ASX:NAB

Stock Analysis Report

National Australia Bank

Executive Summary

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Asia, the United States, and the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet average 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


Market Performance


7 Day Return

-1.2%

ASX:NAB

-2.7%

AU Banks

-1.8%

AU Market


1 Year Return

-3.8%

ASX:NAB

-4.3%

AU Banks

0.2%

AU Market

NAB matched the Banks industry (-4.3%) over the past year.

NAB underperformed the Market in Australia which returned 0.2% over the past year.


Share holder returns

NABIndustryMarket
7 Day-1.2%-2.7%-1.8%
30 Day-0.6%-3.1%-3.5%
90 Day4.6%-2.1%-0.4%
1 Year3.4%-3.8%2.0%-4.3%5.9%0.2%
3 Year21.9%-0.9%19.5%-0.4%31.5%14.4%
5 Year20.1%-20.9%16.3%-15.5%38.3%7.3%

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 based on future cash flows and its price relative to the stock market?

12.75x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

National Australia Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

National Australia Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

National Australia Bank is good value based on earnings compared to the AU Banks industry average.

National Australia Bank is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

National Australia Bank is poor value based on expected growth next year.


Price Based on Value of Assets

National Australia Bank is overvalued based on assets compared to the AU Banks industry average.


Next Steps

Future Growth

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

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

National Australia Bank's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

National Australia Bank's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

National Australia Bank's revenue growth is positive but not above the Australia market average.

National Australia Bank's earnings growth is expected to exceed the Australia market average.

National Australia Bank's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

National Australia Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

National Australia Bank's year on year earnings growth rate has been positive over the past 5 years.

National Australia Bank's 1-year earnings growth is negative, it can't be compared to the 5-year average.

National Australia Bank's 1-year earnings growth is negative, it can't be compared to the AU Banks industry average.


Return on Equity

National Australia Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

National Australia Bank used its assets more efficiently than the AU Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if National Australia Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

National Australia Bank has an acceptable proportion of non-loan assets held.

National Australia Bank has a sufficient allowance for bad loans.

National Australia Bank's liabilities are made up of primarily low risk sources of funding.

National Australia Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at National Australia Bank are broadly funded by customer deposits.

National Australia Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

6.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

National Australia Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.58%).

National Australia Bank's dividend is above the markets top 25% of dividend payers in Australia (5.88%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of National Australia Bank's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Phil Chronican (63yo)

0.4yrs

Tenure

AU$434,655

Compensation

Mr. Philip Wayne Chronican, also known as Phil, B.Com (Hons), MBA (Dist), GAICD, SF Fin, has been Interim Group Chief Executive Officer at National Australia Bank Ltd. since March 1, 2019. He has been Chai ...


Management Age and Tenure

2.0yrs

Average Tenure

The average tenure for the National Australia Bank management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

61yo

Average Age

The tenure for the National Australia Bank board of directors is about average.


Insider Trading

More shares have been bought than sold by National Australia Bank individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$49,24005 Aug 19
Geraldine McBride
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares1,743
Max PriceAU$28.25
BuyAU$241,55321 May 19
Philip Chronican
EntityIndividual
Role
Chief Executive Officer
Interim Group CEO & Director
Shares10,000
Max PriceAU$24.16
SellAU$24,15021 May 19
Philip Chronican
EntityIndividual
Role
Chief Executive Officer
Interim Group CEO & Director
Shares1,000
Max PriceAU$24.15
SellAU$10,01616 Oct 18
Ann Sherry
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares375
Max PriceAU$26.71

Ownership Breakdown


Management Team

  • Phil Chronican (63yo)

    Interim Group CEO & Director

    • Tenure: 0.4yrs
    • Compensation: AU$434.66k
  • A. Gall

    Chief Customer Officer of Corporate & Institutional Banking

    • Tenure: 5.0yrs
    • Compensation: AU$2.45m
  • Ross Brown

    Head of Investor Relations

    • Tenure: 5.9yrs
  • Sharon Cook

    Chief Legal & Commercial Counsel

    • Tenure: 2.3yrs
    • Compensation: AU$1.42m
  • Patrick Wright (52yo)

    Chief Technology & Operations Officer

    • Tenure: 0.0yrs
    • Compensation: AU$3.67m
  • Anthony Healy

    Chief Customer Officer of Business & Private Banking

    • Tenure: 1.6yrs
    • Compensation: AU$3.34m
  • Angie Mentis

    MD & CEO of Bank of New Zealand

    • Tenure: 1.6yrs
    • Compensation: AU$3.57m
  • Rachel Slade

    Chief Customer Experience Officer

    • Tenure: 0.8yrs
    • Compensation: AU$622.72k
  • Mike Baird

    Chief Customer Officer of Consumer Banking

    • Tenure: 2.3yrs
    • Compensation: AU$2.29m
  • Andrew Dell

    Chief Information Security Officer

    • Tenure: 0.0yrs

Board Members

  • Phil Chronican (63yo)

    Interim Group CEO & Director

    • Tenure: 0.4yrs
    • Compensation: AU$434.66k
  • Peeyush Kumar Gupta (60yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$679.23k
  • Ann Sherry (65yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$231.17k
  • Anthony Yuen (69yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: AU$292.50k
  • Geraldine McBride (58yo)

    Non Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$262.50k
  • Ken Henry (61yo)

    Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: AU$790.00k
  • David Armstrong (61yo)

    Non Executive Director

    • Tenure: 5.0yrs
    • Compensation: AU$325.00k
  • Doug McKay (64yo)

    Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: AU$502.22k
  • Anne Loveridge (58yo)

    Non Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$295.00k
  • Andrej Korinšek

    President of Supervisory Board

    • Tenure: 0.0yrs

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: 1858
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$78.262b
  • Shares outstanding: 2.88b
  • 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
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 06/2079 AUD1000AUAUDMar 2019

Biography

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Asia, the United States, and the United Kingdom. It operates through Consumer Banking an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 10:32
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.