Nedbank Group Limited (NED.JO) stock analysis

In our weekly check, Nedbank Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About Nedbank Group Limited

Nedbank Group Limited is a Financial Services company (Banks - Regional) based in South Africa, listed on JNB as NED.JO.

What our checks show for NED.JO

Red flags

• The net margin fell by 8.1 points over 5 years, to 5.9%: the company keeps less of each sale as profit.
• The gross margin fell by 17.2 points, to 43.9%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 17.2% a year.
• The dividend takes 1983% of profit: little cushion if profit falls.
• A small company (market value $79 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.8 years.
• Return on capital (ROCE) is only 1%.

Warning signs

• Earnings per share fell 16.9% a year over the last 3 years.
• Net profit fell 15.3% a year over the last 3 years.
• The net margin is only 5.9%: little room if costs rise.

Strengths

• Operating cash flow is 2.76x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 40.1% a year over the next years.
• Analysts expect the net margin to improve by 18.4 points from today's 5.9%.
• Revenue grew 40.9% a year over the last 3 years.
• Free cash flow is 14.4% of revenue: cash for dividends, buybacks or growth.
• The price is 14.9 times earnings (P/E), reasonable for its growth.

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Questions

What grade does Nedbank Group Limited (NED.JO) have?

In our weekly check, Nedbank Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NED.JO stock?

This week's biggest flags for Nedbank Group Limited: Margins falling, Gross margin falling, Weak revenue forecast. In total 12 of 25 checks show a warning or a red flag.

What does Nedbank Group Limited do?

Nedbank Group Limited is a Financial Services company (Banks - Regional) based in South Africa, listed on JNB as NED.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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