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Nationwide Building Society

LSE:NBS
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NBS
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Nationwide Building Society, together with its subsidiaries, provides retail financial services in the United Kingdom. The last earnings update was 177 days ago. More info.


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NBS Share Price and Events
7 Day Returns
0%
LSE:NBS
-0.1%
GB Mortgage
1.3%
GB Market
1 Year Returns
0%
LSE:NBS
-3.7%
GB Mortgage
-5%
GB Market
NBS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nationwide Building Society (NBS) 0% 0% 0% 0% 30.2% 30.6%
GB Mortgage -0.1% -1.7% 9% -3.7% 19.7% 8.2%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • NBS outperformed the Mortgage industry which returned -3.7% over the past year.
  • NBS outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
NBS
Industry
5yr Volatility vs Market

Value

 Is Nationwide Building Society undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nationwide Building Society to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nationwide Building Society.

LSE:NBS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £1,595.02 * 6.7%
£107.07
Book Value of Equity per Share Median Book Value from the past 5 years. £1,595.02
Discount Rate (Cost of Equity) See below 14.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:NBS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.899 (1 + (1- 19%) (2672.94%))
13.975
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (2 * 6.65%)
14.53%

Discounted Cash Flow Calculation for LSE:NBS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Nationwide Building Society is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:NBS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.7% – 14.53%) * £1,595.02)
£-124.63
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £-124.63 / (14.53% - 1.23%)
£-937.10
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £1,595.02 + £-937.10
£657.91
LSE:NBS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £657.91
Current discount Discount to share price of £164.00
= -1 x (£164.00 - £657.91) / £657.91
75.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nationwide Building Society is available for.
Intrinsic value
>50%
Share price is £164 vs Future cash flow value of £657.91
Current Discount Checks
For Nationwide Building Society to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nationwide Building Society's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nationwide Building Society's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nationwide Building Society's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nationwide Building Society's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:NBS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £62.95
LSE:NBS Share Price ** LSE (2019-05-17) in GBP £164
United Kingdom of Great Britain and Northern Ireland Mortgage Industry PE Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 7.93x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nationwide Building Society.

LSE:NBS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:NBS Share Price ÷ EPS (both in GBP)

= 164 ÷ 62.95

2.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nationwide Building Society is good value based on earnings compared to the GB Mortgage industry average.
  • Nationwide Building Society is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Nationwide Building Society's expected growth come at a high price?
Raw Data
LSE:NBS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
27.4%per year
Europe Mortgage Industry PEG Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 1x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nationwide Building Society, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nationwide Building Society's assets?
Raw Data
LSE:NBS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £1,202.76
LSE:NBS Share Price * LSE (2019-05-17) in GBP £164
United Kingdom of Great Britain and Northern Ireland Mortgage Industry PB Ratio Median Figure of 7 Publicly-Listed Mortgage Companies 1.1x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:NBS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:NBS Share Price ÷ Book Value per Share (both in GBP)

= 164 ÷ 1,202.76

0.14x

* Primary Listing of Nationwide Building Society.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nationwide Building Society is good value based on assets compared to the GB Mortgage industry average.
X
Value checks
We assess Nationwide Building Society's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Nationwide Building Society has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Nationwide Building Society expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Nationwide Building Society, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nationwide Building Society expected to grow at an attractive rate?
  • Nationwide Building Society's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Nationwide Building Society's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Unable to compare Nationwide Building Society's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
LSE:NBS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:NBS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 27.4%
United Kingdom of Great Britain and Northern Ireland Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 14.1%
United Kingdom of Great Britain and Northern Ireland Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:NBS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:NBS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 3,118 3,585 661
2018-06-30 3,130 2,579 703
2018-04-04 3,142 1,572 745
2018-01-04 3,144 847 736
2017-09-30 3,145 -189 726
2017-06-30 3,178 -567 742
2017-04-04 3,211 -944 757
2017-01-04 3,248 -625 804
2016-09-30 3,284 -305 851
2016-06-30 3,292 -172 918
2016-04-04 3,299 -38 985
2016-01-04 3,231 -1,481 987

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nationwide Building Society's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Nationwide Building Society is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:NBS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Nationwide Building Society Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:NBS Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 62.95
2018-06-30 66.95
2018-04-04 70.95
2018-01-04 70.05
2017-09-30 69.14
2017-06-30 70.62
2017-04-04 137.64
2017-01-04 146.18
2016-09-30 154.73
2016-06-30 166.91
2016-04-04 179.09
2016-01-04 179.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nationwide Building Society will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nationwide Building Society's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nationwide Building Society has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nationwide Building Society performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nationwide Building Society's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nationwide Building Society's year on year earnings growth rate has been positive over the past 5 years.
  • Nationwide Building Society's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Nationwide Building Society's 1-year earnings growth is negative, it can't be compared to the GB Mortgage industry average.
Earnings and Revenue History
Nationwide Building Society's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nationwide Building Society Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:NBS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 3,118.00 661.00 2,041.00
2018-06-30 3,130.00 703.00 2,026.00
2018-04-04 3,142.00 745.00 2,011.00
2018-01-04 3,143.50 735.50 2,014.50
2017-09-30 3,145.00 726.00 2,018.00
2017-06-30 3,178.00 741.50 2,004.00
2017-04-04 3,211.00 757.00 1,990.00
2017-01-04 3,247.50 804.00 1,952.50
2016-09-30 3,284.00 851.00 1,915.00
2016-06-30 3,291.50 918.00 1,875.00
2016-04-04 3,299.00 985.00 1,835.00
2016-01-04 3,231.00 987.00 1,781.50
2015-09-30 3,163.00 989.00 1,728.00
2015-06-30 3,027.50 914.00 1,691.00
2015-04-04 2,892.00 839.00 1,654.00
2015-01-04 2,806.00 816.00 1,615.50
2014-09-30 2,720.00 793.00 1,577.00
2014-06-30 2,504.50 671.00 1,551.00
2014-04-04 2,289.00 549.00 1,525.00
2014-01-04 2,076.00 424.50 1,494.50
2013-09-30 1,863.00 300.00 1,464.00
2013-06-30 1,774.50 239.00 1,430.50
2013-04-04 1,686.00 178.00 1,397.00
2013-01-04 1,674.50 144.50 1,366.50
2012-09-30 1,663.00 111.00 1,336.00
2012-06-30 1,709.50 145.00 1,330.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nationwide Building Society has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nationwide Building Society used its assets less efficiently than the GB Mortgage industry average last year based on Return on Assets.
  • Unable to establish if Nationwide Building Society improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Nationwide Building Society's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nationwide Building Society has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nationwide Building Society's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Nationwide Building Society's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nationwide Building Society Company Filings, last reported 7 months ago.

LSE:NBS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 12,629.00 46,028.00 23,703.00
2018-06-30 12,629.00 46,028.00 23,703.00
2018-04-04 12,403.00 42,428.00 19,451.00
2018-01-04 12,403.00 42,428.00 19,451.00
2017-09-30 12,287.00 48,657.00 21,300.00
2017-06-30 12,287.00 48,657.00 21,300.00
2017-04-04 11,133.00 46,748.00 19,073.00
2017-01-04 11,133.00 46,748.00 19,073.00
2016-09-30 11,275.00 51,530.00 25,353.00
2016-06-30 11,275.00 51,530.00 25,353.00
2016-04-04 10,930.00 41,918.00 14,097.00
2016-01-04 10,930.00 41,918.00 14,097.00
2015-09-30 10,227.00 39,376.00 14,719.00
2015-06-30 10,227.00 39,376.00 14,719.00
2015-04-04 9,741.00 34,703.00 11,279.00
2015-01-04 9,741.00 34,703.00 11,279.00
2014-09-30 9,368.00 35,157.00 13,950.00
2014-06-30 9,368.00 35,157.00 13,950.00
2014-04-04 8,906.00 33,851.00 10,330.00
2014-01-04 8,906.00 33,851.00 10,330.00
2013-09-30 6,747.00 38,693.00 14,527.00
2013-06-30 6,747.00 38,693.00 14,527.00
2013-04-04 6,580.00 42,515.00 15,259.00
2013-01-04 6,580.00 42,515.00 15,259.00
2012-09-30 6,196.00 42,771.00 16,749.00
2012-06-30 6,196.00 42,771.00 16,749.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Nationwide Building Society has an acceptable proportion of non-loan assets held.
  • Nationwide Building Society's liabilities are made up of primarily low risk sources of funding.
  • Loans at Nationwide Building Society are broadly funded by customer deposits.
  • Nationwide Building Society's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Nationwide Building Society has a low allowance for bad loans.
  • Nationwide Building Society has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Nationwide Building Society's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nationwide Building Society has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Nationwide Building Society's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.25%
Current annual income from Nationwide Building Society dividends.
If you bought £2,000 of Nationwide Building Society shares you are expected to receive £125 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nationwide Building Society's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Nationwide Building Society's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:NBS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:NBS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-22 10.250 6.250
2018-06-13 10.250 6.250
2018-05-22 10.250 6.250
2017-11-24 10.250 6.587
2017-06-27 10.250 6.510
2017-05-26 10.250 6.850
2016-11-21 10.250 7.539
2016-06-16 10.250 8.003
2016-05-24 10.250 8.097
2015-11-27 10.250 8.105
2015-07-09 10.250 7.958
2015-06-22 10.250 7.916
2015-05-26 10.250 7.817
2014-12-29 10.250 8.091
2014-11-25 10.250 8.250
2014-08-18 5.500 4.385
2014-05-28 5.500 4.252

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Nationwide Building Society has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Nationwide Building Society only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Nationwide Building Society's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nationwide Building Society's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nationwide Building Society afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nationwide Building Society has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Nationwide Building Society's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Garner
COMPENSATION £2,317,000
AGE 49
TENURE AS CEO 3.1 years
CEO Bio

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 31, 2016. He served as Chief Executive Officer of Openreach of British Telecommunications plc until February 2016. He served as Deputy Chief Executive and Head of UK Retail Bank at HSBC Bank plc until October 2012, which included responsibility for all of HSBC's retail and commercial banking business, including Marks and Spencer Bank, First Direct and The John Lewis Partnership Card. He served as Group General Manager of HSBC Holdings plc since October 1, 2006 and serves as its Group General Manager of Personal Financial Services, UK. He served as General Manager of Personal Financial Services and Direct Businesses of HSBC Bank plc. Mr. Garner served as Head of PFS UK Banking of HSBC Bank plc. He served as General Manager of Customer Propositions of HSBC Bank plc and HSBC Holdings plc since July 2004. He served as Head of HSBC for UK at HSBC Holdings plc until January 01, 2013. Mr. Garner served as Marketing Director for mobile phone retailer The Link, where he was credited with repositioning the business from a discount operator to a leading communications retailer. Mr. Garner joined HSBC in 2004. Mr. Garner has substantial commercial, operational and regulatory experience, having worked for many years at HSBC, Dixons Stores Group and Procter & Gamble. He has been a Director of Nationwide Building Society since April 5, 2016. He served as Director of HSBC Bank plc from December 2010 to October 2012. He is the Chairman of The British Triathlon Foundation Trust. He serves as director at NewTA Limited. He served as the Chairman of The Practitioner Panel at The Financial Conduct Authority from 2011 to 2013. He served as Non-Executive Director of the Financial Ombudsman Service from 2007 to 2010.

CEO Compensation
  • Joe's compensation has been consistent with company performance over the past year.
  • Joe's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Nationwide Building Society management team in years:

2.3
Average Tenure
50
Average Age
  • The tenure for the Nationwide Building Society management team is about average.
Management Team

Joe Garner

TITLE
CEO & Director
COMPENSATION
£2M
AGE
49
TENURE
3.1 yrs

Mark Rennison

TITLE
CFO & Director
COMPENSATION
£2M
AGE
58
TENURE
12.3 yrs

Tony Prestedge

TITLE
Deputy CEO & Director
COMPENSATION
£1M
AGE
48
TENURE
2.3 yrs

Chris Rhodes

TITLE
Chief Products & Propositions Officer and Executive Director
COMPENSATION
£1M
AGE
55
TENURE
2.3 yrs

Patrick Eltridge

TITLE
Chief Operating Officer
TENURE
0.3 yrs

Larry Banda

TITLE
Divisional Director of Financial Planning

Simon Hamilton

TITLE
CTO and Divisional Director of Operational Strategy & Resilience

Sarah Gardiner

TITLE
Head of Investor Relations

Mark Chapman

TITLE
Chief Legal Officer & Society Secretary
TENURE
1.2 yrs

Sara Bennison

TITLE
Chief Marketing Officer
AGE
50
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Nationwide Building Society board of directors in years:

5.4
Average Tenure
56
Average Age
  • The tenure for the Nationwide Building Society board of directors is about average.
Board of Directors

David Roberts

TITLE
Chairman of the Board
COMPENSATION
£389K
AGE
56
TENURE
3.8 yrs

Joe Garner

TITLE
CEO & Director
COMPENSATION
£2M
AGE
49
TENURE
3.1 yrs

Mark Rennison

TITLE
CFO & Director
COMPENSATION
£2M
AGE
58
TENURE
12.3 yrs

Tony Prestedge

TITLE
Deputy CEO & Director
COMPENSATION
£1M
AGE
48
TENURE
11.8 yrs

Chris Rhodes

TITLE
Chief Products & Propositions Officer and Executive Director
COMPENSATION
£1M
AGE
55
TENURE
10.1 yrs

Mitchel Lenson

TITLE
Non-Executive Director
COMPENSATION
£106K
AGE
64
TENURE
7.8 yrs

Lynne Peacock

TITLE
Senior Independent Director
COMPENSATION
£141K
AGE
65
TENURE
2.8 yrs

Tim Tookey

TITLE
Independent Non Executive Director
COMPENSATION
£125K
AGE
56
TENURE
3.9 yrs

Kevin Allen Parry

TITLE
Non Executive Director
COMPENSATION
£121K
AGE
56
TENURE
3 yrs

Rita Clifton

TITLE
Non-Executive Director
COMPENSATION
£96K
AGE
60
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Nationwide Building Society's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nationwide Building Society has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Worry About Nationwide Building Society's (LON:NBS) CEO Salary Level?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Joe Garner's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Nationwide Building Society has a market cap of UK£1.7b, and is paying total annual CEO compensation of UK£2.3m.

Simply Wall St -

Investors Who Bought Nationwide Building Society Shares Five Years Ago Are Now Up 37%

To wit, the Nationwide Building Society share price has climbed 37% in five years, easily topping the market return of 25%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Nationwide Building Society achieved compound earnings per share (EPS) growth of 14% per year.

Simply Wall St -

Should Nationwide Building Society (LON:NBS) Be Part Of Your Dividend Portfolio?

Historically, Nationwide Building Society (LON:NBS) has been paying a dividend to shareholders. … Does Nationwide Building Society tick all the boxes of a great dividend stock? … View our latest analysis for Nationwide Building Society

Simply Wall St -

Is Nationwide Building Society's (LON:NBS) CEO Being Overpaid?

Joe Garner has been the CEO of Nationwide Building Society (LON:NBS) since 2016. … Our data indicates that Nationwide Building Society is worth UK£1.7b, and total annual CEO compensation is UK£2m. … It would therefore appear that Nationwide Building Society pays Joe Garner more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Should Nationwide Building Society's (LON:NBS) Recent Earnings Worry You?

When Nationwide Building Society (LON:NBS) announced its most recent earnings (04 April 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Understanding how Nationwide Building Society performed requires a benchmark rather than trying to assess a standalone number at one point in time. … NBS's trailing twelve-month earnings (from 04 April 2018) of UK£745.00m has

Simply Wall St -

What You Must Know About Nationwide Building Society's (LON:NBS) Return on Equity

Nationwide Building Society (LON:NBS) generated a below-average return on equity of 6.01% in the past 12 months, while its industry returned 21.93%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into NBS's past performance. … View our latest analysis for Nationwide Building Society

Simply Wall St -

Why Nationwide Building Society (LON:NBS) Is An Attractive Stock On Right Now

Nationwide Building Society (LON:NBS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … report on Nationwide Building Society here

Simply Wall St -

What Are The Drivers Of Nationwide Building Society's (LON:NBS) Risks?

Based on this beta value, NBS appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … As a result, the company may be less volatile relative to broad market movements, compared to a company of similar size but higher proportion of fixed assets.

Simply Wall St -

Good Stocks To Protect Your Portfolio During A Bear Market

Below are a few options I am looking at: Nationwide Building Society, Stobart Group and Howden Joinery Group. … With Stobart Group’s market value of UK£835.24M and a PE of 8.39x, sufficiently greater liquidity is offered at a good price relative to the market, which reduces risk of firm price declines and allows you to sell without a large loss due to unattractive spreads. … As the past 5 years have seen annual earnings growth of 15.86% and a ROE of 40.73% in the most previous year, Howden Joinery Group Limited contains many of the valuable traits in a defensive stock.

Simply Wall St -

April Defensive Stock Picks

Below are a few options I am looking at: Nationwide Building Society, Howden Joinery Group and Superdry. … With Nationwide Building Society’s market value of UK£1.58B and a PE ratio of 2.17x, there are active participants in the market for the stock and there could still be room for value in the price, which reduces risk of firm price declines and allows you to sell without a large loss due to unattractive spreads. … Furthermore, at a UK£2.88B market cap and a PE ratio of 15.56x, there are active participants in the market for the stock and there could still be room for value in the price, which reduces risk of firm price declines and allows you to sell without a large loss due to unattractive spreads.

Simply Wall St -

Company Info

Description

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, family deposit, retirement borrowing, and other mortgages; overdrafts, personal loans, car loans, home improvement loans, and project finance loans; and credit cards. It also provides loans to registered social landlords, loans made under the private finance initiatives, and commercial real estate loans; and syndicated lending services, as well as specialist lending services, including buy to let mortgages. In addition, the company offers home, life and critical illness, mortgage life, income protection, travel, mobile phone, breakdown, and car insurance; and investment products and services, such as financial planning services. Further, it provides treasury liquidity, derivative, and discretionary services; and mobile, Internet, and telephone banking services. The company was founded in 1846 and is headquartered in Swindon, the United Kingdom.

Details
Name: Nationwide Building Society
NBS
Exchange: LSE
Founded: 1846
£1,722,000,000
10,500,000
Website: http://www.nationwide.co.uk
Address: Nationwide Building Society
Nationwide House,
Pipers Way,
Swindon,
Wiltshire, SN38 1NW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE NBS Core Capital Deferred Shares London Stock Exchange GB GBP 09. Dec 2013
SWX NBS14 6.875%-FRN PERP GBP100000 'REGS' SIX Swiss Exchange CH GBP 04. Mar 2014
DB N4WL 6.875%-FRN PERP GBP100000 'REGS' Deutsche Boerse AG DE GBP 04. Mar 2014
LSE 13OT 6.875%-FRN PERP GBP100000 'REGS' London Stock Exchange GB GBP 04. Mar 2014
Number of employees
Current staff
Staff numbers
18,148
Nationwide Building Society employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/18 22:15
End of day share price update: 2019/05/17 00:00
Last earnings filing: 2018/11/22
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/04/04


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.