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NATIONAL BANK OF CANADA - NACN 3.839 PERP (NA-PR-W.CA) Stock Fundamental Analysis

TSX:NA-PR-W - Toronto Stock Exchange - CA6330672859 - Currency: CAD

24.98  +0.01 (+0.04%)

Fundamental Rating

5

NA-PR-W gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Banks industry. NA-PR-W has a medium profitability rating, but doesn't score so well on its financial health evaluation. NA-PR-W may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

NA-PR-W had positive earnings in the past year.
In the past year NA-PR-W had a positive cash flow from operations.
NA-PR-W had positive earnings in each of the past 5 years.
NA-PR-W had a positive operating cash flow in 4 of the past 5 years.
NA-PR-W.CA Yearly Net Income VS EBIT VS OCF VS FCFNA-PR-W.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

NA-PR-W has a Return On Assets of 0.79%. This is amongst the best in the industry. NA-PR-W outperforms 97.14% of its industry peers.
NA-PR-W's Return On Equity of 14.34% is amongst the best of the industry. NA-PR-W outperforms 100.00% of its industry peers.
Industry RankSector Rank
ROA 0.79%
ROE 14.34%
ROIC N/A
ROA(3y)0.78%
ROA(5y)0.76%
ROE(3y)14.26%
ROE(5y)14.14%
ROIC(3y)N/A
ROIC(5y)N/A
NA-PR-W.CA Yearly ROA, ROE, ROICNA-PR-W.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

NA-PR-W's Profit Margin of 32.13% is amongst the best of the industry. NA-PR-W outperforms 97.14% of its industry peers.
NA-PR-W's Profit Margin has improved in the last couple of years.
NA-PR-W 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) 32.13%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.07%
PM growth 5Y2.22%
GM growth 3YN/A
GM growth 5YN/A
NA-PR-W.CA Yearly Profit, Operating, Gross MarginsNA-PR-W.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

2

2. Health

2.1 Basic Checks

NA-PR-W does not have a ROIC to compare to the WACC, probably because it is not profitable.
NA-PR-W has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NA-PR-W has more shares outstanding
Compared to 1 year ago, NA-PR-W has an improved debt to assets ratio.
NA-PR-W.CA Yearly Shares OutstandingNA-PR-W.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
NA-PR-W.CA Yearly Total Debt VS Total AssetsNA-PR-W.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

2.2 Solvency

NA-PR-W has a debt to FCF ratio of 12.12. This is a negative value and a sign of low solvency as NA-PR-W would need 12.12 years to pay back of all of its debts.
The Debt to FCF ratio of NA-PR-W (12.12) is comparable to the rest of the industry.
NA-PR-W has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.99, NA-PR-W belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 12.12
Altman-Z N/A
ROIC/WACCN/A
WACC23.42%
NA-PR-W.CA Yearly LT Debt VS Equity VS FCFNA-PR-W.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
NA-PR-W.CA Yearly Current Assets VS Current LiabilitesNA-PR-W.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.34% over the past year.
The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
NA-PR-W shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.09%.
The Revenue has been growing by 8.93% on average over the past years. This is quite good.
EPS 1Y (TTM)8.34%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%5.74%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%8.34%

3.2 Future

NA-PR-W is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.13% yearly.
The Revenue is expected to grow by 11.29% on average over the next years. This is quite good.
EPS Next Y6.79%
EPS Next 2Y8.45%
EPS Next 3Y7.2%
EPS Next 5Y7.13%
Revenue Next Year9.82%
Revenue Next 2Y11.29%
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 decreasing.
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.
NA-PR-W.CA Yearly Revenue VS EstimatesNA-PR-W.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B
NA-PR-W.CA Yearly EPS VS EstimatesNA-PR-W.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 2.40 indicates a rather cheap valuation of NA-PR-W.
Based on the Price/Earnings ratio, NA-PR-W is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. NA-PR-W is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 2.25 indicates a rather cheap valuation of NA-PR-W.
Based on the Price/Forward Earnings ratio, NA-PR-W is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NA-PR-W to the average of the S&P500 Index (94.77), we can say NA-PR-W is valued rather cheaply.
Industry RankSector Rank
PE 2.4
Fwd PE 2.25
NA-PR-W.CA Price Earnings VS Forward Price EarningsNA-PR-W.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of NA-PR-W indicates a somewhat cheap valuation: NA-PR-W is cheaper than 62.86% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 2.02
EV/EBITDA N/A
NA-PR-W.CA Per share dataNA-PR-W.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

NA-PR-W's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.35
PEG (5Y)0.23
EPS Next 2Y8.45%
EPS Next 3Y7.2%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.48%, NA-PR-W has a reasonable but not impressive dividend return.
NA-PR-W's Dividend Yield is comparable with the industry average which is at 3.91.
NA-PR-W's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.48%

5.2 History

The dividend of NA-PR-W is nicely growing with an annual growth rate of 10.25%!
NA-PR-W has been paying a dividend for at least 10 years, so it has a reliable track record.
NA-PR-W has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.25%
Div Incr Years0
Div Non Decr Years3
NA-PR-W.CA Yearly Dividends per shareNA-PR-W.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

44.77% of the earnings are spent on dividend by NA-PR-W. This is a bit on the high side, but may be sustainable.
NA-PR-W's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.77%
EPS Next 2Y8.45%
EPS Next 3Y7.2%
NA-PR-W.CA Yearly Income VS Free CF VS DividendNA-PR-W.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B
NA-PR-W.CA Dividend Payout.NA-PR-W.CA Dividend Payout, showing the Payout Ratio.NA-PR-W.CA Dividend Payout.PayoutRetained Earnings

NATIONAL BANK OF CANADA - NACN 3.839 PERP

TSX:NA-PR-W (2/7/2025, 7:00:00 PM)

24.98

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)12-04 2024-12-04/bmo
Earnings (Next)N/A N/A
Inst Owners34.92%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap8.51B
Analysts76.19
Price Target27.89 (11.65%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.48%
Yearly Dividend4.83
Dividend Growth(5Y)10.25%
DP44.77%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-06 2025-01-06 (0.2399375)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.07%
Min EPS beat(2)-2.42%
Max EPS beat(2)4.56%
EPS beat(4)3
Avg EPS beat(4)2.38%
Min EPS beat(4)-2.42%
Max EPS beat(4)6.72%
EPS beat(8)5
Avg EPS beat(8)0.68%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)10
Avg EPS beat(16)3.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)1.15%
Revenue beat(8)3
Avg Revenue beat(8)-1.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.91%
Revenue beat(16)5
Avg Revenue beat(16)-1.86%
PT rev (1m)2.57%
PT rev (3m)21.25%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)6.02%
EPS NY rev (1m)0.19%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)2.79%
Revenue NQ rev (3m)3.7%
Revenue NY rev (1m)4.7%
Revenue NY rev (3m)4.28%
Valuation
Industry RankSector Rank
PE 2.4
Fwd PE 2.25
P/S 0.75
P/FCF 2.02
P/OCF 1.83
P/B 0.33
P/tB 0.37
EV/EBITDA N/A
EPS(TTM)10.39
EY41.59%
EPS(NY)11.1
Fwd EY44.42%
FCF(TTM)12.36
FCFY49.48%
OCF(TTM)13.66
OCFY54.68%
SpS33.47
BVpS75.02
TBVpS66.93
PEG (NY)0.35
PEG (5Y)0.23
Profitability
Industry RankSector Rank
ROA 0.79%
ROE 14.34%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 32.13%
GM N/A
FCFM 36.92%
ROA(3y)0.78%
ROA(5y)0.76%
ROE(3y)14.26%
ROE(5y)14.14%
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-2.07%
PM growth 5Y2.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.02
Health
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 12.12
Debt/EBITDA N/A
Cap/Depr 86.19%
Cap/Sales 3.89%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 114.91%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC23.42%
ROIC/WACCN/A
Cap/Depr(3y)71.63%
Cap/Depr(5y)60.13%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.34%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%5.74%
EPS Next Y6.79%
EPS Next 2Y8.45%
EPS Next 3Y7.2%
EPS Next 5Y7.13%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%8.34%
Revenue Next Year9.82%
Revenue Next 2Y11.29%
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 1Y-12.57%
FCF growth 3Y-10.63%
FCF growth 5Y-12.35%
OCF growth 1Y-9.95%
OCF growth 3Y-8.7%
OCF growth 5Y-10.89%