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National Australia Bank

Market Cap

AU$91.4b

Last Updated

2021/09/18 08:04 UTC

Data Sources

Company Financials +

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 with proven track record.


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 +/- 2% a week.

Volatility Over Time: NAB's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

NAB

0.6%

AU Banks

-0.01%

AU Market


1 Year Return

61.3%

NAB

59.5%

AU Banks

27.1%

AU Market

Return vs Industry: NAB exceeded the Australian Banks industry which returned 59.5% over the past year.

Return vs Market: NAB exceeded the Australian Market which returned 27% over the past year.


Shareholder returns

NABIndustryMarket
7 Day-2.0%0.6%-0.01%
30 Day1.4%1.3%-0.5%
90 Day3.8%-1.3%0.8%
1 Year67.3%61.3%65.9%59.5%32.4%27.1%
3 Year17.9%0.8%27.4%10.4%35.9%19.3%
5 Year33.2%-0.4%40.3%8.1%65.3%32.7%

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?

17.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NAB (A$27.89) is trading above our estimate of fair value (A$22.47)

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 (17.7x) compared to the Australian Banks industry average (10.4x).

PE vs Market: NAB is good value based on its PE Ratio (17.7x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: NAB is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: NAB is overvalued based on its PB Ratio (1.5x) compared to the AU Banks industry average (1.1x).


Future Growth

How is National Australia Bank forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAB's forecast earnings growth (4.8% per year) is above the savings rate (1.9%).

Earnings vs Market: NAB's earnings (4.8% per year) are forecast to grow slower than the Australian market (11.5% per year).

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

Revenue vs Market: NAB's revenue (4.1% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: NAB's revenue (4.1% 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 (10.7%).


Past Performance

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

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAB has high quality earnings.

Growing Profit Margin: NAB's current net profit margins (33.3%) are higher than last year (29.7%).


Past Earnings Growth Analysis

Earnings Trend: NAB's earnings have declined by 8% per year over the past 5 years.

Accelerating Growth: NAB's earnings growth over the past year (14.9%) exceeds its 5-year average (-8% per year).

Earnings vs Industry: NAB earnings growth over the past year (14.9%) exceeded the Banks industry 10.1%.


Return on Equity

High ROE: NAB's Return on Equity (8.4%) is considered low.


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 (14.2x) is moderate.

Allowance for Bad Loans: NAB has a sufficient allowance for bad loans (344%).

Low Risk Liabilities: 71% 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 (68%).

Low Risk Deposits: NAB's Loans to Deposits ratio (103%) is appropriate.

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


Dividend

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

4.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NAB's dividend (4.66%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: NAB's dividend (4.66%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


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 (56.8%), 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 (70.8% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Ross McEwan (64 yo)

1.75yrs

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 ($USD2.03M) is below average for companies of similar size in the Australian market ($USD3.56M).

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


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 (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NAB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


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$91.361b
  • Shares outstanding: 3.28b
  • Website: https://www.nab.com.au

Number of Employees


Location

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

Listings


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 Analysis2021/09/18 08:04
End of Day Share Price2021/09/17 00:00
Earnings2021/03/31
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.