NWG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. Both the profitability and financial health of NWG have multiple concerns. NWG is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NWG was profitable.
NWG had a negative operating cash flow in the past year.
Of the past 5 years NWG 4 years were profitable.
In multiple years NWG reported negative operating cash flow during the last 5 years.

1.2 Ratios

NWG has a Return On Assets of 0.67%. This is in the lower half of the industry: NWG underperforms 68.41% of its industry peers.
The Return On Equity of NWG (11.70%) is better than 79.37% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.67%
ROE	11.7%
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

1.3 Margins

With a decent Profit Margin value of 29.80%, NWG is doing good in the industry, outperforming 78.07% of the companies in the same industry.
In the last couple of years the Profit Margin of NWG has grown nicely.
The Operating Margin and Gross Margin are not available for NWG so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	29.8%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The debt/assets ratio for NWG is higher compared to a year ago.

2.2 Solvency

NWG has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.19, NWG is doing worse than 88.51% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.19
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC4.67%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 25.83% 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 grown by 11.03% in the past year. This is quite good.
The Revenue has been growing slightly by 1.01% on average over the past years.

EPS 1Y (TTM)25.83%

EPS 3Y13.37%

EPS 5Y16.77%

EPS Q2Q%36.74%

Revenue 1Y (TTM)11.03%

Revenue growth 3Y11.39%

Revenue growth 5Y1.01%

Sales Q2Q%15.71%

3.2 Future

Based on estimates for the next years, NWG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.33% on average per year.
The Revenue is expected to grow by 3.59% on average over the next years.

EPS Next Y14.42%

EPS Next 2Y13.18%

EPS Next 3Y12.65%

EPS Next 5Y12.33%

Revenue Next Year12.61%

Revenue Next 2Y9.45%

Revenue Next 3Y8.07%

Revenue Next 5Y3.59%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

NWG is valuated reasonably with a Price/Earnings ratio of 9.45.
87.73% of the companies in the same industry are more expensive than NWG, based on the Price/Earnings ratio.
NWG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
NWG is valuated reasonably with a Price/Forward Earnings ratio of 8.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWG indicates a rather cheap valuation: NWG is cheaper than 82.77% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NWG to the average of the S&P500 Index (25.57), we can say NWG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	9.45
Fwd PE	8.97

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

NWG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NWG's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.66

PEG (5Y)0.56

EPS Next 2Y13.18%

EPS Next 3Y12.65%

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5. Dividend

5.1 Amount

NWG has a Yearly Dividend Yield of 3.83%.
NWG's Dividend Yield is rather good when compared to the industry average which is at 2.67. NWG pays more dividend than 82.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, NWG pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.83%

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

5.3 Sustainability

DPN/A

EPS Next 2Y13.18%

EPS Next 3Y12.65%

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NATWEST GROUP PLC -SPON ADR / NWG FAQ

Can you provide the ChartMill fundamental rating for NATWEST GROUP PLC -SPON ADR?

ChartMill assigns a fundamental rating of 4 / 10 to NWG.

What is the valuation status of NATWEST GROUP PLC -SPON ADR (NWG) stock?

ChartMill assigns a valuation rating of 6 / 10 to NATWEST GROUP PLC -SPON ADR (NWG). This can be considered as Fairly Valued.

Can you provide the profitability details for NATWEST GROUP PLC -SPON ADR?

NATWEST GROUP PLC -SPON ADR (NWG) has a profitability rating of 3 / 10.

How financially healthy is NATWEST GROUP PLC -SPON ADR?

The financial health rating of NATWEST GROUP PLC -SPON ADR (NWG) is 1 / 10.

Can you provide the expected EPS growth for NWG stock?

The Earnings per Share (EPS) of NATWEST GROUP PLC -SPON ADR (NWG) is expected to grow by 14.42% in the next year.