OTCPK:NDBK.F

Stock Analysis Report

Executive Summary

Nedbank Group Limited, through its subsidiary, Nedbank Limited, provides various wholesale and retail banking services in South Africa and internationally.

Snowflake

Fundamentals

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Nedbank Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:NDBK.F

-1.8%

US Banks

0.2%

US Market


1 Year Return

n/a

OTCPK:NDBK.F

-15.3%

US Banks

-0.7%

US Market

No trading data on NDBK.F.

No trading data on NDBK.F.


Share holder returns

NDBK.FIndustryMarket
7 Day0%-1.8%0.2%
30 Day0%-6.4%-2.7%
90 Dayn/a-4.0%1.6%
1 Yearn/a-12.9%-15.3%1.6%-0.7%
3 Yearn/a41.3%31.7%40.0%30.9%
5 Yearn/a50.8%34.5%53.8%36.8%

Price Volatility Vs. Market

How volatile is Nedbank Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nedbank Group undervalued based on future cash flows and its price relative to the stock market?

42%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nedbank Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nedbank Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Nedbank Group is good value based on earnings compared to the US Banks industry average.

Nedbank Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Nedbank Group is good value based on expected growth next year.


Price Based on Value of Assets

Nedbank Group is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Nedbank Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nedbank Group's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).

Nedbank Group's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Nedbank Group's revenue growth is expected to exceed the United States of America market average.

Nedbank Group's earnings growth is positive but not above the United States of America market average.

Nedbank Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Nedbank Group performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nedbank Group's year on year earnings growth rate has been positive over the past 5 years.

Nedbank Group's 1-year earnings growth is less than its 5-year average (3.7% vs 7.1%)

Nedbank Group's earnings growth has not exceeded the US Banks industry average in the past year (3.7% vs 33.2%).


Return on Equity

Nedbank Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Nedbank Group used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Nedbank Group 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 Nedbank Group'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

Nedbank Group has an acceptable proportion of non-loan assets held.

Nedbank Group has a low allowance for bad loans.

Nedbank Group's liabilities are made up of primarily low risk sources of funding.

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

Loans at Nedbank Group are broadly funded by customer deposits.

Nedbank Group has a high level of bad loans (greater than 2%).


Next Steps

Dividend

What is Nedbank Group's current dividend yield, its reliability and sustainability?

7.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nedbank Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Nedbank Group's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

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

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Nedbank Group's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Mike Thomas Brown (52yo)

9.4yrs

Tenure

SAR36,425,000

Compensation

Mr. Michael William Thomas Brown, also known as Mike, BCom, Dip Acc, CA (SA), AMP, serves as the Chief Executive and Executive Director of Nedbank Corporate. Mr. Brown has been the Chief Executive Officer  ...


CEO Compensation Analysis

Mike's remuneration is lower than average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

49yo

Average Age

The tenure for the Nedbank Group management team is about average.


Board Age and Tenure

4.9yrs

Average Tenure

52.5yo

Average Age

The tenure for the Nedbank Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Brian Kennedy (58yo)

    Managing Executive of Nedbank Corporate and Investment Banking

    • Tenure: 4.6yrs
    • Compensation: SAR29.82m
  • Mike Thomas Brown (52yo)

    Chief Executive & Executive Director

    • Tenure: 9.4yrs
    • Compensation: SAR36.43m
  • Mfundo Nkuhlu (52yo)

    COO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: SAR22.95m
  • Raisibe Morathi (49yo)

    CFO & Executive Director

    • Tenure: 9.9yrs
    • Compensation: SAR21.87m
  • Alfred Visagie

    Executive Head of Investor Relations

    • Tenure: 0.0yrs
  • Fred Swanepoel (55yo)

    Chief Information Officer

    • Tenure: 0.0yrs
  • Ciko Thomas (49yo)

    Managing Executive of Retail and Business Banking

    • Tenure: 9.6yrs
    • Compensation: SAR21.22m
  • Iolanda Ruggiero (48yo)

    Managing Executive of Nedbank Wealth

    • Tenure: 4.3yrs
    • Compensation: SAR14.96m
  • Khensani Nobanda (40yo)

    Group Executive for Group Marketing and Corporate Affairs

    • Tenure: 1.9yrs
  • Anna Isaac (49yo)

    Group Chief Compliance Officer

    • Tenure: 0.6yrs

Board Members

  • Paul Makwana (49yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: SAR1.44m
  • Mike Thomas Brown (52yo)

    Chief Executive & Executive Director

    • Tenure: 9.4yrs
    • Compensation: SAR36.43m
  • Mfundo Nkuhlu (52yo)

    COO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: SAR22.95m
  • Errol Kruger (62yo)

    Independent Non-Executive Director

    • Tenure: 3.0yrs
    • Compensation: SAR1.28m
  • Brian Dames (53yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: SAR782.00k
  • Raisibe Morathi (49yo)

    CFO & Executive Director

    • Tenure: 9.9yrs
    • Compensation: SAR21.87m
  • Joel Netshitenzhe (62yo)

    Independent Non-Executive Director

    • Tenure: 9.0yrs
    • Compensation: SAR791.00k
  • Mantsika Matooane (43yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: SAR826.00k
  • Vassi Naidoo (64yo)

    Independent Non-Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: SAR5.18m
  • Stanley Subramoney (60yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: SAR1.37m

Company Information

Nedbank Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nedbank Group Limited
  • Ticker: NDBK.F
  • Exchange: OTCPK
  • Founded: 1831
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: SAR105.551b
  • Listing Market Cap: SAR6.875b
  • Shares outstanding: 481.00m
  • Website: https://www.nedbank.co.za

Number of Employees


Location

  • Nedbank Group Limited
  • Nedbank 135 Rivonia Campus
  • 135 Rivonia Road
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEDJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
NCODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NDBK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NBKNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1992
NDBK.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 1995

Biography

Nedbank Group Limited, through its subsidiary, Nedbank Limited, provides various wholesale and retail banking services in South Africa and internationally. It offers personal banking solutions, including s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:02
End of Day Share Price2019/07/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.