RBS  Royal Bank Scotland Group Plc

Exchange

NYSE

Sector

Finance

Industry

Commercial Banks

Market Cap.

39.22B

Current Price

$6.64
+0.13 (+2.00%)

Book Price

$11.96
Undervalued by 80.16%
Financial Institution

Company Metrics

  • P/E 0
  • P/S 2.33
  • P/B 0.6
  • EPS -1.28
  • Dividend 0 / 0%
  • Avg. Vol. 981,014.00
  • Shares 5.91B
  • Market Cap. 39.22B

Company Description

The Royal Bank of Scotland Group plc, through its subsidiaries, offers banking and financial services to personal, commercial, corporate, and institutional customers in the United Kingdom, the United States, and internationally. Its UK Retail segment offers banking products and related financial services to the personal market. The company's UK Corporate segment provides banking, finance, and risk... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Market Risers: Prudential plc, Rio Tinto plc, Royal Bank of Scotland Group plc ...
DirectorsTalk Interviews - 11 hours ago
Shares of Royal Bank of Scotland Group plc with EPIC code: LON:RBS has increased 1.83% or 4.5 points throughout today's trading session so far.
Stagecoach Group plc (LON:SGC) Price Target Increased to GBX 225 by Analysts ... - Sports Perspectives
American Airlines, ABM rise; Royal Bank of Scotland slips
Washington Post - Jul 12, 2017
Royal Bank of Scotland Group PLC, down 10 cents to $6.58. The bank agreed to pay $5.5 billion to settle an investigation into its sale of mortgage-backed securities before the financial crisis.
Royal Bank of Scotland Moves Jobs to India to Cut Costs
Zacks.com - Jun 27, 2017
The Royal Bank of Scotland Group plc (RBS - Free Report) is reducing its workforce by almost 443 employees in the U.K. in order to combat rising expenses.
Timber Creek Capital Management Has Decreased By $1.17 Million Its Qualcomm ... - HuronReport
Royal Bank Of Scotland Group Plc (NYSE:RBS) Receives An Update From Brokers - The De Soto Edge
Investors' Radars Failed to Catch Royal Bank of Scotland Group (RBS), Has Yours?
Nasdaq - Jul 5, 2017
One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is The Royal Bank of Scotland Group plc RBS . This Foreign Banks stock has actually seen estimates rise over the past month for the current ...
Royal Bank Of Scotland Group (LON:RBS) Recent Analyst Updates - Newburgh Gazette
Analyst Commentary On Sunrun Inc. (RUN), The Royal Bank of Scotland Group plc ... - Post Analyst
ADRs End Higher; Royal Bank of Scotland, Petrobras Trade Actively
Fox Business - Jul 12, 2017
Royal Bank of Scotland Group PLC (RBS) and Petroleo Brasileiro SA (PBR) were among those with ADRs that traded actively. U.K.
Taxpayer's loss in government's RBS stake sale worse than thought, NAO reveals
Proactive Investors UK - Jul 14, 2017
Taxpayers nursed a £1.9bn loss after the government's only sale of Royal Bank of Scotland Group plc's (LON:RBS) shares two years ago but it still represented “value for money”, according to calculations by the National Audit Office.
RBS reaches US$5.5bn settlement with US regulators over mortgage mis-selling ...
Proactive Investors UK - Jul 12, 2017
Royal Bank of Scotland Group plc (LON:RBS) has agreed a US$5.5bn settlement with US regulators over the mis-selling of residential mortgage-backed securities.
RBS Paid a Big Penalty Over Mortgages. Its Next One May Be Bigger - Bloomberg
RBS finally settles multibillion-dollar lawsuit with FHFA over mortgage-backed ... - HousingWire
Trading Center: Watching Key Levels For Royal Bank of Scotland Group PLC (RBS.L)
The Business Union - 12 hours ago
After a recent look, Royal Bank of Scotland Group PLC (RBS.L) has a 50-day Moving Average of 254.99, the 200-day Moving Average is 231.60, and the 7-day is noted at 249.62.
The Royal Bank of Scotland Group plc (LSE:RBS): A Look at the Stock's F-Score
Rockville Register - 1 hour ago
The Piotroski F-Score of The Royal Bank of Scotland Group plc (LSE:RBS) is 3. The Piotroski F-Score is a scoring system between 1-9 that determines a firm's financial strength.
Chartists Placing Royal Bank of Scotland Group PLC (RBS.L) on Their Radar
Clayton News - 21 hours ago
Royal Bank of Scotland Group PLC (RBS.L) shares are moving today on volatility 1.55% or $3.80 from the open. The LSE listed company saw a recent bid of 249.70 and 1340000 shares have traded hands in the session.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for RBS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate RBS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

RBS has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

RBS has only created $- of cash for every $100 invested.
Figures in GBP. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 1.31T 1.03T 1.05T 815.41B 798.66B
Cash ROIC - - - - -

Very Poor Return on Equity over the past 5 years

RBS has shown an inability to deliver results for shareholders. This could be due to poor management, RBS operating in a highly competitive industry, or having a weak business in general.

RBS has generated a $8.32 loss for every $100 of Shareholders' Equity.
Figures in GBP. Fiscal year ends in December
20122013201420152016
Net Income -5.68B -8.60B -2.77B -1.59B -5.26B
divided by
Stockholders' Equity 68.13B 58.74B 57.25B 53.43B 48.61B
Return on Equity -8.34% -14.64% -4.84% -2.98% -10.82%

Poor Business Performance over the past 10 years

RBS's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

RBS has been losing money for the majority of the past 10 years.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Low or No Reinvestment of Profits over the past 10 years

RBS has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to RBS operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 21.07B 7.54B 12.13B - 18.93B 10.60B - -2.52B -4.02B -12.94B
Retained Earnings Growth - -64.21% 60.89% -100.00% - -44.02% -100.00% - -59.65% -221.79%

Highly Competitive Industry over the past 10 years

It's likely that RBS is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely RBS invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 7.30B -24.14B -3.61B -1.13B -2.00B -5.68B -8.60B -2.77B -1.59B -5.26B
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

RBS is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that RBS has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

RBS has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that RBS may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 7.30B -24.14B -3.61B -1.13B -2.00B -5.68B -8.60B -2.77B -1.59B -5.26B
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

RBS has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests RBS is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 3.41B 3.19B 1.25B 4.24B 40.00M 301.00M 403.00M 383.00M 416.00M 504.00M
divided by
Shares Outstanding 498.30M 828.15M 2.67B 5.36B 5.41B 5.50B 5.60B 5.72B 5.79B 5.87B
Dividend Paid Per Share 10.86 6.12 0.74 1.25 0.01 0.09 0.11 0.11 0.11 0.14
Price at Year End - - - 14.79 11.20 10.41 11.26 12.06 8.94 5.53
Dividend Yield - - - 8.49% 0.10% 0.83% 1.01% 0.88% 1.28% 2.46%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that RBS hasn't initiated a stock buyback.
Figures in GBP. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 498.30M 828.15M 2.67B 5.36B 5.41B 5.50B 5.60B 5.72B 5.79B 5.87B
Stock Bought Back - -39.83% -68.94% -50.27% -0.90% -1.64% -1.73% -2.19% -1.11% -1.42%
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