OTCPK:NAUB.F

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

4.6%

NAUB.F

2.9%

US Banks

0.07%

US Market


1 Year Return

9.5%

NAUB.F

8.6%

US Banks

8.9%

US Market

Return vs Industry: NAUB.F exceeded the US Banks industry which returned 8.6% over the past year.

Return vs Market: NAUB.F exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

NAUB.FIndustryMarket
7 Day4.6%2.9%0.07%
30 Day6.4%3.4%-0.3%
90 Day2.0%2.1%-1.6%
1 Year9.5%9.5%11.8%8.6%11.3%8.9%
3 Year-7.9%-7.9%54.8%44.1%46.3%36.8%
5 Year-35.1%-35.1%70.2%51.6%62.1%44.3%

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

No news available

Valuation

Is National Australia Bank undervalued compared to its fair value and its price relative to the market?

13.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NAUB.F ($19.95) is trading above our estimate of fair value ($16.69)

Significantly Below Fair Value: NAUB.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NAUB.F is poor value based on its PE Ratio (13.5x) compared to the Banks industry average (12.6x).

PE vs Market: NAUB.F is good value based on its PE Ratio (13.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NAUB.F is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: NAUB.F is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is National Australia Bank forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAUB.F's forecast earnings growth (14.2% per year) is above the savings rate (2.7%).

Earnings vs Market: NAUB.F's earnings (14.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: NAUB.F's revenue (4.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NAUB.F's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAUB.F's Return on Equity is forecast to be low in 3 years time (12.2%).


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

Earnings Trend: NAUB.F's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: NAUB.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NAUB.F had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Banks industry average (29.7%).


Return on Equity

High ROE: NAUB.F's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: NAUB.F's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate NAUB.F's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: NAUB.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: NAUB.F's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: NAUB.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: NAUB.F has a sufficient allowance for bad loans.

Low Risk Liabilities: NAUB.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: NAUB.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NAUB.F's loans are broadly funded by customer deposits.

Level of Bad Loans: NAUB.F has an appropriate level of bad loans (0.26%)


Next Steps

Dividend

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

5.72%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NAUB.F's dividend (5.72%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NAUB.F's dividend (5.72%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: NAUB.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: NAUB.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.9%), NAUB.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NAUB.F's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).


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?

2.1yrs

Average management tenure


CEO

Phil Chronican (63yo)

0.6yrs

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

2.1yrs

Average Tenure

Experienced Management: NAUB.F's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: NAUB.F's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$33,46505 Aug 19
Geraldine McBride
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares1,743
Max PriceAU$19.20
BuyAU$166,78421 May 19
Philip Chronican
EntityIndividual
Role
Chief Executive Officer
Interim Group CEO & Director
Shares10,000
Max PriceAU$16.68
SellAU$16,67521 May 19
Philip Chronican
EntityIndividual
Role
Chief Executive Officer
Interim Group CEO & Director
Shares1,000
Max PriceAU$16.67

Ownership Breakdown


Management Team

  • Phil Chronican (63yo)

    Interim Group CEO & Director

    • Tenure: 0.6yrs
    • Compensation: AU$434.66k
  • A. Gall

    Chief Customer Officer of Corporate & Institutional Banking

    • Tenure: 5.2yrs
    • Compensation: AU$2.45m
  • Sharon Cook

    Chief Legal & Commercial Counsel

    • Tenure: 2.5yrs
    • Compensation: AU$1.42m
  • Patrick Wright (52yo)

    Chief Technology & Operations Officer

    • Tenure: 0yrs
    • Compensation: AU$3.67m
  • Anthony Healy

    Chief Customer Officer of Business & Private Banking

    • Tenure: 1.8yrs
    • Compensation: AU$3.34m
  • Angie Mentis

    MD & CEO of Bank of New Zealand

    • Tenure: 1.8yrs
    • Compensation: AU$3.57m
  • Rachel Slade

    Chief Customer Experience Officer

    • Tenure: 1yrs
    • Compensation: AU$622.72k
  • Gary Lennon

    Chief Financial Officer

    • Tenure: 3.6yrs
    • Compensation: AU$2.33m
  • Mike Baird

    Chief Customer Officer of Consumer Banking

    • Tenure: 2.5yrs
    • Compensation: AU$2.29m
  • Andrew Dell

    Chief Information Security Officer

    • Tenure: 0yrs

Board Members

  • Phil Chronican (63yo)

    Interim Group CEO & Director

    • Tenure: 0.6yrs
    • Compensation: AU$434.66k
  • Peeyush Kumar Gupta (60yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$679.23k
  • Ann Sherry (65yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$231.17k
  • Anthony Yuen (69yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: AU$292.50k
  • Geraldine McBride (58yo)

    Non Executive Director

    • Tenure: 5.6yrs
    • Compensation: AU$262.50k
  • Ken Henry (61yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: AU$790.00k
  • David Armstrong (61yo)

    Non Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$325.00k
  • Doug McKay (64yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$502.22k
  • Anne Loveridge (58yo)

    Non Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$295.00k
  • Andrej Korinšek

    President of Supervisory Board

    • Tenure: 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: NAUB.F
  • Exchange: OTCPK
  • Founded: 1858
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$83.409b
  • Listing Market Cap: AU$57.263b
  • 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
NABCHIA (Chi-X Australia)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 Analysis2019/10/22 23:49
End of Day Share Price2019/10/22 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.