NATWEST GROUP PLC -SPON ADR(NYSE:NWG) stock Fundamental Analysis

Fundamental Rating

NWG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 398 industry peers in the Banks industry. Both the profitability and financial health of NWG have multiple concerns. NWG is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

NWG had positive earnings in the past year.

In the past year NWG had a positive cash flow from operations.

Of the past 5 years NWG 4 years were profitable.

In multiple years NWG reported negative operating cash flow during the last 5 years.

1.2 Ratios

NWG has a Return On Assets of 0.64%. This is in the lower half of the industry: NWG underperforms 63.32% of its industry peers.

NWG has a better Return On Equity (11.48%) than 79.65% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.64%
ROE	11.48%
ROIC	N/A

ROA(3y)0.58%

ROA(5y)0.4%

ROE(3y)10.82%

ROE(5y)7.56%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

NWG has a better Profit Margin (28.99%) than 80.15% of its industry peers.

NWG's Profit Margin has improved in the last couple of years.

The Operating Margin and Gross Margin are not available for NWG so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	28.99%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y3.49%

PM growth 5Y6.53%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

NWG does not have a ROIC to compare to the WACC, probably because it is not profitable.

NWG has less shares outstanding than it did 1 year ago.

The number of shares outstanding for NWG has been reduced compared to 5 years ago.

NWG has a worse debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of NWG is 85.00, which is on the high side as it means it would take NWG, 85.00 years of fcf income to pay off all of its debts.

NWG's Debt to FCF ratio of 85.00 is on the low side compared to the rest of the industry. NWG is outperformed by 84.67% of its industry peers.

NWG has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.

With a Debt to Equity ratio value of 2.83, NWG is not doing good in the industry: 94.22% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.83
Debt/FCF	85
Altman-Z	N/A

ROIC/WACCN/A

WACC3.57%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

NWG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.86%, which is quite good.

The Earnings Per Share has been growing by 16.77% on average over the past years. This is quite good.

Looking at the last year, NWG shows a small growth in Revenue. The Revenue has grown by 0.09% in the last year.

Measured over the past years, NWG shows a small growth in Revenue. The Revenue has been growing by 1.01% on average per year.

EPS 1Y (TTM)9.86%

EPS 3Y13.37%

EPS 5Y16.77%

EPS Q2Q%12.4%

Revenue 1Y (TTM)0.09%

Revenue growth 3Y11.39%

Revenue growth 5Y1.01%

Sales Q2Q%8.14%

3.2 Future

Based on estimates for the next years, NWG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.20% on average per year.

The Revenue is expected to grow by 2.82% on average over the next years.

EPS Next Y4.62%

EPS Next 2Y8.83%

EPS Next 3Y9.2%

EPS Next 5YN/A

Revenue Next Year7.29%

Revenue Next 2Y6.61%

Revenue Next 3Y5.7%

Revenue Next 5Y2.82%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.87, the valuation of NWG can be described as very cheap.

90.70% of the companies in the same industry are more expensive than NWG, based on the Price/Earnings ratio.

The average S&P500 Price/Earnings ratio is at 28.29. NWG is valued rather cheaply when compared to this.

Based on the Price/Forward Earnings ratio of 7.50, the valuation of NWG can be described as very cheap.

Based on the Price/Forward Earnings ratio, NWG is valued cheaply inside the industry as 87.19% of the companies are valued more expensively.

When comparing the Price/Forward Earnings ratio of NWG to the average of the S&P500 Index (21.08), we can say NWG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.87
Fwd PE	7.5

4.2 Price Multiples

79.65% of the companies in the same industry are cheaper than NWG, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	28.6
EV/EBITDA	N/A

4.3 Compensation for Growth

NWG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.7

PEG (5Y)0.47

EPS Next 2Y8.83%

EPS Next 3Y9.2%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.69%, NWG is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 3.70, NWG pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.52, NWG pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.69%

5.2 History

The dividend of NWG decreases each year by -7.84%.

NWG has been paying a dividend for over 5 years, so it has already some track record.

Dividend Growth(5Y)-7.84%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

NWG pays out 39.83% of its income as dividend. This is a sustainable payout ratio.

DP39.83%

EPS Next 2Y8.83%

EPS Next 3Y9.2%

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NATWEST GROUP PLC -SPON ADR

NYSE:NWG (4/17/2025, 8:04:00 PM)

After market: 12.49 +0.22 (+1.79%)

12.27

+0.08 (+0.66%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)02-14 2025-02-14/bmo

Earnings (Next)05-02 2025-05-02

Inst Owners59.09%

Inst Owner Change0%

Ins Owners0.09%

Ins Owner ChangeN/A

Market Cap49.49B

Analysts80.74

Price Target13.78 (12.31%)

Short Float %0.15%

Short Ratio1.01

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.69%

Yearly Dividend0.52

Dividend Growth(5Y)-7.84%

DP39.83%

Div Incr Years0

Div Non Decr Years0

Ex-Date03-14 2025-03-14 (0.389949)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)30.7%

Min EPS beat(2)15.32%

Max EPS beat(2)46.08%

EPS beat(4)4

Avg EPS beat(4)26.71%

Min EPS beat(4)3.9%

Max EPS beat(4)46.08%

EPS beat(8)8

Avg EPS beat(8)30.41%

EPS beat(12)12

Avg EPS beat(12)35.73%

EPS beat(16)16

Avg EPS beat(16)39.61%

Revenue beat(2)1

Avg Revenue beat(2)0.1%

Min Revenue beat(2)-1.03%

Max Revenue beat(2)1.24%

Revenue beat(4)2

Avg Revenue beat(4)1.03%

Min Revenue beat(4)-1.03%

Max Revenue beat(4)4.22%

Revenue beat(8)4

Avg Revenue beat(8)0.02%

Revenue beat(12)8

Avg Revenue beat(12)3.61%

Revenue beat(16)11

Avg Revenue beat(16)15.72%

PT rev (1m)6.88%

PT rev (3m)16.86%

EPS NQ rev (1m)6.61%

EPS NQ rev (3m)9.63%

EPS NY rev (1m)2.42%

EPS NY rev (3m)11.54%

Revenue NQ rev (1m)1%

Revenue NQ rev (3m)4.19%

Revenue NY rev (1m)0%

Revenue NY rev (3m)1.81%

Valuation

		Industry Rank	Sector Rank
PE	7.87
Fwd PE	7.5
P/S	2.4
P/FCF	28.6
P/OCF	21.11
P/B	0.95
P/tB	1.18
EV/EBITDA	N/A

EPS(TTM)1.56

EY12.71%

EPS(NY)1.64

Fwd EY13.33%

FCF(TTM)0.43

FCFY3.5%

OCF(TTM)0.58

OCFY4.74%

SpS5.11

BVpS12.91

TBVpS10.42

PEG (NY)1.7

PEG (5Y)0.47

Profitability

		Industry Rank	Sector Rank
ROA	0.64%
ROE	11.48%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	28.99%
GM	N/A
FCFM	8.39%

ROA(3y)0.58%

ROA(5y)0.4%

ROE(3y)10.82%

ROE(5y)7.56%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y3.49%

PM growth 5Y6.53%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.02

Health

		Industry Rank	Sector Rank
Debt/Equity	2.83
Debt/FCF	85
Debt/EBITDA	N/A
Cap/Depr	43.86%
Cap/Sales	2.98%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	28.94%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score6

WACC3.57%

ROIC/WACCN/A

Cap/Depr(3y)69.13%

Cap/Depr(5y)69.23%

Cap/Sales(3y)4.21%

Cap/Sales(5y)4.76%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)9.86%

EPS 3Y13.37%

EPS 5Y16.77%

EPS Q2Q%12.4%

EPS Next Y4.62%

EPS Next 2Y8.83%

EPS Next 3Y9.2%

EPS Next 5YN/A

Revenue 1Y (TTM)0.09%

Revenue growth 3Y11.39%

Revenue growth 5Y1.01%

Sales Q2Q%8.14%

Revenue Next Year7.29%

Revenue Next 2Y6.61%

Revenue Next 3Y5.7%

Revenue Next 5Y2.82%

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y107.17%

FCF growth 3Y-70.85%

FCF growth 5YN/A

OCF growth 1Y110.16%

OCF growth 3Y-67.92%

OCF growth 5YN/A

NATWEST GROUP PLC -SPON ADR (NWG) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens