NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NA-PR-E - CA6330671943
25.91 CAD
+0.11 (+0.43%)
We assign a fundamental rating of 4 out of 10 to NA-PR-E. NA-PR-E was compared to 24 industry peers in the Banks industry. While NA-PR-E is still in line with the averages on profitability rating, there are concerns on its financial health. NA-PR-E is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year NA-PR-E was profitable.
- In the past year NA-PR-E had a positive cash flow from operations.
- NA-PR-E had positive earnings in each of the past 5 years.
- NA-PR-E had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- NA-PR-E has a better Return On Assets (0.67%) than 62.50% of its industry peers.
- Looking at the Return On Equity, with a value of 11.41%, NA-PR-E is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 11.41% | ||
| ROIC | N/A |
ROA(3y)0.73%
ROA(5y)0.77%
ROE(3y)13.03%
ROE(5y)14.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 27.55%, NA-PR-E is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- NA-PR-E's Profit Margin has improved in the last couple of years.
- The Operating Margin and Gross Margin are not available for NA-PR-E so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.55% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.72%
PM growth 5Y2.58%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- NA-PR-E does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for NA-PR-E has been increased compared to 1 year ago.
- The number of shares outstanding for NA-PR-E has been increased compared to 5 years ago.
- Compared to 1 year ago, NA-PR-E has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of NA-PR-E is 13.40, which is on the high side as it means it would take NA-PR-E, 13.40 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 13.40, NA-PR-E is doing good in the industry, outperforming 70.83% of the companies in the same industry.
- A Debt/Equity ratio of 1.74 is on the high side and indicates that NA-PR-E has dependencies on debt financing.
- NA-PR-E has a better Debt to Equity ratio (1.74) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC22.47%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- NA-PR-E shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.57%, which is quite good.
- NA-PR-E shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.23% yearly.
- The Revenue has grown by 22.63% in the past year. This is a very strong growth!
- The Revenue has been growing by 12.02% on average over the past years. This is quite good.
EPS 1Y (TTM)8.57%
EPS 3Y5.41%
EPS 5Y13.23%
EPS Q2Q%9.3%
Revenue 1Y (TTM)22.63%
Revenue growth 3Y13.14%
Revenue growth 5Y12.02%
Sales Q2Q%23.72%
3.2 Future
- NA-PR-E is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
- The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y10.19%
EPS Next 2Y11.45%
EPS Next 3Y10.07%
EPS Next 5Y5.53%
Revenue Next Year8.92%
Revenue Next 2Y7.6%
Revenue Next 3Y5.57%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 2.30 indicates a rather cheap valuation of NA-PR-E.
- 91.67% of the companies in the same industry are more expensive than NA-PR-E, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of NA-PR-E to the average of the S&P500 Index (27.21), we can say NA-PR-E is valued rather cheaply.
- With a Price/Forward Earnings ratio of 2.08, the valuation of NA-PR-E can be described as very cheap.
- NA-PR-E's Price/Forward Earnings ratio is rather cheap when compared to the industry. NA-PR-E is cheaper than 91.67% of the companies in the same industry.
- NA-PR-E's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.3 | ||
| Fwd PE | 2.08 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NA-PR-E indicates a rather cheap valuation: NA-PR-E is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- NA-PR-E's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.23
PEG (5Y)0.17
EPS Next 2Y11.45%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.99%, NA-PR-E has a reasonable but not impressive dividend return.
- NA-PR-E's Dividend Yield is comparable with the industry average which is at 3.05.
- Compared to an average S&P500 Dividend Yield of 1.81, NA-PR-E pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
- On average, the dividend of NA-PR-E grows each year by 6.57%, which is quite nice.
- NA-PR-E has been paying a dividend for over 5 years, so it has already some track record.
- NA-PR-E has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.57%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
- NA-PR-E pays out 50.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of NA-PR-E is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y11.45%
EPS Next 3Y10.07%
NATIONAL BANK OF CANADA - NACN 5.818 PERP / NA-PR-E.CA FAQ
What is the ChartMill fundamental rating of NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NA-PR-E.CA.
What is the valuation status of NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA). This can be considered as Undervalued.
Can you provide the profitability details for NATIONAL BANK OF CANADA - NACN 5.818 PERP?
NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) has a profitability rating of 4 / 10.
What is the financial health of NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) stock?
The financial health rating of NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) is 2 / 10.
Can you provide the expected EPS growth for NA-PR-E stock?
The Earnings per Share (EPS) of NATIONAL BANK OF CANADA - NACN 5.818 PERP (NA-PR-E.CA) is expected to grow by 10.19% in the next year.