RBS  Royal Bank Scotland Group Plc

Exchange

NYSE

Sector

Finance

Industry

Commercial Banks

Market Cap.

42.07B

Current Price

$7.10
+0.025 (+0.354%)

Book Price

$11.96
Undervalued by 68.61%
Financial Institution

Company Metrics

  • P/E 0
  • P/S 2.393
  • P/B 0.646
  • EPS -0.89
  • Dividend 0 / 0%
  • Avg. Vol. 726,467.00
  • Shares 5.93B
  • Market Cap. 42.07B

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

The Royal Bank of Scotland Group plc (RBS) stock RSI made a progress toward 72.14
Voice Of Analysts - Sep 25, 2017
Analyzing the technical facts, The Royal Bank of Scotland Group plc (RBS)'s current distance from 20-Day Simple Moving Average is 7.18% and standing 7.07% away from 50-Day Simple Moving Average while traded up 14.38% from 200-Day Simple Moving ...
What's Behind Royal Bank of Scotland Group PLC (RBS.L)'s Movement
Stock Press Daily - 5 hours ago
Shares of Royal Bank of Scotland Group PLC (RBS.L) is moving on volatility today -0.15% or -0.40 from the open. The LSE listed company saw a recent bid of 261.00 on 1252130 volume.
FCA's refusal to publish report on RBS is 'shocking and unconscionable', says ...
Proactive Investors UK - Sep 15, 2017
The Financial Conduct Authority's (FCA) refusal to publish a report into Royal Bank of Scotland Group PLC's (LON:RBS) mistreatment of business customers is “shocking and unconscionable”, according to the group representing the affected firms.
UK Regulator Refuses Lawmaker Request to Publish RBS Report - Bloomberg
Royal Bank of Scotland Group plc 6.5% Potential Upside Indicated by Deutsche Bank
DirectorsTalk Interviews - Sep 19, 2017
Royal Bank of Scotland Group plc with EPIC/TICKER (LON:RBS) had its stock rating noted as 'Retains' with the recommendation being set at 'HOLD' this morning by analysts at Deutsche Bank.
Should You Buy The Royal Bank of Scotland Group plc (LSE:RBS)? - Simply Wall St
Royal Bank Of Scotland Group Plc (NYSE:RBS) Valuation According To Analysts - AppsforPCdaily
Is AA PLC a better investment than Standard Chartered PLC, Admiral Group plc ...
Investomania (blog) - 7 hours ago
That's disappointing and is a worse performance than other financial services companies such as Standard Chartered PLC (LON:STAN) (STAN.
Royal Bank of Scotland Group plc (RBS) Price Target Increased to GBX 265 by ... - Week Herald
Kaufman Adaptive Moving Average Trending Up for Royal Bank of Scotland Group ...
Benton Bulletin - 10 hours ago
Monitoring the numbers for Royal Bank of Scotland Group PLC (RBS), we are noting that the KAMA is trending up over the last five days.
The European Banking Landscape Has New Powerhouses: French Lenders
Fox Business - Sep 25, 2017
While European powerhouses such as Deutsche Bank AG, Credit Suisse Group AG and Royal Bank of Scotland Group PLC remain steeped in restructuring, Société Générale is expanding its lead in equities trading and BNP Paribas is growing its ...
Market Fallers: Royal Bank of Scotland Group plc, Standard Chartered PLC ...
DirectorsTalk Interviews - Sep 6, 2017
The share price for Royal Bank of Scotland Group plc with ticker code: LON:RBS has dropped -1.37% or -3.4 points during the course of today's session so far.
LONDON MARKETS: FTSE 100 Under Pressure As Banks Fall, Pound Rises Against The ...
Fox Business - Sep 25, 2017
Shares of Barclays PLC (BCS) (BCS) fell 1% and Lloyds Banking Group PLC (LLOY.LN) (LLOY.LN) lost 0.7%. Standard Chartered PLC (STAN.
Nike, Inc. (NKE) Shares Bought by Royal Bank of Scotland Group PLC
The Ledger Gazette - Sep 21, 2017
Nike logo Royal Bank of Scotland Group PLC raised its stake in Nike, Inc. (NYSE:NKE) by 6.2% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC).
Vontobel Asset Management Inc. Buys 604970 Shares of Nike, Inc. (NKE) - Dispatch Tribunal
IBM Retirement Fund Has $2.13 Million Holdings in Nike, Inc. (NKE) - StockNewsTimes
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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