ASX:NAB

Stock Analysis Report

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National Australia Bank

Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has National Australia Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NAB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NAB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

NAB

2.3%

AU Banks

-0.3%

AU Market


1 Year Return

-7.7%

NAB

-4.3%

AU Banks

-1.6%

AU Market

Return vs Industry: NAB underperformed the Australian Banks industry which returned -4.3% over the past year.

Return vs Market: NAB underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

NABIndustryMarket
7 Day1.9%2.3%-0.3%
30 Day1.2%4.4%1.5%
90 Day23.2%21.7%9.2%
1 Year-4.7%-7.7%-1.3%-4.3%1.7%-1.6%
3 Year-3.5%-18.4%2.1%-12.5%26.2%10.7%
5 Year23.8%-14.8%25.6%-5.7%68.7%35.5%

Long-Term Price Volatility Vs. Market

How volatile is National Australia Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Australia Bank undervalued compared to its fair value and its price relative to the market?

21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NAB (A$23.65) is trading above our estimate of fair value (A$13.61)

Significantly Below Fair Value: NAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NAB is poor value based on its PE Ratio (21x) compared to the AU Banks industry average (11.6x).

PE vs Market: NAB is good value based on its PE Ratio (21x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: NAB is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NAB is overvalued based on its PB Ratio (1.3x) compared to the AU Banks industry average (0.9x).


Next Steps

Future Growth

How is National Australia Bank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAB's forecast earnings growth (15.8% per year) is above the savings rate (2%).

Earnings vs Market: NAB's earnings (15.8% per year) are forecast to grow slower than the Australian market (18.1% per year).

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

Revenue vs Market: NAB's revenue (6.2% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: NAB's revenue (6.2% 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 (9.2%).


Next Steps

Past Performance

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

-9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAB has high quality earnings.

Growing Profit Margin: NAB's current net profit margins (24.2%) are lower than last year (34.9%).


Past Earnings Growth Analysis

Earnings Trend: NAB's earnings have declined by 9.6% per year over the past 5 years.

Accelerating Growth: NAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NAB had negative earnings growth (-40.4%) over the past year, making it difficult to compare to the Banks industry average (-7.8%).


Return on Equity

High ROE: NAB's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NAB's Assets to Equity ratio (14.1x) is moderate.

Allowance for Bad Loans: NAB has a sufficient allowance for bad loans (322%).

Low Risk Liabilities: 63% 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 (116%) is appropriate.

Level of Bad Loans: NAB has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

2.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NAB's dividend (2.54%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: NAB's dividend (2.54%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).


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

Dividend Coverage: With its reasonable payout ratio (53.3%), 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 (71.3% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Ross McEwan (63 yo)

1.08yrs

Tenure

AU$2,793,181

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

Compensation vs Market: Ross's total compensation ($USD2.16M) is below average for companies of similar size in the Australian market ($USD3.58M).

Compensation vs Earnings: Insufficient data to compare Ross's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ross McEwan
Group CEO1.08yrsAU$2.79m0.0016%
A$ 1.3m
Gary Lennon
Group Chief Financial Officer4.83yrsAU$1.61m0.0037%
A$ 2.9m
Patrick Wright
Group Executive of Technology & Enterprise Operationsno dataAU$2.34m0.0024%
A$ 1.9m
Sharon Cook
Group Executive of Legal & Commercial Services3.75yrsAU$1.09m0.00041%
A$ 325.8k
Susan Ferrier
Group Executive of People & Culture1.25yrsAU$1.01mno data
Shaun Dooley
Chief Risk Officer2.25yrsAU$1.23m0.0019%
A$ 1.5m
Andrew Irvine
Chief Executive of Business Private Banking Division0.33yrAU$536.80kno data
Angela Mentis
MD & CEO of Bank of New Zealand3yrsAU$2.30m0.0047%
A$ 3.7m
Lesile Matheson
Chief Operating Officerno datano datano data
Sally Mihell
Head of Investor Relationsno datano datano data
Mark Alexander
General Manager of Corporate Communicationsno datano datano data
Shinya Fukumoto
Head of Capital Markets - Japan and Director16.58yrsno datano data

2.6yrs

Average Tenure

60yo

Average Age

Experienced Management: NAB's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ross McEwan
Group CEO1.08yrsAU$2.79m0.0016%
A$ 1.3m
Philip Chronican
Independent Chairman of the Board1.17yrsAU$841.17k0.0013%
A$ 1.0m
Peeyush Kumar Gupta
Independent Non-Executive Director6.17yrsAU$527.60k0.00029%
A$ 230.4k
Ann Sherry
Independent Non-Executive Director3.17yrsAU$274.50k0.00039%
A$ 309.9k
Kathryn Fagg
Independent Non-Executive Director1.08yrsAU$193.29k0.00026%
A$ 206.6k
Simon McKeon
Independent Non Executive Director0.92yrAU$163.67k0.00037%
A$ 294.0k
David Armstrong
Independent Non Executive Director6.42yrsAU$325.50k0.00039%
A$ 309.9k
Douglas McKay
Independent Non-Executive Director4.92yrsAU$513.66k0.00036%
A$ 286.0k
Anne Loveridge
Independent Non-Executive Director5.08yrsAU$272.00k0.00037%
A$ 294.0k

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: NAB's board of directors are considered experienced (3.2 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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12%.


Top Shareholders

Company Information

National Australia Bank Limited's company bio, 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
  • Market Cap: AU$79.458b
  • Shares outstanding: 3.29b
  • Website: https://www.nab.com.au

Number of Employees


Location

  • National Australia Bank Limited
  • 800 Bourke Street
  • Level 1
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NABZ.YOTCPK (Pink Sheets LLC)SPONS ADR EACH CNV INTO 5 NPVUSUSDFeb 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
NABPBASX (Australian Securities Exchange)PERP NON CUM CNV PRF SHS (NAB CPS II)AUAUDDec 2013
NABPDASX (Australian Securities Exchange)FRN CNV PERP AUD1000 'REGS'AUAUDJun 2017
NABPFASX (Australian Securities Exchange)FRN CNV LT2 PERP AUD1000AUAUDMar 2019
NABPHASX (Australian Securities Exchange)FRN CNV PERP AUD5000AUAUDDec 2020

Biography

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,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 07:05
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.