NatWest Group plc (NWG.L) stock analysis

In our weekly check, NatWest Group plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 1, red flags: 9.

About NatWest Group plc

NatWest Group plc is a Financial Services company (Banks - Regional) based in the United Kingdom, listed on LSE as NWG.L.

What our checks show for NWG.L

Red flags

• The net margin fell by 7.4 points over 5 years, to 19.8%: the company keeps less of each sale as profit.
• The gross margin fell by 29.5 points, to 56.3%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 11.2% a year.
• Free cash flow is negative (-58.8% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 99% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.2%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The stock is still below its previous peak.

Strengths

• Analysts expect earnings per share to grow about 10.9% a year over the next years.
• Analysts expect the net margin to improve by 15.3 points from today's 19.8%.
• Revenue grew 22.2% a year over the last 3 years.
• Earnings per share grew 26% a year over the last 3 years.
• Net profit grew 17.6% a year over the last 3 years.
• The dividend takes 30% of profit: there is a cushion.

Next earnings report: 2026-10-30

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Questions

What grade does NatWest Group plc (NWG.L) have?

In our weekly check, NatWest Group plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 1, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NWG.L stock?

This week's biggest flags for NatWest Group plc: Margins falling, Gross margin falling, Profits not backed by cash. In total 10 of 25 checks show a warning or a red flag.

What does NatWest Group plc do?

NatWest Group plc is a Financial Services company (Banks - Regional) based in the United Kingdom, listed on LSE as NWG.L.

When does NatWest Group plc report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

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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