Is NATIONAL GRID PLC (NGG) Halal?

NYSE Utilities United Kingdom $81.4B
✗ NOT HALAL
Confidence: 90/100
NATIONAL GRID PLC (NGG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 53.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. NATIONAL GRID PLC operates in the Utilities sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 53.2%
/ 30%
7.8%
/ 30%
3.4%
/ 30%
2.39%
/ 5%
✗ NOT HALAL
DJIM 53.2%
/ 33%
7.8%
/ 33%
3.4%
/ 33%
2.39%
/ 5%
✗ NOT HALAL
MSCI 44.5%
/ 33%
6.5%
/ 33%
2.9%
/ 33%
2.39%
/ 5%
✗ NOT HALAL
S&P 53.2%
/ 33%
7.8%
/ 33%
3.4%
/ 33%
2.39%
/ 5%
✗ NOT HALAL
FTSE 44.5%
/ 33%
6.5%
/ 33%
2.9%
/ 50%
2.39%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
20.5
Forward: 13.6
EPS
$3.99
Dividend Yield
381.0%
Payout: 78.0%
P/B Ratio
8.2
EV/EBITDA
62.4
EV: $445.4B
Revenue
$18.4B
Growth: -11.3%
Beta
0.6
Low volatility
Current Ratio
1.0

Profitability

Gross Margin 100.0%
Operating Margin 24.1%
Net Margin 16.4%
Return on Equity (ROE) 7.9%
Return on Assets (ROA) 3.2%

Cash Flow & Balance Sheet

Operating Cash Flow$6.8B
Free Cash Flow-$2.5B
Total Debt$47.5B
Debt-to-Equity123.4
Current Ratio1.0
Total Assets$106.7B

Price & Trading

Last Close$82.40
50-Day MA$87.48
200-Day MA$77.18
Avg Volume1.1M
Beta0.6
52-Week Range
$62.13
$94.64

About NATIONAL GRID PLC (NGG)

CEO
Ms. Zoe A. Yujnovich
Employees
31,654
Sector
Utilities
Industry
Utilities - Regulated Electric
Country
United Kingdom
Exchange
NYSE
Market Cap
$81.4B
Currency
USD

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.

Related Halal Stocks in Utilities

Frequently Asked Questions

Is NATIONAL GRID PLC (NGG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NATIONAL GRID PLC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is NATIONAL GRID PLC's debt ratio?

NATIONAL GRID PLC's debt ratio is 53.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 44.5%.

What are NATIONAL GRID PLC's key financial metrics?

NATIONAL GRID PLC has a market capitalization of $81.4B, trailing P/E ratio of 20.5, and revenue of $18.4B. The company maintains a gross margin of 100.0% and a net margin of 16.4%. Return on equity stands at 7.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.