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NWG

NatWest Group LSE:NWG Stock Report

Last Price

UK£2.21

Market Cap

UK£23.1b

7D

0.3%

1Y

8.6%

Updated

27 Jun, 2022

Data

Company Financials +
NWG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends4/6

NWG Stock Overview

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally.

NatWest Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NatWest Group
Historical stock prices
Current Share PriceUK£2.21
52 Week HighUK£2.58
52 Week LowUK£1.83
Beta1.38
1 Month Change-2.55%
3 Month Change-1.60%
1 Year Change8.64%
3 Year Change-0.27%
5 Year Change-13.35%
Change since IPO-67.73%

Recent News & Updates

Shareholder Returns

NWGGB BanksGB Market
7D0.3%3.8%2.3%
1Y8.6%2.5%-8.6%

Return vs Industry: NWG exceeded the UK Banks industry which returned 2.5% over the past year.

Return vs Market: NWG exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is NWG's price volatile compared to industry and market?
NWG volatility
NWG Average Weekly Movement3.9%
Banks Industry Average Movement5.7%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

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

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

About the Company

FoundedEmployeesCEOWebsite
172758,200Alison Rose-Sladehttps://www.natwestgroup.com

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Commercial Banking, Private Banking, RBS International, and NatWest Markets segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services.

NatWest Group Fundamentals Summary

How do NatWest Group's earnings and revenue compare to its market cap?
NWG fundamental statistics
Market CapUK£23.09b
Earnings (TTM)UK£2.91b
Revenue (TTM)UK£12.31b

7.9x

P/E Ratio

0.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWG income statement (TTM)
RevenueUK£12.31b
Cost of RevenueUK£0
Gross ProfitUK£12.31b
Other ExpensesUK£9.40b
EarningsUK£2.91b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)0.28
Gross Margin100.00%
Net Profit Margin23.67%
Debt/Equity Ratio385.6%

How did NWG perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NWG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NWG?

Other financial metrics that can be useful for relative valuation.

NWG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does NWG's PE Ratio compare to its peers?

NWG PE Ratio vs Peers
The above table shows the PE ratio for NWG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.1x
LLOY Lloyds Banking Group
5.8x2.8%UK£29.8b
STAN Standard Chartered
11.4x19.0%UK£17.5b
BARC Barclays
4.3x2.4%UK£26.3b
HSBA HSBC Holdings
11.4x30.3%UK£106.5b
NWG NatWest Group
7.9x10.7%UK£23.1b

Price-To-Earnings vs Peers: NWG is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (8.1x).


Price to Earnings Ratio vs Industry

How does NWG's PE Ratio compare vs other companies in the European Banks Industry?

Price-To-Earnings vs Industry: NWG is expensive based on its Price-To-Earnings Ratio (7.9x) compared to the UK Banks industry average (4.7x)


Price to Earnings Ratio vs Fair Ratio

What is NWG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NWG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: NWG is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


Share Price vs Fair Value

What is the Fair Price of NWG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NWG (£2.21) is trading below our estimate of fair value (£5.39)

Significantly Below Fair Value: NWG is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: NWG is good value based on its PEG Ratio (0.7x)


Discover undervalued companies

Future Growth

How is NatWest Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWG's forecast earnings growth (10.7% per year) is above the savings rate (0.9%).

Earnings vs Market: NWG's earnings (10.7% per year) are forecast to grow slower than the UK market (11% per year).

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

Revenue vs Market: NWG's revenue (3.5% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: NWG's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWG's Return on Equity is forecast to be low in 3 years time (9.2%).


Discover growth companies

Past Performance

How has NatWest Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


45.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NWG has high quality earnings.

Growing Profit Margin: NWG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NWG has become profitable over the past 5 years, growing earnings by 45.4% per year.

Accelerating Growth: NWG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NWG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (88.4%).


Return on Equity

High ROE: NWG's Return on Equity (8.3%) is considered low.


Discover strong past performing companies

Financial Health

How is NatWest Group's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NWG's Assets to Equity ratio (20x) is very high.

Allowance for Bad Loans: NWG has a low allowance for bad loans (65%).

Low Risk Liabilities: 68% of NWG's liabilities are made up of primarily low risk sources of funding.

Loan Level: NWG has an appropriate level of Loans to Assets ratio (43%).

Low Risk Deposits: NWG's Loans to Deposits ratio (67%) is appropriate.

Level of Bad Loans: NWG has an appropriate level of bad loans (1.7%).


Discover healthy companies

Dividend

What is NatWest Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NWG's dividend (6.78%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: NWG's dividend (6.78%) is in the top 25% of dividend payers in the UK market (5.18%)


Stability and Growth of Payments

Stable Dividend: NWG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NWG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41%), NWG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWG's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

Alison Rose-Slade (52 yo)

2.58yrs

Tenure

UK£3,588,000

Compensation

Ms. Alison Marie Rose-Slade, BA (Hons) has been an Executive Director at NatWest Group Plc (formerly known as Royal Bank of Scotland Group Plc) since November 01, 2019 and has been its Chief Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Alison's total compensation ($USD4.41M) is about average for companies of similar size in the UK market ($USD5.16M).

Compensation vs Earnings: Alison's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NWG's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: NWG's board of directors are considered experienced (6.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NatWest Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: NatWest Group plc
  • Ticker: NWG
  • Exchange: LSE
  • Founded: 1727
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: UK£23.094b
  • Shares outstanding: 10.43b
  • Website: https://www.natwestgroup.com

Number of Employees


Location

  • NatWest Group plc
  • Gogarburn
  • 175 Glasgow Road
  • Edinburgh
  • EH12 1HQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.