NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
Canada - TSX:NA - CA6330671034 - Common Stock
151.3 CAD
+1.53 (+1.02%)
Overall NA gets a fundamental rating of 3 out of 10. We evaluated NA against 26 industry peers in the Banks industry. Both the profitability and financial health of NA have multiple concerns. NA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NA had positive earnings in the past year.
In the past year NA had a positive cash flow from operations.
Each year in the past 5 years NA has been profitable.
Of the past 5 years NA 4 years had a positive operating cash flow.
1.2 Ratios
NA has a worse Return On Assets (0.68%) than 61.54% of its industry peers.
NA's Return On Equity of 11.23% is on the low side compared to the rest of the industry. NA is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 11.23% | ||
| 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
1.3 Margins
Looking at the Profit Margin, with a value of 28.35%, NA is in line with its industry, outperforming 46.15% of the companies in the same industry.
In the last couple of years the Profit Margin of NA has grown nicely.
NA 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) | 28.35% | ||
| 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
2. Health
2.1 Basic Checks
NA does not have a ROIC to compare to the WACC, probably because it is not profitable.
NA has more shares outstanding than it did 1 year ago.
NA has more shares outstanding than it did 5 years ago.
NA has a better debt/assets ratio than last year.
2.2 Solvency
NA has a debt to FCF ratio of 17.68. This is a negative value and a sign of low solvency as NA would need 17.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.68, NA is doing worse than 76.92% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that NA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.92, NA is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 17.68 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.91%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.71%.
Measured over the past years, NA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.31% on average per year.
The Revenue has grown by 19.69% in the past year. This is quite good.
NA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.93% yearly.
EPS 1Y (TTM)7.71%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%0%
Revenue 1Y (TTM)19.69%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%15.66%
3.2 Future
Based on estimates for the next years, NA will show a small growth in Earnings Per Share. The EPS will grow by 3.24% on average per year.
Based on estimates for the next years, NA will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.
EPS Next Y9.37%
EPS Next 2Y7.11%
EPS Next 3Y8.32%
EPS Next 5Y3.24%
Revenue Next Year19.13%
Revenue Next 2Y11.59%
Revenue Next 3Y9.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.70 indicates a correct valuation of NA.
Based on the Price/Earnings ratio, NA is valued more expensive than 80.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.49, NA is valued rather cheaply.
The Price/Forward Earnings ratio is 12.69, which indicates a correct valuation of NA.
Based on the Price/Forward Earnings ratio, NA is valued more expensive than 88.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. NA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.69 |
4.2 Price Multiples
80.77% of the companies in the same industry are cheaper than NA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.46
PEG (5Y)1.33
EPS Next 2Y7.11%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
NA has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, NA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.43, NA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
On average, the dividend of NA grows each year by 10.25%, which is quite nice.
NA has paid a dividend for at least 10 years, which is a reliable track record.
NA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.25%
Div Incr Years15
Div Non Decr Years31
5.3 Sustainability
49.67% of the earnings are spent on dividend by NA. This is a bit on the high side, but may be sustainable.
The dividend of NA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y7.11%
EPS Next 3Y8.32%
TSX:NA (10/14/2025, 7:00:00 PM)
151.3
+1.53 (+1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners37.87%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap59.32B
Analysts74.29
Price Target154.7 (2.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend4.83
Dividend Growth(5Y)10.25%
DP49.67%
Div Incr Years15
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.9%
Min EPS beat(2)-3.39%
Max EPS beat(2)15.18%
EPS beat(4)2
Avg EPS beat(4)4.18%
Min EPS beat(4)-3.39%
Max EPS beat(4)15.18%
EPS beat(8)6
Avg EPS beat(8)4.17%
EPS beat(12)7
Avg EPS beat(12)1.21%
EPS beat(16)9
Avg EPS beat(16)2.08%
Revenue beat(2)1
Avg Revenue beat(2)1.73%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)7.89%
Revenue beat(4)2
Avg Revenue beat(4)1.32%
Min Revenue beat(4)-4.43%
Max Revenue beat(4)7.89%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)5
Avg Revenue beat(12)-1.22%
Revenue beat(16)6
Avg Revenue beat(16)-1.46%
PT rev (1m)0.33%
PT rev (3m)8.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.88%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.69 | ||
| P/S | 4.49 | ||
| P/FCF | 16.33 | ||
| P/OCF | 15.29 | ||
| P/B | 1.78 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.04
EY7.3%
EPS(NY)11.92
Fwd EY7.88%
FCF(TTM)9.27
FCFY6.12%
OCF(TTM)9.9
OCFY6.54%
SpS33.73
BVpS85.12
TBVpS72.59
PEG (NY)1.46
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 11.23% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 28.35% | ||
| GM | N/A | ||
| FCFM | 27.47% |
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-Score5
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 17.68 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 43.59% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 96.91% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.91%
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)7.71%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%0%
EPS Next Y9.37%
EPS Next 2Y7.11%
EPS Next 3Y8.32%
EPS Next 5Y3.24%
Revenue 1Y (TTM)19.69%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%15.66%
Revenue Next Year19.13%
Revenue Next 2Y11.59%
Revenue Next 3Y9.18%
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 1Y118.33%
FCF growth 3Y-10.63%
FCF growth 5Y-12.35%
OCF growth 1Y93.76%
OCF growth 3Y-8.7%
OCF growth 5Y-10.89%