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NWG:NYSENatWest Group plc Analysis

Data as of 2026-05-27 - not real-time

$16.13

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

NatWest Group trades at a **trailing P/E of 8.58**, well below the industry average of 16.7, indicating a potentially undervalued position. The stock offers a **5.4% dividend yield** with a moderate payout ratio (~47%), supporting income‑focused investors. Recent Q1 results showed EPS of 17.9p versus 15.5p a year ago, beating expectations, yet revenue fell slightly short of forecasts, leaving analysts split. Technically, the price sits near the **resistance level of $16.23** with a bearish trend, a decreasing volume pattern, and a bullish MACD histogram, suggesting short‑term pressure but possible upside if momentum shifts.
Overall, the combination of attractive valuation metrics, solid dividend sustainability, and a 19% upside potential (vs. downside) supports a medium‑to‑long‑term buying case, while short‑term caution is warranted due to bearish momentum and liquidity concerns.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish technical trend and decreasing volume
  • Mixed earnings reaction – beat EPS but missed revenue expectations
  • Proximity to resistance level limiting upside

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Undervalued valuation relative to peers
  • Attractive dividend yield with sustainable payout
  • Positive earnings surprise and upside potential (~19%)

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Strong capital position and solid ROE (~14%)
  • Consistent dividend policy supporting total return
  • Low P/E and P/B ratios indicating long‑term value

Key Metrics & Analysis

Financial Health

Revenue Growth7.50%
Profit Margin36.88%
P/E Ratio8.6
ROE14.07%
ROA0.82%
P/B Ratio1.2
Industry P/E16.7

Technical Analysis

TrendBearish
RSI57.0
Support$14.73
Resistance$16.23
MA 20$15.49
MA 50$15.55
MA 200$15.82
MACDBullish
VolumeDecreasing
Fear & Greed Index91.32

Valuation

Target Price$19.24
Upside/Downside19.34%
GradeUndervalued
TypeValue
Dividend Yield5.42%

Risk Assessment

Beta1.43
Volatility34.16%
Sector RiskHigh
Reg. RiskHigh
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.