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NATWEST GROUP PLC -SPON ADR (NWG) Stock Fundamental Analysis

NYSE:NWG - New York Stock Exchange, Inc. - US6390572070 - ADR - Currency: USD

13.445  -0.24 (-1.79%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to NWG. NWG was compared to 395 industry peers in the Banks industry. NWG has a bad profitability rating. Also its financial health evaluation is rather negative. NWG has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

NWG had positive earnings in the past year.
NWG had a positive operating cash flow in the past year.
NWG had positive earnings in 4 of the past 5 years.
In multiple years NWG reported negative operating cash flow during the last 5 years.
NWG Yearly Net Income VS EBIT VS OCF VS FCFNWG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B -40B

1.2 Ratios

Looking at the Return On Assets, with a value of 0.64%, NWG is doing worse than 65.82% of the companies in the same industry.
The Return On Equity of NWG (11.48%) is better than 80.25% of its industry peers.
Industry RankSector Rank
ROA 0.64%
ROE 11.48%
ROIC N/A
ROA(3y)0.58%
ROA(5y)0.4%
ROE(3y)10.82%
ROE(5y)7.56%
ROIC(3y)N/A
ROIC(5y)N/A
NWG Yearly ROA, ROE, ROICNWG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

1.3 Margins

The Profit Margin of NWG (28.99%) is better than 78.99% of its industry peers.
In the last couple of years the Profit Margin of NWG has grown nicely.
NWG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 28.99%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3.49%
PM growth 5Y6.53%
GM growth 3YN/A
GM growth 5YN/A
NWG Yearly Profit, Operating, Gross MarginsNWG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

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1

2. Health

2.1 Basic Checks

NWG does not have a ROIC to compare to the WACC, probably because it is not profitable.
NWG has less shares outstanding than it did 1 year ago.
NWG has less shares outstanding than it did 5 years ago.
NWG has a worse debt/assets ratio than last year.
NWG Yearly Shares OutstandingNWG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
NWG Yearly Total Debt VS Total AssetsNWG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B

2.2 Solvency

NWG has a debt to FCF ratio of 85.00. This is a negative value and a sign of low solvency as NWG would need 85.00 years to pay back of all of its debts.
NWG has a worse Debt to FCF ratio (85.00) than 87.34% of its industry peers.
NWG has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.83, NWG is doing worse than 93.92% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.83
Debt/FCF 85
Altman-Z N/A
ROIC/WACCN/A
WACC3.82%
NWG Yearly LT Debt VS Equity VS FCFNWG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B -40B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
NWG Yearly Current Assets VS Current LiabilitesNWG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.58% over the past year.
NWG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.77% yearly.
The Revenue has been growing slightly by 6.00% in the past year.
Measured over the past years, NWG shows a small growth in Revenue. The Revenue has been growing by 1.01% on average per year.
EPS 1Y (TTM)27.58%
EPS 3Y13.37%
EPS 5Y16.77%
EPS Q2Q%48.97%
Revenue 1Y (TTM)6%
Revenue growth 3Y11.39%
Revenue growth 5Y1.01%
Sales Q2Q%14.53%

3.2 Future

The Earnings Per Share is expected to grow by 9.20% on average over the next years. This is quite good.
Based on estimates for the next years, NWG will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y4.62%
EPS Next 2Y8.83%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year8.94%
Revenue Next 2Y7.67%
Revenue Next 3Y6.58%
Revenue Next 5Y2.79%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NWG Yearly Revenue VS EstimatesNWG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
NWG Yearly EPS VS EstimatesNWG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.96, the valuation of NWG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NWG indicates a rather cheap valuation: NWG is cheaper than 91.39% of the companies listed in the same industry.
NWG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 7.35, which indicates a rather cheap valuation of NWG.
82.03% of the companies in the same industry are more expensive than NWG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.03. NWG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.96
Fwd PE 7.35
NWG Price Earnings VS Forward Price EarningsNWG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

80.76% of the companies in the same industry are cheaper than NWG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 30.74
EV/EBITDA N/A
NWG Per share dataNWG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.72
PEG (5Y)0.47
EPS Next 2Y8.83%
EPS Next 3Y9.2%

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5

5. Dividend

5.1 Amount

NWG has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 3.61, NWG pays a bit more dividend than its industry peers.
NWG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 4.2%

5.2 History

The dividend of NWG decreases each year by -7.34%.
NWG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-7.34%
Div Incr Years0
Div Non Decr Years0
NWG Yearly Dividends per shareNWG Yearly Dividends per shareYearly Dividends per share 2018 2019 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

NWG pays out 39.83% of its income as dividend. This is a sustainable payout ratio.
DP39.83%
EPS Next 2Y8.83%
EPS Next 3Y9.2%
NWG Yearly Income VS Free CF VS DividendNWG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B -40B
NWG Dividend Payout.NWG Dividend Payout, showing the Payout Ratio.NWG Dividend Payout.PayoutRetained Earnings

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NATWEST GROUP PLC -SPON ADR

NYSE:NWG (6/23/2025, 11:01:56 AM)

13.445

-0.24 (-1.79%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)05-02 2025-05-02/bmo
Earnings (Next)07-25 2025-07-25
Inst Owners59.91%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap54.24B
Analysts81.54
Price Target15.76 (17.22%)
Short Float %0.11%
Short Ratio0.82
Dividend
Industry RankSector Rank
Dividend Yield 4.2%
Yearly Dividend0.53
Dividend Growth(5Y)-7.34%
DP39.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-14 2025-03-14 (0.395203)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.7%
Min EPS beat(2)15.32%
Max EPS beat(2)46.08%
EPS beat(4)4
Avg EPS beat(4)26.71%
Min EPS beat(4)3.9%
Max EPS beat(4)46.08%
EPS beat(8)8
Avg EPS beat(8)30.41%
EPS beat(12)12
Avg EPS beat(12)35.73%
EPS beat(16)16
Avg EPS beat(16)39.61%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)4.22%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)8
Avg Revenue beat(12)3.61%
Revenue beat(16)11
Avg Revenue beat(16)15.72%
PT rev (1m)10.25%
PT rev (3m)22.23%
EPS NQ rev (1m)-3.09%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 7.96
Fwd PE 7.35
P/S 2.58
P/FCF 30.74
P/OCF 22.69
P/B 1.02
P/tB 1.27
EV/EBITDA N/A
EPS(TTM)1.69
EY12.57%
EPS(NY)1.83
Fwd EY13.61%
FCF(TTM)0.44
FCFY3.25%
OCF(TTM)0.59
OCFY4.41%
SpS5.21
BVpS13.16
TBVpS10.62
PEG (NY)1.72
PEG (5Y)0.47
Profitability
Industry RankSector Rank
ROA 0.64%
ROE 11.48%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 28.99%
GM N/A
FCFM 8.39%
ROA(3y)0.58%
ROA(5y)0.4%
ROE(3y)10.82%
ROE(5y)7.56%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3.49%
PM growth 5Y6.53%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.02
Health
Industry RankSector Rank
Debt/Equity 2.83
Debt/FCF 85
Debt/EBITDA N/A
Cap/Depr 43.86%
Cap/Sales 2.98%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 28.94%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC3.82%
ROIC/WACCN/A
Cap/Depr(3y)69.13%
Cap/Depr(5y)69.23%
Cap/Sales(3y)4.21%
Cap/Sales(5y)4.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.58%
EPS 3Y13.37%
EPS 5Y16.77%
EPS Q2Q%48.97%
EPS Next Y4.62%
EPS Next 2Y8.83%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue 1Y (TTM)6%
Revenue growth 3Y11.39%
Revenue growth 5Y1.01%
Sales Q2Q%14.53%
Revenue Next Year8.94%
Revenue Next 2Y7.67%
Revenue Next 3Y6.58%
Revenue Next 5Y2.79%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y107.17%
FCF growth 3Y-70.85%
FCF growth 5YN/A
OCF growth 1Y110.16%
OCF growth 3Y-67.92%
OCF growth 5YN/A