Canadian Western Bank (CWB.CA) Stock Fundamental Analysis
TSX:CWB - Toronto Stock Exchange - CA13677F1018 - Common Stock - Currency: CAD
Taking everything into account, CWB scores 3 out of 10 in our fundamental rating. CWB was compared to 30 industry peers in the Banks industry. CWB may be in some trouble as it scores bad on both profitability and health. 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.
In the past 5 years CWB has always been profitable.
Of the past 5 years CWB 4 years had a positive operating cash flow.
1.2 Ratios
CWB has a Return On Assets (0.62%) which is comparable to the rest of the industry.
The Return On Equity of CWB (6.14%) is worse than 90.63% of its industry peers.
| 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
CWB has a Profit Margin (22.63%) which is in line with its industry peers.
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.
The number of shares outstanding for CWB has been increased compared to 1 year ago.
CWB has more shares outstanding than it did 5 years ago.
CWB has a worse debt/assets ratio than last year.
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.
CWB has a Debt to FCF ratio of 7.63. This is in the better half of the industry: CWB outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that 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.
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
CWB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.25% yearly.
CWB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
The average S&P500 Price/Earnings ratio is at 26.25. CWB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.34, CWB is valued correctly.
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.
When comparing the Price/Forward Earnings ratio of CWB to the average of the S&P500 Index (22.15), we can say CWB is valued slightly cheaper.
| 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 expensively inside the industry as 87.50% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CWB's 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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.19, 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!
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 paid a dividend for at least 10 years, which is 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%