Canadian Western Bank (CWB.CA) Stock Fundamental Analysis
TSX:CWB - Toronto Stock Exchange - CA13677F1018 - Common Stock - Currency: CAD
Overall CWB gets a fundamental rating of 3 out of 10. We evaluated CWB against 30 industry peers in the Banks industry. Both the profitability and financial health of CWB have multiple concerns. CWB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CWB was profitable.
CWB had a positive operating cash flow in the past year.
Each year in the past 5 years CWB has been profitable.
Of the past 5 years CWB 4 years had a positive operating cash flow.
1.2 Ratios
CWB's Return On Assets of 0.62% is in line compared to the rest of the industry. CWB outperforms 40.63% of its industry peers.
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
With a Profit Margin value of 22.63%, CWB perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
In the last couple of years the Profit Margin of CWB has declined.
The Operating Margin and Gross Margin are not available for CWB so they could not be analyzed.
| 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.
CWB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWB has more shares outstanding
The debt/assets ratio for CWB is higher compared to a year ago.
2.2 Solvency
CWB has a debt to FCF ratio of 7.63. This is a slightly negative value and a sign of low solvency as CWB would need 7.63 years to pay back of all of its debts.
CWB has a better Debt to FCF ratio (7.63) than 62.50% of its industry peers.
CWB has a Debt/Equity ratio of 0.97. This is a neutral value indicating CWB is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.97, CWB belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
| 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.
CWB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.78% yearly.
The Revenue has been growing slightly by 6.41% in the past 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.
The Revenue is expected to grow by 5.44% on average over the next years.
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
With a Price/Earnings ratio of 18.75, CWB is valued on the expensive side.
CWB's Price/Earnings ratio is rather expensive when compared to the industry. CWB is more expensive than 96.88% of the companies in the same industry.
CWB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of CWB.
CWB's Price/Forward Earnings ratio is rather expensive when compared to the industry. CWB is more expensive than 96.88% of the companies in the same industry.
CWB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.20, 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
CWB's Price/Free Cash Flow ratio is rather expensive when compared to the industry. CWB is 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.
A more expensive valuation may be justified as CWB's earnings are expected to grow with 12.25% in the coming years.
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%.
With a Dividend Yield of 2.54, CWB pays less dividend than the industry average, which is at 4.19. 90.63% of the companies listed in the same industry pay a better dividend than CWB!
Compared to an average S&P500 Dividend Yield of 2.40, CWB has a dividend comparable with the average S&P500 company.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
CWB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.68%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
CWB pays out 58.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
CWB's earnings are growing more than its dividend. This makes the dividend growth 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%