Nationwide Building Society, together with its subsidiaries, provides retail financial services in the United Kingdom.
Undervalued with excellent balance sheet.
Share Price & News
How has Nationwide Building Society's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NBS has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NBS exceeded the UK Mortgage industry which returned -24.3% over the past year.
Return vs Market: NBS exceeded the UK Market which returned -23.6% over the past year.
Price Volatility Vs. Market
How volatile is Nationwide Building Society's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 months ago | Simply Wall StCould Nationwide Building Society (LON:NBS) Have The Makings Of Another Dividend Aristocrat?
8 months ago | Simply Wall StShould You Be Pleased About The CEO Pay At Nationwide Building Society's (LON:NBS)
1 year ago | Simply Wall StShould You Worry About Nationwide Building Society's (LON:NBS) CEO Salary Level?
Is Nationwide Building Society undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NBS (£164) is trading below our estimate of fair value (£1047.44)
Significantly Below Fair Value: NBS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NBS is good value based on its PE Ratio (3.8x) compared to the Mortgage industry average (6.2x).
PE vs Market: NBS is good value based on its PE Ratio (3.8x) compared to the UK market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NBS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NBS is good value based on its PB Ratio (0.1x) compared to the GB Mortgage industry average (0.7x).
How is Nationwide Building Society forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Banks industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nationwide Building Society has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether Nationwide Building Society is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Nationwide Building Society competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Banks industry.
How has Nationwide Building Society performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NBS has high quality earnings.
Growing Profit Margin: NBS's current net profit margins (15.3%) are lower than last year (21.5%).
Past Earnings Growth Analysis
Earnings Trend: NBS's earnings have declined by -9.8% per year over the past 5 years.
Accelerating Growth: NBS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NBS had negative earnings growth (-31.9%) over the past year, making it difficult to compare to the Mortgage industry average (-4.8%).
Return on Equity
High ROE: NBS's Return on Equity (3.6%) is considered low.
How is Nationwide Building Society's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: NBS's level of assets compared to its equity is moderate.
Allowance for Bad Loans: NBS has a low allowance for bad loans.
Low Risk Liabilities: NBS's liabilities are made up of primarily low risk sources of funding.
Loan Level: NBS has an acceptable proportion of non-loan assets held.
Low Risk Deposits: NBS's loans are broadly funded by customer deposits.
Level of Bad Loans: NBS has an appropriate level of bad loans (0.88%)
What is Nationwide Building Society's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NBS's dividend (6.25%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).
High Dividend: NBS's dividend (6.25%) is low compared to the top 25% of dividend payers in the UK market (7.08%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NBS has been paying a dividend for less than 10 years.
Growing Dividend: NBS's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.6%), NBS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Garner (50yo)
Mr. Joe D. Garner has been the Chief Executive at Nationwide Building Society since April 5, 2016. Mr. Garner served as the Chief Executive Officer of Openreach of BT Group plc from February 2014 to March ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD2.91M) is above average for companies of similar size in the UK market ($USD1.85M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
|CEO & Director||4yrs||UK£2.37m||no data|
|CFO & Executive Director||11yrs||UK£1.35m||no data|
|Chief Operating Officer||1.17yrs||no data||no data|
|Divisional Director of Financial Planning||no data||no data||no data|
|Head of Investor Relations||no data||no data||no data|
|Chief Legal Officer & Society Secretary||2.08yrs||no data||no data|
|Chief Marketing Officer||4.08yrs||no data||no data|
|Chief People Officer||1.25yrs||no data||no data|
|Managing Director of Nationwide Group Intermediary Sales||no data||no data||no data|
|Deputy Chief Financial Officer||1.25yrs||no data||no data|
Experienced Management: NBS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|CEO & Director||4yrs||UK£2.37m||no data|
|CFO & Executive Director||11yrs||UK£1.35m||no data|
|Independent Non Executive Director||4.83yrs||UK£137.00k||no data|
|Independent Non Executive Director||1.33yrs||UK£33.00k||no data|
|Independent Non-Executive Director||7.75yrs||UK£105.00k||no data|
|Independent Chairman of the Board||4.75yrs||UK£397.00k||no data|
|Senior Independent Director||0.25yr||UK£129.00k||no data|
|Independent Non-Executive Director||3.25yrs||UK£93.00k||no data|
|Independent Non-Executive Director||2.83yrs||UK£88.00k||no data|
|Independent Non-Executive Director||4.83yrs||UK£101.00k||no data|
Experienced Board: NBS's board of directors are considered experienced (4.4 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Nationwide Building Society's company bio, employee growth, exchange listings and data sources
- Name: Nationwide Building Society
- Ticker: NBS
- Exchange: LSE
- Founded: 1846
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: UK£1.722b
- Shares outstanding: 10.50m
- Website: https://www.nationwide.co.uk
Number of Employees
- Nationwide Building Society
- Nationwide House
- Pipers Way
- SN38 1NW
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NBS||LSE (London Stock Exchange)||Yes||Core Capital Deferred Shares||GB||GBP||Dec 2013|
Nationwide Building Society, together with its subsidiaries, provides retail financial services in the United Kingdom. The company offers current and savings, and individual savings accounts; residential mortgages; overdrafts, personal loans, car loans, and home improvement loans; and credit cards. It also provides loans to registered social landlords, loans made under the private finance initiatives, and commercial real estate loans. In addition, the company offers home, life, income protection, travel, mobile phone, and breakdown insurance; and investment products and services, such as financial planning services. Further, it provides treasury liquidity, derivative, and discretionary services; and mobile and Internet banking services. The company was founded in 1846 and is headquartered in Swindon, the United Kingdom.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/08 00:32|
|End of Day Share Price||2020/04/07 00:00|
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.