National GridNGGTF +4.54%74 Operating Margin % is 38.36% as of Mar. 2026, which is 65% above its 10-year median of 23.28. GuruFocus rates NGGTF with a GF Score™ of 74/100 and a GF Value™ of $9.67 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 499 Utilities - Regulated companies, National Grid ranks better than 88.18% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. National Grid's Operating Income for the
six
months ended in Mar. 2026 was $5,433 Mil. National Grid's Revenue for the
six
months ended in Mar. 2026 was $14,163 Mil. Therefore, National Grid's Operating Margin % for the quarter that ended in Mar. 2026 was 38.36%.
Good Sign:
National Grid PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for National Grid's Operating Margin % or its related term are showing as below:
NGGTF'
s Operating Margin % Range Over the Past 10 Years
Min: 17.64 Med: 23.28 Max: 35.59
Current: 32.17
NGGTF's Operating Margin % is ranked better than 88.18% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs NGGTF: 32.17
National Grid's 5-Year Average Operating Margin % Growth Rate was 11.20% per year.
National Grid (OTCPK:NGGTF) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
National Grid Operating Margin % Related Terms
National Grid Operating Margin % Historical Data
* Premium members only.
The historical data trend for National Grid's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NGGTF vs NEE, SO, DUK: Operating Margin % Comparison
For the Utilities - Regulated Electric subindustry, National Grid's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
National Grid Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, National Grid's Operating Margin % distribution charts can be found below:
* The bar in red indicates where National Grid's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
National Grid's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
National Grid (NGGTF) has a Operating Margin % of 38.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on National Grid and its competitors. This is 65% above median its historical median of 23.28. Over the past decade, National Grid's Operating Margin % has ranged from 17.64 to 35.59. According to the industry distribution chart, National Grid ranks #59 out of 499 companies in the Utilities - Regulated industry, placing it in the top 11.8%.
Is National Grid's Operating Margin % too high?
National Grid's current Operating Margin % of 38.36% is 65% above median its 10-year median of 23.28. Over the past 10 years, this metric has ranged from a low of 17.64 to a high of 35.59. The Utilities - Regulated industry median Operating Margin % is 14.97. National Grid's value of 38.36% is 156.2% above this industry median. Based on the distribution chart, National Grid ranks #59 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, National Grid has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does National Grid's Operating Margin % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, National Grid ranks #59 out of 499 companies for Operating Margin %. This places National Grid in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. National Grid's value of 38.36% is 156.2% above this benchmark. Historically, National Grid's own Operating Margin % has ranged from 17.64 to 35.59 over the past decade. While the company's 10-year median is 23.28 vs. the industry median of 14.97, National Grid has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. National Grid's current Operating Margin % of 38.36% is 156.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on National Grid and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Grid's current Operating Margin % is 38.36%, which is 65% above median its own 10-year median of 23.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Grid stock overvalued right now?
Based on GuruFocus' analysis, National Grid (NGGTF) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.67, compared to a current price of $16.56 — trading 71.2% above its estimated fair value. The current Operating Margin % is 38.36%, which is 65% above median its 10-year median of 23.28 and 156.2% above the Utilities - Regulated industry median of 14.97. National Grid's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For National Grid (NGGTF), the current Operating Margin % is 38.36% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is National Grid (NGGTF) Overvalued in 2026?
Based on GuruFocus' analysis, National Grid stock appears to be overvalued.
The current stock price of $16.56 is trading 71.2% above its estimated GF Value™ of $9.67.
GuruFocus considers National Grid to be Significantly Overvalued.
Key valuation signals for NGGTF:
Operating Margin %: 38.36% (65% above median its 10-year median of 23.28)
GF Value™: $9.67 vs. price of $16.56 (71.2% above fair value)
Industry Position: 156.2% above the Utilities - Regulated median (#59 of 499)
No single metric tells the full story. See the NGGTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Grid owns and operates the electric transmission system in England and Wales. It sold the bulk of its UK gas transmission business in fiscal 2023 to fund the acquisition of PPL's UK power distribution assets. In the Northeastern United States, it serves electricity and gas customers combined in three states. It also owns regulated transmission electricity networks in the United States, metering services and merchant transmission lines in the UK.
74GF Score
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