Is Royal Bank of Scotland Undervalued?
With shares of Royal Bank of Scotland (NYSE:RBS) trading around $10, is Royal Bank of Scotland an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Royal Bank of Scotland is a global banking and financial services group that operates in the United Kingdom, the United States, and internationally through its two principal subsidiaries: The Royal Bank of Scotland and National Westminster Bank. In the United States, the subsidiary of the Royal Bank of Scotland, Citizens Financial Group, is a commercial banking organization. The company includes business segments of UK Retail, UK Corporate, Wealth, Global Transaction Services, Ulster Bank, US Retail & Commercial, Global Banking & Markets, RBS Insurance, Central items, and Non-Core Division and Business Services.
Royal Bank of Scotland has recently named Ross McEwan as its new CEO. McEwan will replace Stephen Hester on October 1, as the bank continues to face pressure to downsize from the British government. The government is pushing RBS to consider breaking up as it attempts to get back some of the 45.5 billion pounds it spent on the bank’s bailout. The bank presented a lackluster earnings report with profit at RBS’s core businesses falling 17 percent.