1,234.50 per share

- 2026-02: GBX 1,391.00 per share

- 2026-03: GBX 1,269.50 per share

- 2026-04: GBX 1,312.20 per share

- 2026-05: GBX 1,195.50 per share

- 2026-06: GBX 1,248.00 per share

- 2026-07: GBX 1,190.00 per share

- 2026-08: GBX 1,170.00 per share

- 2026-09: GBX 1,145.50 per share

- 2026-10: GBX 1,178.50 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 768.34 per share, central GBX 882.04 per share, high GBX 979.42 per share

- FY2018: low GBX 604.28 per share, central GBX 677.32 per share, high GBX 774.55 per share

- FY2019: low GBX 112.93 per share, central GBX 121.03 per share, high GBX 131.82 per share

- FY2020: low GBX 104.61 per share, central GBX 111.97 per share, high GBX 121.77 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Sarah Ketterer](https://gigainvestors.com/CAU): 590,240 NGG shares; USD 48,913,000 reported position value; 0.53% of portfolio; add; quarter 2026 Q2.