NATWEST GROUP PLC -SPON ADR (NWG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NWG - US6390572070 - ADR
16.91 USD
+0.22 (+1.32%)
17 USD
+0.09 (+0.53%)
Overall NWG gets a fundamental rating of 3 out of 10. We evaluated NWG against 387 industry peers in the Banks industry. NWG may be in some trouble as it scores bad on both profitability and health. NWG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NWG had positive earnings in the past year.
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
With a Return On Assets value of 0.67%, NWG is not doing good in the industry: 67.18% of the companies in the same industry are doing better.
With a decent Return On Equity value of 11.70%, NWG is doing good in the industry, outperforming 79.33% of the companies in the same industry.
| 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
NWG has a Profit Margin of 29.80%. This is in the better half of the industry: NWG outperforms 78.81% of its industry peers.
NWG's Profit Margin has improved in the last couple of years.
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
2. Health
2.1 Basic Checks
NWG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NWG has less shares outstanding
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.
With a Debt to Equity ratio value of 2.19, NWG is not doing good in the industry: 89.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.83% over the past year.
Measured over the past years, NWG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.77% on average per year.
Looking at the last year, NWG shows a quite strong growth in Revenue. The Revenue has grown by 11.03% in the last year.
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
NWG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.33% yearly.
The Revenue is expected to grow by 4.15% on average over the next years.
EPS Next Y13.25%
EPS Next 2Y12.51%
EPS Next 3Y12.22%
EPS Next 5Y12.33%
Revenue Next Year11.97%
Revenue Next 2Y9.17%
Revenue Next 3Y7.86%
Revenue Next 5Y4.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.14, which indicates a very decent valuation of NWG.
NWG's Price/Earnings ratio is rather cheap when compared to the industry. NWG is cheaper than 86.30% of the companies in the same industry.
NWG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 8.80, which indicates a very decent valuation of NWG.
Based on the Price/Forward Earnings ratio, NWG is valued a bit cheaper than 72.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NWG to the average of the S&P500 Index (36.22), we can say NWG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 8.8 |
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 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.54
EPS Next 2Y12.51%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
NWG has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
NWG's Dividend Yield is rather good when compared to the industry average which is at 3.15. NWG pays more dividend than 81.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, NWG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 2Y12.51%
EPS Next 3Y12.22%
16.91
+0.22 (+1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners63.17%
Inst Owner Change-100%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap67.72B
Revenue(TTM)17.02B
Net Income(TTM)4.91B
Analysts80.77
Price Target17.49 (3.43%)
Short Float %0.02%
Short Ratio0.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend0.52
Dividend Growth(5Y)-7.34%
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.55%
Min EPS beat(2)13.87%
Max EPS beat(2)15.22%
EPS beat(4)4
Avg EPS beat(4)22.62%
Min EPS beat(4)13.87%
Max EPS beat(4)46.08%
EPS beat(8)8
Avg EPS beat(8)32.21%
EPS beat(12)12
Avg EPS beat(12)27.71%
EPS beat(16)16
Avg EPS beat(16)35.06%
Revenue beat(2)1
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.44%
Revenue beat(12)7
Avg Revenue beat(12)1.1%
Revenue beat(16)11
Avg Revenue beat(16)15.54%
PT rev (1m)0.14%
PT rev (3m)7.04%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)4.14%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 8.8 | ||
| P/S | 3.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.22 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.85
EY10.94%
EPS(NY)1.92
Fwd EY11.37%
FCF(TTM)-2.37
FCFYN/A
OCF(TTM)-2.37
OCFYN/A
SpS5.43
BVpS13.83
TBVpS11.36
PEG (NY)0.69
PEG (5Y)0.54
Graham Number24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 11.7% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.8% | ||
| GM | N/A | ||
| FCFM | 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC4.41%
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)25.83%
EPS 3Y13.37%
EPS 5Y16.77%
EPS Q2Q%36.74%
EPS Next Y13.25%
EPS Next 2Y12.51%
EPS Next 3Y12.22%
EPS Next 5Y12.33%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y11.39%
Revenue growth 5Y1.01%
Sales Q2Q%15.71%
Revenue Next Year11.97%
Revenue Next 2Y9.17%
Revenue Next 3Y7.86%
Revenue Next 5Y4.15%
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 1Y89.21%
FCF growth 3Y-70.85%
FCF growth 5YN/A
OCF growth 1Y89.21%
OCF growth 3Y-67.92%
OCF growth 5YN/A
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 3 / 10 to NWG.
What is the valuation status for NWG stock?
ChartMill assigns a valuation rating of 5 / 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.
What are the PE and PB ratios of NATWEST GROUP PLC -SPON ADR (NWG) stock?
The Price/Earnings (PE) ratio for NATWEST GROUP PLC -SPON ADR (NWG) is 9.14 and the Price/Book (PB) ratio is 1.22.
What is the expected EPS growth for NATWEST GROUP PLC -SPON ADR (NWG) stock?
The Earnings per Share (EPS) of NATWEST GROUP PLC -SPON ADR (NWG) is expected to grow by 13.25% in the next year.