Canadian Western Bank (CWB.CA) Fundamental Analysis & Valuation

TSX:CWB • CA13677F1018

Current stock price

56.63 CAD
-0.62 (-1.08%)
Last:

This CWB.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. CWB.CA Profitability Analysis

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.
  • CWB had a positive operating cash flow in 4 of the past 5 years.
CWB.CA Yearly Net Income VS EBIT VS OCF VS FCFCWB.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

  • CWB has a Return On Assets of 0.62%. This is comparable to the rest of the industry: CWB outperforms 40.63% of its industry peers.
  • CWB has a worse Return On Equity (6.14%) than 90.63% of its industry peers.
Industry RankSector 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
CWB.CA Yearly ROA, ROE, ROICCWB.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

  • The Profit Margin of CWB (22.63%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of CWB has declined.
  • CWB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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
CWB.CA Yearly Profit, Operating, Gross MarginsCWB.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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2

2. CWB.CA Health Analysis

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.
  • The number of shares outstanding for CWB has been increased compared to 5 years ago.
  • Compared to 1 year ago, CWB has a worse debt to assets ratio.
CWB.CA Yearly Shares OutstandingCWB.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
CWB.CA Yearly Total Debt VS Total AssetsCWB.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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.
  • CWB has a Debt to Equity ratio of 0.97. This is amongst the best in the industry. CWB outperforms 90.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 7.63
Altman-Z N/A
ROIC/WACCN/A
WACC16.41%
CWB.CA Yearly LT Debt VS Equity VS FCFCWB.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
CWB.CA Yearly Current Assets VS Current LiabilitesCWB.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CWB.CA Growth Analysis

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.
  • CWB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.41%.
  • CWB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.56% yearly.
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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CWB.CA Yearly Revenue VS EstimatesCWB.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
CWB.CA Yearly EPS VS EstimatesCWB.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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2

4. CWB.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.75 indicates a rather expensive valuation of CWB.
  • 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 26.77, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 16.34, the valuation of CWB can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CWB indicates a rather expensive valuation: CWB more expensive than 96.88% of the companies listed in the same industry.
  • CWB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.75
Fwd PE 16.34
CWB.CA Price Earnings VS Forward Price EarningsCWB.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 9.91
EV/EBITDA N/A
CWB.CA Per share dataCWB.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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

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6

5. CWB.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.54%, CWB has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.54, CWB pays less dividend than the industry average, which is at 3.08. 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 1.82, CWB pays a bit more dividend than the S&P500 average.
Industry RankSector 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
CWB.CA Yearly Dividends per shareCWB.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

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.
  • 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
CWB.CA Yearly Income VS Free CF VS DividendCWB.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B
CWB.CA Dividend Payout.CWB.CA Dividend Payout, showing the Payout Ratio.CWB.CA Dividend Payout.PayoutRetained Earnings

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CWB.CA Fundamentals: All Metrics, Ratios and Statistics

Canadian Western Bank

TSX:CWB (2/4/2025, 7:00:00 PM)

56.63

-0.62 (-1.08%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Industry Strength82.68
Industry Growth95.52
Earnings (Last)12-18
Earnings (Next)02-27
Inst Owners30.8%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap5.48B
Revenue(TTM)1.18B
Net Income(TTM)267.88M
Analysts70
Price Target53.46 (-5.6%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham Number0 (-100%)
Profitability
Industry RankSector 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
ROICexgc growth 3YN/A
ROICexgc 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 RankSector 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%

Canadian Western Bank / CWB.CA Fundamental Analysis FAQ

What is the fundamental rating for CWB stock?

ChartMill assigns a fundamental rating of 3 / 10 to CWB.CA.


What is the valuation status for CWB stock?

ChartMill assigns a valuation rating of 2 / 10 to Canadian Western Bank (CWB.CA). This can be considered as Overvalued.


Can you provide the profitability details for Canadian Western Bank?

Canadian Western Bank (CWB.CA) has a profitability rating of 2 / 10.


What is the valuation of Canadian Western Bank based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Canadian Western Bank (CWB.CA) is 18.75 and the Price/Book (PB) ratio is 1.26.


How sustainable is the dividend of Canadian Western Bank (CWB.CA) stock?

The dividend rating of Canadian Western Bank (CWB.CA) is 5 / 10 and the dividend payout ratio is 58.26%.