Now trading at a price of $14.57, NatWest has moved -0.2% so far today.
NatWest returned gains of 52.7% last year, with its stock price reaching a high of $15.52 and a low of $9.16. Over the same period, the stock outperformed the S&P 500 index by 37.4%. More recently, the company's 50-day average price was $14.47. NatWest Group plc, together with its subsidiaries, provides banking and financial products and services in the United Kingdom and internationally. Based in Edinburgh, United Kingdom, the Large-Cap Finance company has 61,651 full time employees. NatWest has offered a 1.7% dividend yield over the last 12 months.
EPS Growth Achieved Primarily Through Stock Repurchases:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $18,163 | $13,447 | $12,702 | $16,574 | $25,382 | $29,323 |
| Interest Income (M) | $3,328 | $2,322 | $1,699 | $2,795 | $9,977 | $13,912 |
| Operating Margins | 15% | -1% | 4% | -1% | 2% | 0% |
| Net Margins | 21% | -3% | 26% | 22% | 18% | 16% |
| Net Income (M) | $3,800 | -$434 | $3,312 | $3,595 | $4,632 | $4,811 |
| Depreciation & Amort. (M) | $1,218 | $913 | $923 | $833 | $934 | $1,058 |
| Diluted Shares (M) | 12,095 | 12,130 | 11,468 | 9,787 | 8,992 | 8,332 |
| Earnings Per Share | $0.26 | -$0.07 | $0.27 | $0.34 | $0.48 | $0.53 |
| EPS Growth | n/a | -126.92307692307692% | 485.71428571428567% | 25.925925925925924% | 41.17647058823528% | 10.416666666666677% |
| Free Cash Flow (M) | -$3,079 | $29,095 | $53,684 | -$43,597 | -$17,438 | $1,772 |
| Total Debt (M) | $337,636 | $370,154 | $369,719 | $376,697 | $391,584 | $409,672 |
| Net Debt / EBITDA | 59.54 | 280.63 | 130.29 | 302.28 | 180.28 | 255.3 |
NatWest's financial statements include several red flags such as weak net margins with a stable trend, good EPS growth resulting mainly from stock repurchases, and positive cash flows. Additionally, the firm has a highly leveraged balance sheet.
a Decline in Expected Earnings Clouds Its Value Outlook but Trading Above Its Fair Price:
NatWest has a trailing twelve month P/E ratio of 9.2, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $1.14, the company has a forward P/E ratio of 12.7. According to the 23.5% compound average growth rate of NatWest's historical and projected earnings per share, the company's PEG ratio is 0.39. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 14.8%. On this basis, the company's PEG ratio is 0.62. This suggests that its shares are undervalued. In contrast, NatWest is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.28 is higher than the sector average of 1.78. The company's shares are currently trading 94.1% below their Graham number.
NatWest Has a Small Amount of Insider Shareholders:
NatWest has a very low short interest because 0.1% of the company's shares are sold short. Institutions own 4.7% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Fisher Asset Management, LLC, whose 1% stake in the company is worth $547,020,031.
