NWG Stock Analysis: Natwest | NYSE
Banks - Regional | NYSE, USA | Market Cap: 71.461m USD | 12M Return: 39.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 64.4M
EPS Trend: -17.7%
Qual. Beats: 0
Rev. Trend: 87.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
NatWest Group plc (NWG) is a UK-headquartered diversified bank that provides banking and financial services to retail, private, and commercial/institutional customers both domestically and internationally. The company operates through three core segments: Retail Banking (current accounts, mortgages, personal lending, and deposits), Private Banking (banking, lending, and wealth management for high-net-worth individuals), and Commercial & Institutional (business banking, mid-market, and corporate/institutional services across the UK and select overseas hubs such as the Channel Islands, Isle of Man, Gibraltar, and Luxembourg).
Founded in 1727 and headquartered in Edinburgh, the group was formerly known as The Royal Bank of Scotland Group plc before rebranding to NatWest Group plc in July 2020. As one of the largest UK-listed retail and commercial banks in the Diversified Banks sub-industry, it operates a universal banking model covering retail deposits and mortgages, wealth management, and wholesale/institutional banking, with a growing emphasis on digital and mobile banking channels.
- UK interest rate cuts compress net interest margins
- UK Treasury share sell-down program caps valuation upside
- Mortgage and retail lending growth supports segment revenue
| Net Income: 5.99b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.67 > 1.0 |
| NWC/Revenue: -1.40k% < 20% (prev -1.29k%; Δ -116.0% < -1%) |
| CFO/TA 0.01 > 3% & CFO 7.07b > Net Income 5.99b |
| Net Debt (-76.0b) to EBITDA (9.10b): -8.35 < 3 |
| Current Ratio: 0.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.01b) vs 12m ago -1.67% < -2% |
| Gross Margin: 57.38% > 18% (prev 52.34%; Δ 5.04% > 0.5%) |
| Asset Turnover: 4.05% > 50% (prev 4.08%; Δ -0.02% > 0%) |
| Interest Coverage Ratio: 0.63 > 6 (EBIT TTM 7.93b / Interest Expense TTM 12.6b) |
| A: -0.55 (Total Current Assets 136b - Total Current Liabilities 551b) / Total Assets 750b |
| B: 0.02 (Retained Earnings 15.6b / Total Assets 750b) |
| C: 0.01 (EBIT TTM 7.93b / Avg Total Assets 730b) |
| D: 0.06 (Book Value of Equity 43.7b / Total Liabilities 706b) |
| Altman-Z'' = -3.43 = D |
As of July 28, 2026, the stock is trading at USD 18.31 with a total of 6,687,263 shares traded. Over the past week, the price has changed by +3.56%, over one month by +4.93%, over three months by +16.85% and over the past year by +39.91%.
Current recommended Stop Loss: 17.70 (which is 3.3% or 1.5 ATR below the current price).
Natwest has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy NWG.
- StrongBuy: 1
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 20.5 | 11.9% |
P/E Trailing = 9.6096
P/E Forward = 9.7466
P/S = 4.3965
P/B = 1.2162
P/EG = 2.7069
Revenue TTM = 29.6b USD
EBIT TTM = 7.93b USD
EBITDA TTM = 9.10b USD
Long Term Debt = 59.8b USD (from longTermDebt, last fiscal year)
Short Term Debt = unknown (none)
Debt = 59.8b USD (corrected: LT Debt 59.8b + ST Debt none)
Net Debt = -76.0b USD (calculated: Debt 59.8b - CCE 136b)
Enterprise Value = 71.5b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 0.63 (Ebit TTM 7.93b / Interest Expense TTM 12.6b)
EV/FCF = 12.34x (Enterprise Value 71.5b / FCF TTM 5.79b)
FCF Yield = 8.10% (FCF TTM 5.79b / Enterprise Value 71.5b)
FCF Margin = 19.57% (FCF TTM 5.79b / Revenue TTM 29.6b)
Net Margin = 20.26% (Net Income TTM 5.99b / Revenue TTM 29.6b)
Gross Margin = 57.38% ((Revenue TTM 29.6b - Cost of Revenue TTM 12.6b) / Revenue TTM)
Gross Margin QoQ = 59.01% (prev 58.05%)
Tobins Q-Ratio = 0.10 (Enterprise Value 71.5b / Total Assets 750b)
Interest Expense / Debt = 21.08% (Interest Expense 12.6b / Debt 59.8b)
Taxrate = 24.33% (1.93b / 7.93b)
NOPAT = 6.00b (EBIT 7.93b * (1 - 24.33%))
Current Ratio = 0.25 (Total Current Assets 136b / Total Current Liabilities 551b)
Debt / Equity = 1.37 (Debt 59.8b / totalStockholderEquity, last quarter 43.7b)
Debt / EBITDA = -8.35 (Net Debt -76.0b / EBITDA 9.10b)
Debt / FCF = -13.12 (Net Debt -76.0b / FCF TTM 5.79b)
Total Stockholder Equity = 42.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.82% (Net Income 5.99b / Total Assets 750b)
RoE = 14.06% (Net Income TTM 5.99b / Total Stockholder Equity 42.6b)
RoCE = 7.74% (EBIT 7.93b / Capital Employed (Equity 42.6b + L.T.Debt 59.8b))
RoIC = 3.04% (NOPAT 6.00b / Invested Capital 197b)
WACC = 12.00% (E(71.5b)/V(131b) * Re(8.70%) + D(59.8b)/V(131b) * Rd(21.08%) * (1-Tc(0.24)))
Discount Rate = 8.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.52 | Cagr: -12.23%
[DCF] Terminal Value 67.09% ; FCFF base≈3.75b ; Y1≈4.30b ; Y5≈6.33b
[DCF] Fair Price = 33.62 (EV 57.7b - Net Debt -76.0b = Equity 134b / Shares 3.98b; r=12.00% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -17.75 | EPS CAGR: -26.00% | SUE: 0.00 | # QB: 0
Revenue Correlation: 87.16 | Revenue CAGR: 15.29% | SUE: 0.73 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.47 | Chg30d=-5.53% | Revisions=-25% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.52 | Chg30d=-1.28% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=1.88 | Chg30d=N/A | Revisions=+0% | GrowthEPS=+5.6% | GrowthRev=+8.1%
EPS next Year (2027-12-31): EPS=2.09 | Chg30d=N/A | Revisions=+0% | GrowthEPS=+11.2% | GrowthRev=+8.2%