![]() ![]() This in turn will cause asset growth of 6-8% CAGR, and EPS growth at 5-7% CAGR. Until 2026E, the company's plans are to invest upward of £35B, mixed in electricity transmission, US regulated, distribution, and New ventures. The company's case is also based on its expansion and corresponding CapEx. Because the company is partially US-based and partially UK-based, the company is under the scrutiny of several regulators, with a business split looking something like this. Like any utility, the flow of NGG's business is determined by the rate cases and increases allowed by relevant regulators. While the company's US operations are posting somewhat lukewarm results in terms of overall profit, the company's balance sheet remains exceedingly strong with 64% fixed rate debt and an interest coverage ratio of 4.7X, well above Moody's FFO interest cover of 4.5X. A company like NGG is seeing improvements in profit for electricity transmission and distribution, as well as gas. The outlook for National Grid as a business continues to be a positive one, on the back of excellent fundamentals. While things are expected to decline somewhat, I don't expect that this will have a material, further impact on overall valuation, but expect we'll see a bounce-back upwards based on 2023-2024E numbers. I've been investing in utilities for some time, with this being a relatively recent addition, all things considered. It's time for an update on National grid ( NYSE: NYSE: NYSE: NGG), one of the few somewhat UK-based companies I currently invest in. ![]()
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