Canadian Western Bank (CWB.CA) Stock Fundamental Analysis
TSX:CWB - Toronto Stock Exchange - CA13677F1018 - Common Stock - Currency: CAD
CWB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 industry peers in the Banks industry. Both the profitability and financial health of CWB have multiple concerns. CWB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CWB had positive earnings in the past year.
In the past year CWB had a positive cash flow from operations.
CWB had positive earnings in each of the past 5 years.
Of the past 5 years CWB 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.62%, CWB perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.14%, CWB is doing worse than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 6.14% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.75%
ROE(3y)7.5%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 22.63%, CWB is in line with its industry, outperforming 40.63% of the companies in the same industry.
CWB's Profit Margin has declined in the last couple of years.
CWB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.63% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-11.12%
PM growth 5Y-6.09%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CWB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CWB has more shares outstanding
Compared to 5 years ago, CWB has more shares outstanding
Compared to 1 year ago, CWB has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CWB is 7.63, which is on the high side as it means it would take CWB, 7.63 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.63, CWB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that CWB is somewhat dependend on debt financing.
The Debt to Equity ratio of CWB (0.97) is better than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for CWB have decreased strongly by -15.64% in the last year.
The Earnings Per Share has been decreasing by -0.78% on average over the past years.
Looking at the last year, CWB shows a small growth in Revenue. The Revenue has grown by 6.41% in the last year.
The Revenue has been growing slightly by 6.56% on average over the past years.
EPS 1Y (TTM)-15.64%
EPS 3Y-7.45%
EPS 5Y-0.78%
EPS Q2Q%-27.66%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y5.23%
Revenue growth 5Y6.56%
Sales Q2Q%7.13%
3.2 Future
Based on estimates for the next years, CWB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.25% on average per year.
Based on estimates for the next years, CWB will show a small growth in Revenue. The Revenue will grow by 5.44% on average per year.
EPS Next Y14.77%
EPS Next 2Y12.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.13%
Revenue Next 2Y5.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.75, which indicates a rather expensive current valuation of CWB.
96.88% of the companies in the same industry are cheaper than CWB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.25, CWB is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of CWB.
Based on the Price/Forward Earnings ratio, CWB is valued expensively inside the industry as 96.88% of the companies are valued cheaper.
CWB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CWB is valued more expensive than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CWB's earnings are expected to grow with 12.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y12.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CWB has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.20, CWB's dividend is way lower than its industry peers. On top of this 90.63% of the companies listed in the same industry pay a better dividend than CWB!
CWB's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of CWB has a limited annual growth rate of 4.68%.
CWB has paid a dividend for at least 10 years, which is a reliable track record.
CWB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.68%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
58.26% of the earnings are spent on dividend by CWB. This is a bit on the high side, but may be sustainable.
The dividend of CWB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.26%
EPS Next 2Y12.25%
EPS Next 3YN/A
TSX:CWB (2/4/2025, 7:00:00 PM)
56.63
-0.62 (-1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners30.8%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap5.48B
Analysts70
Price Target53.46 (-5.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend1.62
Dividend Growth(5Y)4.68%
DP58.26%
Div Incr Years31
Div Non Decr Years31
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.69%
Min EPS beat(2)-30.52%
Max EPS beat(2)-22.86%
EPS beat(4)1
Avg EPS beat(4)-14.69%
Min EPS beat(4)-30.52%
Max EPS beat(4)1.04%
EPS beat(8)4
Avg EPS beat(8)-5.09%
EPS beat(12)5
Avg EPS beat(12)-4.04%
EPS beat(16)9
Avg EPS beat(16)0.69%
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)0.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-1.56%
Revenue beat(12)2
Avg Revenue beat(12)-1.93%
Revenue beat(16)5
Avg Revenue beat(16)-1.43%
PT rev (1m)0%
PT rev (3m)8.71%
EPS NQ rev (1m)-7.22%
EPS NQ rev (3m)-8.8%
EPS NY rev (1m)-5.94%
EPS NY rev (3m)-5.94%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.34 | ||
| P/S | 4.63 | ||
| P/FCF | 9.91 | ||
| P/OCF | 8 | ||
| P/B | 1.26 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.02
EY5.33%
EPS(NY)3.47
Fwd EY6.12%
FCF(TTM)5.71
FCFY10.09%
OCF(TTM)7.08
OCFY12.5%
SpS12.23
BVpS45.05
TBVpS41.11
PEG (NY)1.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 6.14% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.63% | ||
| GM | N/A | ||
| FCFM | 46.7% |
ROA(3y)0.71%
ROA(5y)0.75%
ROE(3y)7.5%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-11.12%
PM growth 5Y-6.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 185.95% | ||
| Cap/Sales | 11.16% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 206.4% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.41%
ROIC/WACCN/A
Cap/Depr(3y)145.14%
Cap/Depr(5y)128.04%
Cap/Sales(3y)9.15%
Cap/Sales(5y)7.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.64%
EPS 3Y-7.45%
EPS 5Y-0.78%
EPS Q2Q%-27.66%
EPS Next Y14.77%
EPS Next 2Y12.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.41%
Revenue growth 3Y5.23%
Revenue growth 5Y6.56%
Sales Q2Q%7.13%
Revenue Next Year6.13%
Revenue Next 2Y5.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y189.15%
FCF growth 3Y-9.45%
FCF growth 5YN/A
OCF growth 1Y226.52%
OCF growth 3Y-5.07%
OCF growth 5Y102.74%