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NAB

National Australia Bank ASX:NAB Stock Report

Last Price

AU$28.81

Market Cap

AU$90.6b

7D

-1.8%

1Y

5.6%

Updated

02 Oct, 2022

Data

Company Financials +
NAB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends3/6

NAB Stock Overview

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally.

National Australia Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for National Australia Bank
Historical stock prices
Current Share PriceAU$28.81
52 Week HighAU$33.75
52 Week LowAU$25.43
Beta0.94
1 Month Change-5.67%
3 Month Change3.86%
1 Year Change5.65%
3 Year Change3.45%
5 Year Change-8.07%
Change since IPO261.94%

Recent News & Updates

Shareholder Returns

NABAU BanksAU Market
7D-1.8%-2.8%-1.7%
1Y5.6%-10.1%-10.8%

Return vs Industry: NAB exceeded the Australian Banks industry which returned -10.1% over the past year.

Return vs Market: NAB exceeded the Australian Market which returned -10.8% over the past year.

Price Volatility

Is NAB's price volatile compared to industry and market?
NAB volatility
NAB Average Weekly Movement2.8%
Banks Industry Average Movement3.4%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

Stable Share Price: NAB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NAB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
183432,932Ross McEwanhttps://www.nab.com.au

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. It operates through Business and Private Banking, Personal Banking, Corporate and Institutional Banking, and New Zealand Banking segments. It operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments.

National Australia Bank Fundamentals Summary

How do National Australia Bank's earnings and revenue compare to its market cap?
NAB fundamental statistics
Market CapAU$90.65b
Earnings (TTM)AU$6.81b
Revenue (TTM)AU$17.62b

13.3x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NAB income statement (TTM)
RevenueAU$17.62b
Cost of RevenueAU$0
Gross ProfitAU$17.62b
Other ExpensesAU$10.81b
EarningsAU$6.81b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 09, 2022

Earnings per share (EPS)2.16
Gross Margin100.00%
Net Profit Margin38.65%
Debt/Equity Ratio394.1%

How did NAB perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

67%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NAB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NAB?

Other financial metrics that can be useful for relative valuation.

NAB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

How does NAB's PE Ratio compare to its peers?

NAB PE Ratio vs Peers
The above table shows the PE ratio for NAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.2x
WBC Westpac Banking
13.6x12.1%AU$72.2b
ANZ Australia and New Zealand Banking Group
10.1x4.0%AU$68.1b
CBA Commonwealth Bank of Australia
15.9x3.1%AU$153.8b
BFL BSP Financial Group
5.2xn/aAU$2.3b
NAB National Australia Bank
13.3x3.8%AU$90.6b

Price-To-Earnings vs Peers: NAB is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (11.2x).


Price to Earnings Ratio vs Industry

How does NAB's PE Ratio compare vs other companies in the Global Banks Industry?

Price-To-Earnings vs Industry: NAB is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the Global Banks industry average (8.8x)


Price to Earnings Ratio vs Fair Ratio

What is NAB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: NAB is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).


Share Price vs Fair Value

What is the Fair Price of NAB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NAB (A$28.81) is trading below our estimate of fair value (A$46.02)

Significantly Below Fair Value: NAB is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is National Australia Bank forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAB's forecast earnings growth (3.8% per year) is above the savings rate (1.8%).

Earnings vs Market: NAB's earnings (3.8% per year) are forecast to grow slower than the Australian market (6.5% per year).

High Growth Earnings: NAB's earnings are forecast to grow, but not significantly.

Revenue vs Market: NAB's revenue (5% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: NAB's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAB's Return on Equity is forecast to be low in 3 years time (12.1%).


Discover growth companies

Past Performance

How has National Australia Bank performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NAB has a high level of non-cash earnings.

Growing Profit Margin: NAB's current net profit margins (38.7%) are higher than last year (33.6%).


Past Earnings Growth Analysis

Earnings Trend: NAB's earnings have declined by 1.6% per year over the past 5 years.

Accelerating Growth: NAB's earnings growth over the past year (32.2%) exceeds its 5-year average (-1.6% per year).

Earnings vs Industry: NAB earnings growth over the past year (32.2%) exceeded the Banks industry -6.9%.


Return on Equity

High ROE: NAB's Return on Equity (11.2%) is considered low.


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Financial Health

How is National Australia Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NAB's Assets to Equity ratio (16x) is moderate.

Allowance for Bad Loans: NAB has a sufficient allowance for bad loans (443%).

Low Risk Liabilities: 72% of NAB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NAB has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: NAB's Loans to Deposits ratio (100%) is appropriate.

Level of Bad Loans: NAB has an appropriate level of bad loans (0.2%).


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Dividend

What is National Australia Bank current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.07%

Current Dividend Yield

Dividend Yield vs Market

National Australia Bank Dividend Yield vs Market
How does National Australia Bank dividend yield compare to the market?
SegmentDividend Yield
Company (National Australia Bank)5.1%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.1%
Industry Average (Banks)5.2%
Analyst forecast in 3 Years (National Australia Bank)5.9%

Notable Dividend: NAB's dividend (5.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: NAB's dividend (5.07%) is low compared to the top 25% of dividend payers in the Australian market (7.16%).


Stability and Growth of Payments

Stable Dividend: NAB's dividend payments have been volatile in the past 10 years.

Growing Dividend: NAB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.3%), NAB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NAB's dividends in 3 years are forecast to be covered by earnings (71.6% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Ross McEwan (65 yo)

2.83yrs

Tenure

AU$5,293,235

Compensation

Mr. Ross Maxwell McEwan, B.B.S., CBE., has been Group Chief Executive Officer, Managing Director & Director at National Australia Bank Ltd. since December 02, 2019. Mr. McEwan served as Group Chief Executi...


CEO Compensation Analysis

Ross McEwan's Compensation vs National Australia Bank Earnings
How has Ross McEwan's remuneration changed compared to National Australia Bank's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022n/an/a

AU$7b

Dec 31 2021n/an/a

AU$7b

Sep 30 2021AU$5mAU$2m

AU$6b

Jun 30 2021n/an/a

AU$6b

Mar 31 2021n/an/a

AU$5b

Dec 31 2020n/an/a

AU$4b

Sep 30 2020AU$3mAU$2m

AU$3b

Compensation vs Market: Ross's total compensation ($USD3.41M) is about average for companies of similar size in the Australian market ($USD3.85M).

Compensation vs Earnings: Ross's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NAB's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: NAB's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

ASX:NAB Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
19 Jul 22BuyAU$66,917,156State Street Global Advisors, Inc.Company2,108,929AU$32.41
03 May 22BuyAU$577,210State Street Global Advisors, Inc.Company17,975AU$32.12
03 May 22SellAU$202,602State Street Global Advisors, Inc.Company6,308AU$32.12
02 May 22BuyAU$135,121State Street Global Advisors, Inc.Company167,727AU$32.63
28 Apr 22BuyAU$0State Street Global Advisors, Inc.Company898,708AU$33.60
28 Apr 22SellAU$1,964,986State Street Global Advisors, Inc.Company1,337,521AU$34.75
30 Mar 22BuyAU$252,384State Street Global Advisors, Inc.Company6,126,860AU$32.38
01 Feb 22BuyAU$243,775,352The Vanguard Group, Inc.Company8,082,737AU$30.16
28 Jan 22SellAU$102,497,364The Vanguard Group, Inc.Company3,379,438AU$30.33
27 Jan 22BuyAU$16,466,365The Vanguard Group, Inc.Company559,890AU$29.41
27 Jan 22SellAU$26,255,010The Vanguard Group, Inc.Company913,221AU$29.14
17 Jan 22BuyAU$233,606,863The Vanguard Group, Inc.Company7,746,547AU$30.16
07 Jan 22SellAU$66,074,476The Vanguard Group, Inc.Company2,207,576AU$29.98
29 Nov 21BuyAU$0The Vanguard Group, Inc.Company252,789AU$28.58
22 Nov 21BuyAU$31,850,423The Vanguard Group, Inc.Company1,056,194AU$30.16
18 Nov 21SellAU$391,846The Vanguard Group, Inc.Company13,236AU$29.73

Ownership Breakdown

What is the ownership structure of NAB?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders913,8570.03%
Private Companies8,430,0200.3%
Institutions829,508,55526.4%
General Public2,307,618,21873.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 23.6% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
5.65%
BlackRock, Inc.
177,651,034A$5.1b0%0.08%
5.16%
State Street Global Advisors, Inc.
162,401,728A$4.7b1.34%0.17%
5.16%
The Vanguard Group, Inc.
162,322,845A$4.7b0%0.07%
1.16%
Colonial First State Investments Limited
36,639,050A$1.1b0%8.7%
1.1%
Norges Bank Investment Management
34,612,793A$997.2m0%0.09%
0.7%
Commonwealth Superannuation Corporation
21,900,294A$630.9m0%7.86%
0.61%
Geode Capital Management, LLC
19,194,847A$553.0m0.1%0.05%
0.45%
Dimensional Fund Advisors LP
14,029,485A$404.2m0.14%0.07%
0.35%
Australian Foundation Investment Company Limited
11,154,646A$321.4m0%4.52%
0.29%
Netwealth Investments Ltd.
9,175,654A$264.4m0%3.61%
0.29%
J.P. Morgan Asset Management, Inc.
8,984,798A$258.9m-1.87%0.03%
0.27%
FMR LLC
8,381,901A$241.5m7.44%0.01%
0.26%
Charles Schwab Investment Management, Inc.
8,188,837A$235.9m0.92%0.04%
0.26%
Franklin Resources, Inc.
8,133,120A$234.3m0.07%0.07%
0.25%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
7,998,540A$230.4m0.54%0.05%
0.2%
BetaShares Capital Limited
6,236,899A$179.7m3.86%1.51%
0.2%
UBS Asset Management
6,138,930A$176.9m-13.02%0.02%
0.19%
Argo Investments Limited
5,934,685A$171.0m0%3.13%
0.16%
abrdn plc
5,057,148A$145.7m0%0.1%
0.16%
Eastspring Investments (Singapore) Limited
4,943,444A$142.4m-0.1%0.46%
0.16%
Milton Corporation Limited
4,880,441A$140.6m0%9.04%
0.15%
New York Life Investment Management LLC
4,814,912A$138.7m0.05%0.62%
0.15%
AMP Capital Investors Limited
4,744,764A$136.7m0%6.67%
0.14%
MAM Pty Limited
4,539,031A$130.8m0%8.56%
0.14%
Schroder Investment Management Limited
4,502,205A$129.7m0.22%0.07%

Company Information

National Australia Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: National Australia Bank Limited
  • Ticker: NAB
  • Exchange: ASX
  • Founded: 1834
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: AU$90.650b
  • Shares outstanding: 3.15b
  • Website: https://www.nab.com.au

Number of Employees


Location

  • National Australia Bank Limited
  • 395 Bourke Street
  • Level 28
  • Melbourne
  • Victoria
  • 3000
  • Australia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NABZ.YOTCPK (Pink Sheets LLC)SPONS ADR EACH CNV INTO 5 NPVUSUSDFeb 1985
NAL0MUN (Boerse Muenchen)SPONS ADR EACH CNV INTO 5 NPVDEEURFeb 1985
NAUB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NALDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NABASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
NABCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
NABPFASX (Australian Securities Exchange)FRN CNV PERP AUD1000AUAUDMar 2019
NABPHASX (Australian Securities Exchange)FRN CNV PERP AUD1000AUAUDDec 2020
NABPICHIA (Chi-X Australia)3.15% PERP NON CUM RED CNV PREF T-12-28AUAUDJul 2022
NABPIASX (Australian Securities Exchange)3.15% PERP NON CUM RED CNV PREF T-12-28AUAUDJul 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.