Nationwide Building Society (NBS) AI Stock Analysis

• Market Cap: £1.38B
• Dividend Yield: N/A
• Average Volume (3M): 559.00
• Price to Earnings (P/E): 0.5
• Beta (1Y): 0.14
• Revenue Growth: 15.87%
• EPS Growth: -35.40%
• Country: UK
• Employees: 18,310
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 206.42
• Shares Outstanding: 10,555,500
• 10 Day Avg. Volume: 1,031
• 30 Day Avg. Volume: 559
• PEG Ratio: 0.02
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Nationwide Building Society's overall stock score reflects its solid financial performance, with strong cash flow management and an attractive valuation indicated by a low P/E ratio. However, technical analysis suggests bearish trends, which along with income inconsistency and declining net profit margins, pose challenges. Positive corporate events provide reassurance about long-term financial stability and enhance market perception.

Nationwide Building Society Business Overview & Revenue Model

Company Description

Nationwide Building Society, together with its subsidiaries, provides retail financial services in the United Kingdom. The company offers current, savings, and individual savings accounts; residential mortgages; overdrafts, personal loans, car loans, and home improvement loans; and credit cards. It also provides loans to registered social landlords, loans made under the private finance initiatives, and commercial real estate loans. In addition, the company offers home, life, income protection, travel, mobile phone, and breakdown insurance; and investment products and services, such as financial planning services. Further, it provides treasury liquidity, derivative, and discretionary services; and mobile and Internet banking services. The company was founded in 1846 and is headquartered in Swindon, the United Kingdom.

How the Company Makes Money

Nationwide Building Society generates revenue through interest income, fees, and commissions. The primary source of income is the interest earned from mortgage lending, which constitutes a significant part of its loan portfolio. Additionally, NBS earns interest from personal loans and credit card balances held by its members. The society also collects fees and commissions from various financial services, including insurance products, investment services, and account maintenance fees. As a mutual organization, Nationwide does not have shareholders, and profits are typically reinvested to improve services, offer better rates, and maintain financial stability for its members. Strategic partnerships with other financial service providers also contribute to its revenue streams, enhancing its product offerings and market reach.

Nationwide Building Society Financial Statement Overview

Summary

Nationwide Building Society presents a generally strong financial position with some areas of concern. The income statement shows operational efficiency but faces challenges in consistent revenue growth and net income. The balance sheet is robust, with good leverage management and equity growth, although the decrease in ROE needs attention. The cash flow statement is a standout, with excellent free cash flow growth and cash generation. Overall, the company appears stable with positive cash flow trends, though it must address income inconsistency and net profit challenges.

Income Statement

Nationwide Building Society has shown a mixed performance in its income statement. The gross profit margin is strong due to the high gross profit, but the net profit margin has decreased recently. Revenue growth has been inconsistent, with a notable decline in 2024 after a significant increase in 2023. The EBIT margin is stable, indicating consistent operational efficiency. EBITDA margin has improved dramatically from negative values, indicating better cost management and operational performance. Overall, while there are signs of improvement, the inconsistency in revenue growth and declining net income are concerns.

Balance Sheet

The balance sheet reflects a solid financial position with a strong equity base, as shown by the increasing stockholders' equity. The debt-to-equity ratio is moderate, indicating manageable leverage levels. Return on equity has been good, though there was a drop in 2024. The equity ratio suggests a healthy proportion of assets financed by equity. Overall, the balance sheet is strong, with manageable debt and good equity levels, though the declining ROE is a point to watch.

Cash Flow

Cash flow analysis shows robust operating cash flow, significantly surpassing net income, indicating strong cash generation capabilities. Free cash flow has shown impressive growth, particularly in 2024, which suggests excellent cash management and capital expenditure control. The free cash flow to net income ratio is healthy, further reinforcing strong cash performance. Overall, the cash flow statement reflects a very positive trend with strong cash generation and prudent management of capital expenditures.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
9.45B	4.67B	9.32B	5.04B	4.54B	5.64B
	Gross Profit
7.56B	4.74B	9.32B	5.04B	4.54B	5.64B
	EBIT
1.91B	2.30B	2.29B	1.72B	932.00M	547.00M
	EBITDA
1.75B	2.23B	-57.00M	0.00	0.00	-157.00M
	Net Income Common Stockholders
999.00M	1.30B	1.66B	1.25B	618.00M	365.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	25.16B	25.95B	30.82B	17.70B	14.47B
	Total Assets
282.35B	271.92B	271.89B	272.35B	254.91B	248.04B
	Total Debt
55.58B	54.89B	61.17B	72.07B	64.36B	68.20B
	Net Debt
55.58B	-23.82B	35.22B	41.25B	46.66B	53.73B
	Total Liabilities
265.73B	254.23B	256.32B	257.99B	242.14B	235.67B
	Stockholders Equity
16.62B	17.69B	15.57B	14.36B	12.78B	12.37B
Cash Flow		Free Cash Flow
847.00M	7.08B	1.80B	1.07B	937.00M	143.00M
	Operating Cash Flow
927.00M	7.17B	2.14B	1.35B	1.28B	810.00M
	Investing Cash Flow
-6.11B	792.00M	-4.21B	-4.96B	-7.95B	-6.33B
	Financing Cash Flow
5.50B	-9.31B	-2.79B	16.72B	9.96B	6.08B

Nationwide Building Society Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13050.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NBS, the sentiment is Negative. The current price of 13050 is below the 20-day moving average (MA) of 13117.50, below the 50-day MA of 13111.00, and below the 200-day MA of 13169.25, indicating a bearish trend. The MACD of -23.40 indicates Positive momentum. The RSI at 14.91 is Positive, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NBS.

Nationwide Building Society Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	82 Outperform	£1.73B	8.87	14.68%	6.12%	27.88%	28.92%
OSB	77 Outperform	£1.81B	6.39	13.70%	9.24%	18.67%	17.42%
LLOY	75 Outperform	£45.91B	12.18	8.75%	5.54%	-4.18%	-16.04%
NBS	73 Outperform	£1.38B	0.52	13.32%	―	15.87%	-35.40%
ARBB	71 Outperform	£154.17M	6.25	9.57%	3.04%	15.14%	-31.65%
MTRO	68 Neutral	£755.17M	17.75	3.67%	―	-11.82%	-54.07%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%

Nationwide Building Society Corporate Events

Nationwide Building Society Issues €650 Million Subordinated Notes

Nationwide Building Society has announced the issuance of €650 million Fixed Rate Reset Tier 2 Subordinated Notes due in July 2035 as part of its $25 billion European Note Programme. This issuance is a strategic move to strengthen its financial position and enhance its capital structure, potentially impacting its market standing and offering reassurance to stakeholders about its long-term financial stability.

Spark’s Take on GB:NBS Stock

According to Spark, TipRanks’ AI Analyst, GB:NBS is a Neutral.

Nationwide Building Society’s overall stock score is driven by its strong financial performance, highlighted by excellent cash flow management, and an attractive valuation with a low P/E ratio. However, technical analysis indicates bearish trends, suggesting potential further downside. Despite positive corporate events enhancing financial stability and market perception, the main focus should be on addressing income inconsistency and improving net profit margins.

To see Spark’s full report on GB:NBS stock, click here.

Nationwide Announces £600m Member Payout

Nationwide Building Society has announced a one-off discretionary payment of £50 to over 12 million members, termed ‘The Big Nationwide Thank You’. This distribution, amounting to over £600 million, will be reflected in the financial statements for the period ending 31 March 2025, impacting the Group’s CET1 and leverage ratios. This gesture signifies Nationwide’s commitment to returning value to its members and may influence its financial metrics and market perception.

Nationwide Building Society Issues €1 Billion in Senior Notes

Nationwide Building Society has announced the issuance of €1 billion in Senior Preferred Notes with a 3% interest rate, due in March 2030, as part of its $25 billion European Note Programme. This move is likely to bolster the company’s financial position and provide additional capital for its operations, potentially impacting its market competitiveness and offering new opportunities for stakeholders.

Nationwide Building Society to Redeem €1 Billion Senior Notes

Nationwide Building Society has announced its decision to fully redeem its €1,000,000,000 Fixed-to-Floating Rate Senior Non-Preferred Notes due in March 2026, on March 10, 2025. This redemption will result in the cancellation of the Notes and cessation of interest payments, and Nationwide will request the cancellation of the Notes’ listing on the London Stock Exchange, reflecting a significant step in its financial strategy.