Skip to Content
Morningstar
Get 14 Days Free

National Grid PLC ADR NGG

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

National Grid to Buy PPL's U.K. Assets, Plans To Sell U.K. Gas Transmission, Rationale Is Sound

Tancrede Fulop, CFA Equity Analyst

Analyst Note

| Tancrede Fulop, CFA |

We maintain our fair value estimate of GBX 800 and no moat, stable ratings after National Grid announced it will buy PPL's U.K. electricity distribution assets, WPD, for an enterprise value of GBP 14.2 billion. National Grid will fund the acquisition by selling its Rhode Island networks to PPL and by putting its majority stake in U.K. gas transmission assets up for sale. Shares appear fairly valued.

Read Full Analysis

Company Profile

Business Description

National Grid owns and operates the electric and gas transmission system in England and Wales. In 2019, it divested its U.K. natural gas distribution business. In the Northeastern United States, it serves 7.1 million electricity and gas customers combined in three states. It also owns regulated transmission and electricity generation in the United States, metering services, merchant transmission lines in the U.K., and the Grain (U.K.) liquefied natural gas facility.

Contact
1-3 Strand
London, WC2N 5EH, United Kingdom
T +44 2070043000
Sector Utilities
Industry Utilities - Regulated Electric
Most Recent Earnings Mar 31, 2008
Fiscal Year End Mar 31, 2021
Stock Type —
Employees 23,057

Related

Stock Strategist Industry Reports
Utilities Have Rarely Been This Attractive
We see the best values in high-quality gas utilities.
Travis Miller
Investing Specialists
Morningstar Runs the Numbers
We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended Sept. 22.
Morningstar.com
Stock Strategist
This Undervalued Utility Is Buying Back Its Shares at Good Prices
National Grid has been able to repurchase shares at value-accretive prices, given the weakness in its stock price during the past two months.
Travis Miller
Quarter-End Insights
Utilities: Low Rates Keep the Sector's Lovefest Raging
Only the Fed could break up utilities' M&A party.
Travis Miller
ETF Specialist
Just a Bump in the Road for the Global Infrastructure Sector?
This ETF has been battered by the decline in energy prices and weakness in emerging markets.
Robert Goldsborough
Quarter-End Insights
Utilities: Starting to Look Attractive After a Woeful 2015 Start
Utilities' 4% dividend yields still look attractive even with the chance for rising interest rates.
Travis Miller
Quarter-End Insights
Utilities: Bloody February Brings Valuations Back In Line
We don't see an end to this atypical volatility until interest rates rise back toward historical norms.
Travis Miller
US Videos
Can You Rake In Higher Dividend Yields Abroad?
Policy and valuation factors have contributed to higher dividend yields on overseas investments, but currency exposure and withholding taxes could take a bite out of your total return, says Morningstar's Josh Peters.
Josh Peters, CFA
Quarter-End Insights
Utilities: Repeating a Stellar 2014 Performance Will Be Tough
Utilities' 23% total return through mid-December topped all sectors except for M&A-fueled health care.
Travis Miller
ETF Specialist
Opportunity in the World’s Roads, Railways, and Water Systems
iShares Global Infrastructure provides a broad, inexpensive way to invest in global infrastructure.
Robert Goldsborough
Quarter-End Insights
Utilities: Roller-Coaster Ride Continues, but Fundamentals Are Strong
Stock price volatility offers opportunities for investors committed to holding utilities for the long run.
Travis Miller
US Videos
Peters: Don’t Be Scared by Scotland
The U.K. will remain a good hunting ground for dividend-paying stocks even if Scotland decides to become independent, says Morningstar’s Josh Peters.
Josh Peters, CFA
Quarter-End Insights
Utilities Power Past Fair Value
Some of the most defensive companies in the utilities sector have performed the best this year and could face a sharp drop if interest rates start to creep up.
Travis Miller
Quarter-End Insights
4 Utilities Poised to Power Through for Investors
Interest rate fears have weighed on the sector's absolute performance, but utilities' fundamentals remain strong for the most part.
Travis Miller
US Videos
Dividends Basics: Avoid Dividend Tax Tangles
The differing tax treatments of foreign stock, MLP, and REIT dividends should be on income-investors' radars, says Morningstar DividendInvestor editor Josh Peters.
Josh Peters, CFA
Quarter-End Insights
Our Outlook for Utilities Stocks
Finally, utilities with good growth and attractive yields are on sale.
Travis Miller
Credit Insights
Corporate Bonds Take It on the Chin
Corporates are likely to struggle during the next few months as investors attempt to anticipate when and how quickly the Fed will taper its asset purchases and the subsequent bond market reaction, says Morningstar's Dave Sekera.
David Sekera
Quarter-End Insights
Our Outlook for Utilities Stocks
With interest rates rising, will dividend yields keep utilities afloat?
Travis Miller
ETF Specialist
An Income-Generating Asset Class Underrepresented in the ETF World
This ETF holds the infrastructure firms that create the backbone of society--toll roads, ports, railroads, water and sewer systems, and power generation.
Robert Goldsborough
Quarter-End Insights
Our Outlook for Utilities Stocks
Utilities show no signs of slowing down with yields that look as good as ever.
Travis Miller