Latest news with #NationalGridplc
Yahoo
19-05-2025
- Business
- Yahoo
National Grid plc (NGG) Announces its FY 2025 Results
National Grid plc (NYSE:NGG) recently announced its results for the full-year 2025. Let's see how the company performed during the year. National Grid plc (NYSE:NGG) is the UK's largest electricity distribution network, serving nearly 8 million customers in the country. The company also operates in the US, delivering electricity, natural gas, and clean energy to more than 20 million people throughout New York and Massachusetts. National Grid plc (NYSE:NGG) recently posted its results for FY 2025, reporting an underlying EPS of 73.3p, up 2% from the previous year and ahead of guidance, with the underlying operating profit increase more than offsetting the increased number of shares after the Rights Issue. Moreover, the company's record £9.8 billion of capital investment helped to drive regulated asset growth of 10.5%. However, revenue decreased by 7% YoY to £18.38 billion. NGG's cash flow generated from continuing operations during the year came in at £7 billion, £0.3 billion lower than last year, mainly due to adverse timing movements. National Grid plc (NYSE:NGG) also declared a total dividend of 46.72p for its shareholders, an increase of 3.21% on last year's rebased dividend. As of the end of FY 2025, the company had £18 billion of distributable reserves, which is sufficient to cover more than five years of forecast dividends. National Grid plc (NYSE:NGG) has earmarked tens of billions of pounds in capital expenditure over the coming years to upgrade the UK's grid system, and recently raised £7bn via a share placing from investors to fund its growth and strengthen its balance sheet. John Pettigrew, CEO of National Grid plc (NYSE:NGG), stated: "We've made significant progress in the first year of our five-year financial framework, with record capital investment of almost £10 billion, 20% higher than 2024, helping to drive regulated asset growth of around 10% this year. Strong performance across all areas of the business underpins our plans to successfully invest c.£60 billion over five years. At a time of international economic uncertainty, National Grid continues to provide stable and predictable growth through our resilient business model. We remain focused on delivering secure, affordable and clean energy to our customers and communities, and providing long-term value and returns for our shareholders." While we acknowledge the potential of NGG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NGG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
19-05-2025
- Business
- Yahoo
National Grid plc (NGG) Announces its FY 2025 Results
National Grid plc (NYSE:NGG) recently announced its results for the full-year 2025. Let's see how the company performed during the year. National Grid plc (NYSE:NGG) is the UK's largest electricity distribution network, serving nearly 8 million customers in the country. The company also operates in the US, delivering electricity, natural gas, and clean energy to more than 20 million people throughout New York and Massachusetts. National Grid plc (NYSE:NGG) recently posted its results for FY 2025, reporting an underlying EPS of 73.3p, up 2% from the previous year and ahead of guidance, with the underlying operating profit increase more than offsetting the increased number of shares after the Rights Issue. Moreover, the company's record £9.8 billion of capital investment helped to drive regulated asset growth of 10.5%. However, revenue decreased by 7% YoY to £18.38 billion. NGG's cash flow generated from continuing operations during the year came in at £7 billion, £0.3 billion lower than last year, mainly due to adverse timing movements. National Grid plc (NYSE:NGG) also declared a total dividend of 46.72p for its shareholders, an increase of 3.21% on last year's rebased dividend. As of the end of FY 2025, the company had £18 billion of distributable reserves, which is sufficient to cover more than five years of forecast dividends. National Grid plc (NYSE:NGG) has earmarked tens of billions of pounds in capital expenditure over the coming years to upgrade the UK's grid system, and recently raised £7bn via a share placing from investors to fund its growth and strengthen its balance sheet. John Pettigrew, CEO of National Grid plc (NYSE:NGG), stated: "We've made significant progress in the first year of our five-year financial framework, with record capital investment of almost £10 billion, 20% higher than 2024, helping to drive regulated asset growth of around 10% this year. Strong performance across all areas of the business underpins our plans to successfully invest c.£60 billion over five years. At a time of international economic uncertainty, National Grid continues to provide stable and predictable growth through our resilient business model. We remain focused on delivering secure, affordable and clean energy to our customers and communities, and providing long-term value and returns for our shareholders." While we acknowledge the potential of NGG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NGG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
02-05-2025
- Business
- Yahoo
Is National Grid plc (NGG) Among The Most Undervalued Renewable Energy Stocks To Buy?
We recently published a list of . In this article, we are going to take a look at where National Grid plc (NYSE:NGG) stands against other most undervalued renewable energy stocks. In 2024, global energy demand increased by 2.2%, quicker than the average over the last decade. Electricity use rose significantly, up 4.3% from last year, primarily due to hotter temperatures, electrification, and the growing digital sector. Renewables were the biggest contributors to the higher energy supply, followed by natural gas and coal. Most of the demand growth came from emerging economies, especially China and India. Natural gas had the strongest growth among fossil fuels, while oil demand softened, plunging below 30% of the energy mix for the first time in 50 years. According to the International Energy Agency, more than 80% of new electricity generation came from renewables and nuclear power in 2024. Solar and wind energy hit new records, and EV sales skyrocketed past 17 million units. Solar capacity grew by 88% last year, helping it overtake hydropower and nuclear as the fourth largest source of installed capacity. While wind power faced hurdles like supply chain issues and permitting delays, it still set a new generation record and even outperformed coal for two straight months. Battery storage also saw impressive growth, rising by 64%, as utilities used it to store extra wind and solar energy. Looking ahead to 2025, Deloitte expects clean energy demand to grow even more, driven by the rise of clean tech manufacturing, data centers, and carbon capture projects, all of which are increasingly relying on 24/7 clean power. The American nonprofit organization, Resources for the Future, noted that clean energy saw a major boost with a record $2 trillion invested in technologies like renewables and energy-efficient infrastructure during 2024. This sped up the global energy transition, especially in solar and wind power. While renewables are now some of the cheapest energy sources, fossil fuels, especially coal and gas, still make up a big part of global energy use. Coal is expected to decline significantly by 2050, while the role of gas depends on how ambitious climate policies become. Regions like the United States, Europe, and especially China have led solar growth, but other countries are starting to catch up. However, high costs and financial risks in developing countries could slow things down. An overhead view of electricity transmission towers, showing the scale and reach of the company's network. For this article, we made a list of all renewable energy stocks listed on American exchanges and picked the 10 stocks with the lowest P/E ratios to compile this list. We have also mentioned the hedge fund sentiment around the holdings, as per Insider Monkey's Q4 2024 database, ranking the list from least to most hedge fund holders. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). PE Ratio as of April 30: 26.85 Number of Hedge Fund Holders: 17 National Grid plc (NYSE:NGG) is a London-based company involved in transmitting and distributing electricity and gas. National Grid Renewables, launched in October 2020, is the US branch of NGG dedicated to speeding up the clean energy transition. It develops, owns, and operates large-scale solar, wind, and battery storage projects across the country. National Grid plc (NYSE:NGG) is one of the most undervalued stocks to invest in. On April 29, UBS analysts downgraded National Grid plc (NYSE:NGG) from Buy to Neutral, and trimmed the price target to £11.50 from £11.60. UBS downgraded National Grid, noting the stock does not have much room to grow since it is already trading close to its 52-week high. Analysts commented that the benefits of recent regulatory updates and a rise in US returns are likely already reflected in the share price. National Grid has proposed Sea Link, a 138 km electricity connection linking Kent to Suffolk, as part of its Great Grid Upgrade. The project includes mostly offshore cables and aims to deliver more renewable energy to meet growing demand. It is in the pre-examination phase as of April 24, 2025, and the company welcomes public input before the Secretary of State makes a final decision. Sea Link is expected to strengthen energy security and support a cleaner power network. According to Insider Monkey's fourth quarter database, 17 hedge funds were bullish on National Grid plc (NYSE:NGG), compared to 19 funds in the prior quarter. Jim Simons' Renaissance Technologies was the largest stakeholder of the company, with 3.1 million shares worth $185.2 million. Overall, NGG ranks 7th among the 10 Most Undervalued Renewable Energy Stocks To Buy Right Now. While we acknowledge the potential of NGG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NGG but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
National Grid (NGG): Among the Best Performing Stocks in Europe
We recently published a list of . In this article, we are going to take a look at where National Grid plc (NYSE:NGG) stands against other best performing European stocks to invest in. The world economy is hanging by a thread, as the macroeconomic environment consists of trade wars, retaliatory tariffs, and political unrest in Ukraine and the Middle East. It adds to economic uncertainty, with market experts offering cautious economic forecasts. According to EY, the euro area will experience a modest economic turnaround in 2025, and growth is expected to increase from 0.7% last year to 1.3% and 1.8% in 2025 and 2026, respectively. It is forecasted to simmer down to 1.4% in 2027. Among all European countries, Malta is projected to experience the highest GDP growth in 2025 at 4%. EY expects soft employment growth across Europe, driven by demographic challenges and subdued labor demand. Unemployment will likely remain at 2024 levels. While nominal wage this year will clock in higher than pre-pandemic levels, wage growth will take a hit. Central and Eastern European countries are forecasted to experience relatively higher inflation in 2025, while the overall rate remains just over 2% in the euro area. Meanwhile, German economic institutes have slashed their growth projections for 2025 to 0.1% from the previous forecast of 0.8% in September 2024. This revised estimate does not incorporate the recent tariffs levied by the US. These tariffs will be a major setback for European economies, possibly toppling them over the edge of recession for the third consecutive year. The new conservative government declared a €500 billion fund to improve infrastructure and defence and stimulate growth. The fiscal package enhances the economic outlook for 2026 and 2027. However, as the United States is feeling the pressure from high valuations and growing political instability, analysts are looking towards Europe as a better bet for stock investors. Analysts point towards Europe offering a more stable outlook, with lower stock prices, clearer policy direction, and even potential interest rate cuts on the horizon. Investors seem to be shifting their focus, partly because the threat of US tariffs on Europe, especially on automobiles, feels less uncertain now that details are clearer. There is also less exposure to tech in Europe, which is seen as a good thing right now. Europe's markets, with just 10% tech exposure in the Europe 600 compared to 30% in the broader market, look more balanced. With solid earnings, rising share buybacks, and cheaper stock valuations, investors are turning to Europe. Experts suggest that European and UK markets now have their best shot in years at outperforming the US. With that in mind, let's take a look at the best-performing stocks in Europe so far in 2025. An overhead view of electricity transmission towers, showing the scale and reach of the company's network. To compile our list of the top performing European stocks this year, used the Finviz screener, applying filters for the region and a market cap of over 10 billion to identify stable European companies. Next, we applied a performance filter and selected 11 European stocks with the highest YTD share price growth as of April 11. We have also mentioned the Q4 2024 hedge fund sentiment around the holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 17 YTD Share Price Performance as of April 11: 14.31% National Grid plc (NYSE:NGG) is a London-based company involved in electricity and gas transmission and distribution in the United States and the United Kingdom. The company develops energy interconnectors, LNG imports, and renewables through its National Grid Ventures arm. It has additional property and insurance operations in the UK as well. National Grid plc (NYSE:NGG) is one of the best performing stocks in Europe so far this year, with the shares up 14.3% year-to-date as of April 11. On March 17, Bernstein analyst Deepa Venkateswaran upgraded National Grid plc (NYSE:NGG) to Outperform with a price target of £11.20, up from £10.40. The analyst noted the stock's undervaluation compared to its US and European counterparts, as well as strong growth potential and returns in both its US and UK operations. National Grid plc (NYSE:NGG) submitted plans for the Sea Link project on March 28, which is a 138 km mostly offshore electricity connection between Kent and Suffolk. As part of The Great Grid Upgrade, it aims to strengthen energy security and provide more clean power as demand increases. After several rounds of public consultation since 2022, National Grid says community feedback helped shape the final plans. The proposal will now go through the Nationally Significant Infrastructure Project (NSIP) process, with more chances for public input during the next phase. Among the hedge funds tracked by Insider Monkey, 17 funds reported owning stakes in National Grid plc (NYSE:NGG) at the end of Q4 2024, compared to 19 funds in the earlier quarter. Jim Simons' was the biggest stakeholder of the company, with 3.1 million shares worth $185.2 million. Overall, NGG ranks 8th among the 11 Top Performing European Stocks So Far In 2025. While we acknowledge the potential of European stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NGG but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
23-03-2025
- Business
- Yahoo
National Grid (LON:NG.) shareholders have earned a 3.7% CAGR over the last three years
As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term National Grid plc (LON:NG.) shareholders, since the share price is down 13% in the last three years, falling well short of the market return of around 18%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the unfortunate three years of share price decline, National Grid actually saw its earnings per share (EPS) improve by 1.8% per year. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past. Given that EPS is up and the share price is down, it seems clear the market is less excited about the business than it was. Having said that, if the EPS gains continue we'd expect the share price to improve, longer term. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). This free interactive report on National Grid's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for National Grid the TSR over the last 3 years was 11%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! National Grid shareholders gained a total return of 6.4% during the year. But that return falls short of the market. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 8% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - National Grid has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about. Of course National Grid may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
