LAURENTIAN BANK OF CANADA (LB.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:LB - CA51925D1069 - Common Stock
39.89 CAD
-0.02 (-0.05%)
LB gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 24 industry peers in the Banks industry. LB may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, LB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year LB was profitable.
- In the past year LB had a positive cash flow from operations.
- LB had positive earnings in 4 of the past 5 years.
- Of the past 5 years LB 4 years had a positive operating cash flow.
1.2 Ratios
- LB's Return On Assets of 0.25% is on the low side compared to the rest of the industry. LB is outperformed by 95.83% of its industry peers.
- LB has a worse Return On Equity (4.36%) than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 4.36% | ||
| ROIC | N/A |
ROA(3y)0.18%
ROA(5y)0.21%
ROE(3y)3.21%
ROE(5y)3.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- LB has a Profit Margin of 12.76%. This is amonst the worse of the industry: LB underperforms 95.83% of its industry peers.
- In the last couple of years the Profit Margin of LB has grown nicely.
- LB 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) | 12.76% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-14.99%
PM growth 5Y4.05%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- LB does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for LB has been increased compared to 1 year ago.
- LB has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for LB is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of LB is 63.04, which is on the high side as it means it would take LB, 63.04 years of fcf income to pay off all of its debts.
- LB has a worse Debt to FCF ratio (63.04) than 70.83% of its industry peers.
- A Debt/Equity ratio of 6.78 is on the high side and indicates that LB has dependencies on debt financing.
- LB has a worse Debt to Equity ratio (6.78) than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.78 | ||
| Debt/FCF | 63.04 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.86%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- LB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.64%.
- The Earnings Per Share has been growing slightly by 0.68% on average over the past years.
- Looking at the last year, LB shows a decrease in Revenue. The Revenue has decreased by -3.39% in the last year.
- Measured over the past years, LB shows a small growth in Revenue. The Revenue has been growing by 0.26% on average per year.
EPS 1Y (TTM)-15.64%
EPS 3Y-16.57%
EPS 5Y0.68%
EPS Q2Q%-17.98%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y-1.66%
Revenue growth 5Y0.26%
Sales Q2Q%-2.42%
3.2 Future
- Based on estimates for the next years, LB will show a small growth in Earnings Per Share. The EPS will grow by 6.28% on average per year.
- Based on estimates for the next years, LB will show a small growth in Revenue. The Revenue will grow by 1.90% on average per year.
EPS Next Y5.37%
EPS Next 2Y6.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.88%
Revenue Next 2Y1.9%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.21 indicates a correct valuation of LB.
- 66.67% of the companies in the same industry are cheaper than LB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, LB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.54, LB is valued correctly.
- 66.67% of the companies in the same industry are cheaper than LB, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of LB to the average of the S&P500 Index (25.98), we can say LB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LB indicates a somewhat cheap valuation: LB is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.46
PEG (5Y)19.55
EPS Next 2Y6.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- LB has a Yearly Dividend Yield of 4.71%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.05, LB pays a better dividend. On top of this LB pays more dividend than 95.83% of the companies listed in the same industry.
- LB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
5.2 History
- The dividend of LB decreases each year by -4.29%.
- LB has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of LB decreased recently.
Dividend Growth(5Y)-4.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 70.08% of the earnings are spent on dividend by LB. This is not a sustainable payout ratio.
DP70.08%
EPS Next 2Y6.28%
EPS Next 3YN/A
LAURENTIAN BANK OF CANADA / LB.CA FAQ
What is the ChartMill fundamental rating of LAURENTIAN BANK OF CANADA (LB.CA) stock?
ChartMill assigns a fundamental rating of 2 / 10 to LB.CA.
Can you provide the valuation status for LAURENTIAN BANK OF CANADA?
ChartMill assigns a valuation rating of 3 / 10 to LAURENTIAN BANK OF CANADA (LB.CA). This can be considered as Overvalued.
Can you provide the profitability details for LAURENTIAN BANK OF CANADA?
LAURENTIAN BANK OF CANADA (LB.CA) has a profitability rating of 2 / 10.
What is the financial health of LAURENTIAN BANK OF CANADA (LB.CA) stock?
The financial health rating of LAURENTIAN BANK OF CANADA (LB.CA) is 0 / 10.
What is the expected EPS growth for LAURENTIAN BANK OF CANADA (LB.CA) stock?
The Earnings per Share (EPS) of LAURENTIAN BANK OF CANADA (LB.CA) is expected to grow by 5.37% in the next year.