NATWEST GROUP PLC -SPON ADR (NWG) Stock Fundamental Analysis
USA - NYSE:NWG - US6390572070 - ADR
15.49 USD
+0.04 (+0.26%)
15.49 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NWG. NWG was compared to 390 industry peers in the Banks industry. Both the profitability and financial health of NWG have multiple concerns. 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.
The reported operating cash flow has been mixed in the past 5 years: NWG reported negative operating cash flow in multiple years.
1.2 Ratios
NWG has a Return On Assets of 0.67%. This is in the lower half of the industry: NWG underperforms 65.13% of its industry peers.
The Return On Equity of NWG (11.70%) is better than 79.74% 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
NWG's Profit Margin of 29.80% is fine compared to the rest of the industry. NWG outperforms 80.00% of its industry peers.
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
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
The number of shares outstanding for NWG has been reduced compared to 5 years ago.
NWG has a worse debt/assets ratio than last year.
2.2 Solvency
NWG has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
NWG has a Debt to Equity ratio of 2.19. This is amonst the worse of the industry: NWG underperforms 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC4.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NWG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.83%, which is quite impressive.
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 11.20% yearly.
The Revenue is expected to grow by 3.11% on average over the next years.
EPS Next Y9%
EPS Next 2Y10.87%
EPS Next 3Y11.2%
EPS Next 5YN/A
Revenue Next Year11.1%
Revenue Next 2Y8.79%
Revenue Next 3Y7.64%
Revenue Next 5Y3.11%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.42, which indicates a very decent valuation of NWG.
Compared to the rest of the industry, the Price/Earnings ratio of NWG indicates a rather cheap valuation: NWG is cheaper than 88.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. NWG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.31, which indicates a very decent valuation of NWG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWG indicates a somewhat cheap valuation: NWG is cheaper than 76.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, NWG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 8.31 |
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.
PEG (NY)0.94
PEG (5Y)0.5
EPS Next 2Y10.87%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.29%, NWG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.49, NWG pays a better dividend. On top of this NWG pays more dividend than 81.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, NWG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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 2Y10.87%
EPS Next 3Y11.2%
15.49
+0.04 (+0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners63.17%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap62.17B
Revenue(TTM)17.02B
Net Income(TTM)4.91B
Analysts80.77
Price Target17.46 (12.72%)
Short Float %0.04%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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)-0.98%
PT rev (3m)7.3%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0.46%
EPS NY rev (3m)5.69%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 8.31 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.12 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.84
EY11.88%
EPS(NY)1.86
Fwd EY12.03%
FCF(TTM)-2.36
FCFYN/A
OCF(TTM)-2.36
OCFYN/A
SpS5.42
BVpS13.81
TBVpS11.34
PEG (NY)0.94
PEG (5Y)0.5
Graham Number23.91
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
WACC4.15%
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 Y9%
EPS Next 2Y10.87%
EPS Next 3Y11.2%
EPS Next 5YN/A
Revenue 1Y (TTM)11.03%
Revenue growth 3Y11.39%
Revenue growth 5Y1.01%
Sales Q2Q%15.71%
Revenue Next Year11.1%
Revenue Next 2Y8.79%
Revenue Next 3Y7.64%
Revenue Next 5Y3.11%
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 4 / 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 8.42 and the Price/Book (PB) ratio is 1.12.
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 9% in the next year.