NatWest Group plc
NatWest Group plc Fundamental Analysis
NatWest Group plc (NWG) shows moderate financial fundamentals with a PE ratio of 9.20, profit margin of 22.21%, and ROE of 13.84%. The company generates $12.2B in annual revenue with weak year-over-year growth of 1.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NWG's fundamental strength across five key dimensions:
Efficiency Score
WeakNWG struggles to generate sufficient returns from assets.
Valuation Score
ModerateNWG shows balanced valuation metrics.
Growth Score
ModerateNWG shows steady but slowing expansion.
Financial Health Score
WeakNWG carries high financial risk with limited liquidity.
Profitability Score
WeakNWG struggles to sustain strong margins.
Key Financial Metrics
Is NWG Expensive or Cheap?
P/E Ratio
NWG trades at 9.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NWG's PEG of 7.26 indicates potential overvaluation.
Price to Book
The market values NatWest Group plc at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.28 times EBITDA. This signals the market has high growth expectations.
How Well Does NWG Make Money?
Net Profit Margin
For every $100 in sales, NatWest Group plc keeps $22.21 as profit after all expenses.
Operating Margin
Core operations generate 29.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.84 in profit for every $100 of shareholder equity.
ROA
NatWest Group plc generates $0.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NatWest Group plc generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
NatWest Group plc generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
NWG converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How NWG Stacks Against Its Sector Peers
| Metric | NWG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.20 | 18.86 | Better (Cheaper) |
| ROE | 13.84% | 847.00% | Weak |
| Net Margin | 22.21% | 4202.00% | Weak |
| Debt/Equity | 1.16 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 0.82% | -21543.00% (disorted) | Weak |
NWG outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NatWest Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.41%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
79.93%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
163.63%
Industry Style: Value, Dividend, Cyclical
High Growth