NATWEST GROUP PLC -SPON ADR (NWG) Stock Fundamental Analysis
NYSE:NWG - New York Stock Exchange, Inc. - US6390572070 - ADR - Currency: USD
Taking everything into account, NWG scores 3 out of 10 in our fundamental rating. NWG was compared to 404 industry peers in the Banks industry. NWG has a bad profitability rating. Also its financial health evaluation is rather negative. NWG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NWG had positive earnings in the past year.
NWG had a positive operating cash flow in the past year.
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's Return On Assets of 0.64% is on the low side compared to the rest of the industry. NWG is outperformed by 63.29% of its industry peers.
The Return On Equity of NWG (11.48%) is better than 82.03% 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
The Profit Margin of NWG (28.99%) is better than 81.52% 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
2. Health
2.1 Basic Checks
NWG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for NWG has been reduced compared to 1 year ago.
Compared to 5 years ago, NWG has less shares outstanding
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.
The Debt to FCF ratio of NWG (85.00) is worse than 82.53% of its industry peers.
A Debt/Equity ratio of 2.83 is on the high side and indicates that NWG has dependencies on debt financing.
The Debt to Equity ratio of NWG (2.83) is worse than 95.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC3.43%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NWG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.17%.
NWG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.77% yearly.
The Revenue has been growing slightly by 0.09% in the past year.
NWG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.01% yearly.
EPS 1Y (TTM)6.17%
EPS 3Y27.74%
EPS 5Y16.77%
EPS Q2Q%3.61%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y11.39%
Revenue growth 5Y1.01%
Sales Q2Q%17.08%
3.2 Future
NWG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.47% yearly.
The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y13.06%
EPS Next 2Y12.75%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue Next Year6.22%
Revenue Next 2Y5.97%
Revenue Next 3Y5.4%
Revenue Next 5Y3.89%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.04, which indicates a very decent valuation of NWG.
Based on the Price/Earnings ratio, NWG is valued cheaper than 89.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of NWG to the average of the S&P500 Index (29.98), we can say NWG is valued rather cheaply.
NWG is valuated reasonably with a Price/Forward Earnings ratio of 8.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWG indicates a rather cheap valuation: NWG is cheaper than 91.14% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. NWG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWG indicates a slightly more expensive valuation: NWG is more expensive than 75.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.69
PEG (5Y)0.54
EPS Next 2Y12.75%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, NWG is a good candidate for dividend investing.
NWG's Dividend Yield is rather good when compared to the industry average which is at 3.25. NWG pays more dividend than 86.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, NWG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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 2Y12.75%
EPS Next 3Y11.47%
NYSE:NWG (3/3/2025, 1:44:13 PM)
12.38
+0.15 (+1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners59.09%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap49.81B
Analysts81.43
Price Target12.01 (-2.99%)
Short Float %0.04%
Short Ratio0.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend0.5
Dividend Growth(5Y)-7.84%
DP39.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.26%
Min Revenue beat(2)1.24%
Max Revenue beat(2)7.28%
Revenue beat(4)3
Avg Revenue beat(4)3.11%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)7.28%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
Revenue beat(12)9
Avg Revenue beat(12)4.3%
Revenue beat(16)12
Avg Revenue beat(16)16.24%
PT rev (1m)0%
PT rev (3m)5.5%
EPS NQ rev (1m)-3.24%
EPS NQ rev (3m)5.35%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)12.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.5%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 8.13 | ||
| P/S | 2.54 | ||
| P/FCF | 30.22 | ||
| P/OCF | 22.3 | ||
| P/B | 1 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.37
EY11.07%
EPS(NY)1.52
Fwd EY12.3%
FCF(TTM)0.41
FCFY3.31%
OCF(TTM)0.56
OCFY4.48%
SpS4.88
BVpS12.33
TBVpS9.95
PEG (NY)0.69
PEG (5Y)0.54
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
WACC3.43%
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)6.17%
EPS 3Y27.74%
EPS 5Y16.77%
EPS Q2Q%3.61%
EPS Next Y13.06%
EPS Next 2Y12.75%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue 1Y (TTM)0.09%
Revenue growth 3Y11.39%
Revenue growth 5Y1.01%
Sales Q2Q%17.08%
Revenue Next Year6.22%
Revenue Next 2Y5.97%
Revenue Next 3Y5.4%
Revenue Next 5Y3.89%
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