National Grid plc (NG.L) stock analysis

In our weekly check, National Grid plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7.

About National Grid plc

National Grid plc is an Utilities company (Regulated Electric) based in the United Kingdom, listed on LSE as NG.L.

What our checks show for NG.L

Red flags

• Net debt is 6x a year of EBITDA (debt/equity 1.19). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 67.3 points, to 32.7%: costs are rising faster than prices.
• Revenue fell 6.5% a year over the last 3 years.
• Free cash flow is negative (-21.2% of revenue): the business spends more cash than it brings in.
• Recovering from its deepest fall took about 3.9 years.
• The share count grew by 23.1% in 2 years: each shareholder owns a smaller slice.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 32.3% a year over the last 3 years.
• Net profit fell 25.4% a year over the last 3 years.
• The stock has fallen as much as 40% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 5.8%.

Strengths

• The net margin rose by 5.6 points over 5 years, to 18.3%.
• Operating cash flow is 1.92x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 17.4% a year over the next years.
• Analysts expect the net margin to improve by 4.9 points from today's 18.3%.
• The dividend takes 37% of profit: there is a cushion.
• A large company: market value $82.06 billion.

Next earnings report: 2026-11-05

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Questions

What grade does National Grid plc (NG.L) have?

In our weekly check, National Grid plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NG.L stock?

This week's biggest flags for National Grid plc: High debt, Gross margin falling, Weak revenue growth. In total 11 of 25 checks show a warning or a red flag.

What does National Grid plc do?

National Grid plc is an Utilities company (Regulated Electric) based in the United Kingdom, listed on LSE as NG.L.

When does National Grid plc report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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