(NWG) Natwest - Overview
Stock: Banking, Mortgages, Lending, Deposits
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 5.11% |
| Yield on Cost 5y | 18.02% |
| Yield CAGR 5y | 40.19% |
| Payout Consistency | 35.7% |
| Payout Ratio | 47.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 42.9% |
| Relative Tail Risk | 0.16% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.71 |
| Alpha | 58.14 |
| Character TTM | |
|---|---|
| Beta | 0.876 |
| Beta Downside | 0.926 |
| Drawdowns 3y | |
|---|---|
| Max DD | 39.33% |
| CAGR/Max DD | 1.12 |
Description: NWG Natwest January 28, 2026
NatWest Group plc (NYSE:NWG) operates three core segments: Retail Banking (consumer deposits, mortgages, personal loans, and digital channels), Private Banking (wealth-management and lending for high-net-worth clients), and Commercial & Institutional (business banking, mid-market, and corporate services across the UK and select offshore jurisdictions). The firm traces its origins to 1727 and rebranded from Royal Bank of Scotland Group in July 2020.
In its most recent interim report (Q3 2024), NatWest posted a net interest margin of 1.78 % (down 4 bps YoY) and a loan-to-deposit ratio of 92 %, reflecting modest credit growth amid tightening UK mortgage rates. The CET1 capital ratio held at 13.5 %, comfortably above the 10.5 % regulatory minimum, while pre-tax profit fell 6 % to £1.1 bn, largely due to higher cost-inflation and a 1.2 % increase in loan-loss provisions.
Key macro drivers for NatWest include the Bank of England’s policy rate (currently 5.25 %), UK GDP growth of 0.3 % annualised in Q4 2023, and persistent housing market stress, which together shape mortgage demand and credit risk. The UK banking sector’s average NIM has compressed by roughly 15 bps over the past 12 months, pressuring profitability across diversified banks.
For a deeper quantitative assessment, consult the ValueRay platform’s latest analyst metrics.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 5.68b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA 0.03 > 1.0 |
| NWC/Revenue: -1544 % < 20% (prev -2369 %; Δ 825.4% < -1%) |
| CFO/TA 0.01 > 3% & CFO 6.89b > Net Income 5.68b |
| Net Debt (-78.55b) to EBITDA (8.42b): -9.33 < 3 |
| Current Ratio: 0.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.11b) vs 12m ago -1.92% < -2% |
| Gross Margin: 54.82% > 18% (prev 0.21%; Δ 5460 % > 0.5%) |
| Asset Turnover: 4.08% > 50% (prev 2.45%; Δ 1.63% > 0%) |
| Interest Coverage Ratio: 0.55 > 6 (EBITDA TTM 8.42b / Interest Expense TTM 13.25b) |
Altman Z'' -3.93
| A: -0.62 (Total Current Assets 84.69b - Total Current Liabilities 537.44b) / Total Assets 725.63b |
| B: 0.02 (Retained Earnings 13.16b / Total Assets 725.63b) |
| C: 0.01 (EBIT TTM 7.26b / Avg Total Assets 718.77b) |
| D: 0.03 (Book Value of Equity 23.23b / Total Liabilities 683.25b) |
| Altman-Z'' Score: -3.93 = D |
What is the price of NWG shares?
Over the past week, the price has changed by -0.66%, over one month by +1.86%, over three months by +14.26% and over the past year by +69.90%.
Is NWG a buy, sell or hold?
- StrongBuy: 1
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the NWG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 17.2 | -4.9% |
| Analysts Target Price | 17.2 | -4.9% |
| ValueRay Target Price | 27.2 | 50.1% |
NWG Fundamental Data Overview February 07, 2026
P/E Trailing = 10.0284
P/E Forward = 9.9701
P/S = 4.5294
P/B = 1.3027
P/EG = 4.1535
Revenue TTM = 29.33b GBP
EBIT TTM = 7.26b GBP
EBITDA TTM = 8.42b GBP
Long Term Debt = 73.77b GBP (from longTermDebt, last quarter)
Short Term Debt = 37.00b GBP (from shortTermDebt, last quarter)
Debt = 6.14b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = -78.55b GBP (from netDebt column, last quarter)
Enterprise Value = -26.97b GBP (51.58b + Debt 6.14b - CCE 84.69b)
Interest Coverage Ratio = 0.55 (Ebit TTM 7.26b / Interest Expense TTM 13.25b)
EV/FCF = -38.87x (Enterprise Value -26.97b / FCF TTM 694.0m)
FCF Yield = -2.57% (FCF TTM 694.0m / Enterprise Value -26.97b)
FCF Margin = 2.37% (FCF TTM 694.0m / Revenue TTM 29.33b)
Net Margin = 19.38% (Net Income TTM 5.68b / Revenue TTM 29.33b)
Gross Margin = 54.82% ((Revenue TTM 29.33b - Cost of Revenue TTM 13.25b) / Revenue TTM)
Gross Margin QoQ = 57.41% (prev 55.01%)
Tobins Q-Ratio = -0.04 (set to none) (Enterprise Value -26.97b / Total Assets 725.63b)
Interest Expense / Debt = 52.38% (Interest Expense 3.21b / Debt 6.14b)
Taxrate = 23.00% (502.0m / 2.18b)
NOPAT = 5.59b (EBIT 7.26b * (1 - 23.00%))
Current Ratio = 0.16 (Total Current Assets 84.69b / Total Current Liabilities 537.44b)
Debt / Equity = 0.14 (Debt 6.14b / totalStockholderEquity, last quarter 42.36b)
Debt / EBITDA = -9.33 (Net Debt -78.55b / EBITDA 8.42b)
Debt / FCF = -113.2 (out of range, set to none) (Net Debt -78.55b / FCF TTM 694.0m)
Total Stockholder Equity = 41.32b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.79% (Net Income 5.68b / Total Assets 725.63b)
RoE = 13.76% (Net Income TTM 5.68b / Total Stockholder Equity 41.32b)
RoCE = 6.31% (EBIT 7.26b / Capital Employed (Equity 41.32b + L.T.Debt 73.77b))
RoIC = 7.13% (NOPAT 5.59b / Invested Capital 78.41b)
WACC = 8.17% (E(51.58b)/V(57.71b) * Re(9.14%) + (debt cost/tax rate unavailable))
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -13.60%
[DCF Debug] Terminal Value 69.46% ; FCFF base≈617.2m ; Y1≈405.2m ; Y5≈184.9m
Fair Price DCF = 20.58 (EV 3.51b - Net Debt -78.55b = Equity 82.06b / Shares 3.99b; r=8.17% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: 8.91 | EPS CAGR: -37.33% | SUE: -0.03 | # QB: 0
Revenue Correlation: 70.73 | Revenue CAGR: 31.11% | SUE: 0.80 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.47 | Chg30d=N/A | Revisions Net=+0 | Analysts=1
EPS next Year (2026-12-31): EPS=1.89 | Chg30d=+0.039 | Revisions Net=+1 | Growth EPS=+7.8% | Growth Revenue=+6.2%