NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
TSX:NA - Toronto Stock Exchange - CA6330671034 - Common Stock - Currency: CAD
Overall NA gets a fundamental rating of 4 out of 10. We evaluated NA against 30 industry peers in the Banks industry. There are concerns on the financial health of NA while its profitability can be described as average. While showing a medium growth rate, NA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NA was profitable.
NA had a positive operating cash flow in the past year.
In the past 5 years NA has always been profitable.
Of the past 5 years NA 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.77%, NA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
NA has a better Return On Equity (14.15%) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 14.15% | ||
| 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 31.47%, NA belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
NA's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for NA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 31.47% | ||
| 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
The Debt to FCF ratio of NA is 17.77, which is on the high side as it means it would take NA, 17.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.77, NA is doing worse than 93.33% of the companies in the same industry.
A Debt/Equity ratio of 1.97 is on the high side and indicates that NA has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.97, NA is doing good in the industry, outperforming 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 17.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.73%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.54% over the past year.
NA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.31% yearly.
Looking at the last year, NA shows a quite strong growth in Revenue. The Revenue has grown by 15.29% in the last year.
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)11.54%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%13.13%
Revenue 1Y (TTM)15.29%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%14.54%
3.2 Future
NA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.14% yearly.
The Revenue is expected to grow by 8.58% on average over the next years. This is quite good.
EPS Next Y4.43%
EPS Next 2Y7.22%
EPS Next 3Y6.8%
EPS Next 5Y3.14%
Revenue Next Year14.86%
Revenue Next 2Y10.78%
Revenue Next 3Y8.58%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NA is valuated reasonably with a Price/Earnings ratio of 11.37.
NA's Price/Earnings ratio is rather expensive when compared to the industry. NA is more expensive than 86.67% of the companies in the same industry.
NA is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.21 indicates a reasonable valuation of NA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NA indicates a rather expensive valuation: NA more expensive than 93.33% of the companies listed in the same industry.
NA is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NA is valued more expensive than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.57
PEG (5Y)1.1
EPS Next 2Y7.22%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, NA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.45, NA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, NA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.25%
Div Incr Years15
Div Non Decr Years31
5.3 Sustainability
NA pays out 44.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
NA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.78%
EPS Next 2Y7.22%
EPS Next 3Y6.8%
TSX:NA (5/2/2025, 7:00:00 PM)
122
+0.91 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners32.19%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap47.74B
Analysts71.82
Price Target135.08 (10.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend4.83
Dividend Growth(5Y)10.25%
DP44.78%
Div Incr Years15
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.45%
Min EPS beat(2)-2.42%
Max EPS beat(2)7.33%
EPS beat(4)3
Avg EPS beat(4)2.53%
Min EPS beat(4)-2.42%
Max EPS beat(4)7.33%
EPS beat(8)5
Avg EPS beat(8)0.98%
EPS beat(12)7
Avg EPS beat(12)0.86%
EPS beat(16)10
Avg EPS beat(16)2.41%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)3.19%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.71%
Revenue beat(12)4
Avg Revenue beat(12)-1.94%
Revenue beat(16)5
Avg Revenue beat(16)-1.88%
PT rev (1m)-2.88%
PT rev (3m)-5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.78%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 10.21 | ||
| P/S | 4.02 | ||
| P/FCF | 16.3 | ||
| P/OCF | 14.96 | ||
| P/B | 1.81 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.73
EY8.8%
EPS(NY)11.94
Fwd EY9.79%
FCF(TTM)7.48
FCFY6.13%
OCF(TTM)8.16
OCFY6.68%
SpS30.34
BVpS67.46
TBVpS60.42
PEG (NY)2.57
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 14.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 31.47% | ||
| GM | N/A | ||
| FCFM | 24.66% |
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-Score6
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 17.77 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 49.91% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 78.37% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC17.73%
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)11.54%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%13.13%
EPS Next Y4.43%
EPS Next 2Y7.22%
EPS Next 3Y6.8%
EPS Next 5Y3.14%
Revenue 1Y (TTM)15.29%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%14.54%
Revenue Next Year14.86%
Revenue Next 2Y10.78%
Revenue Next 3Y8.58%
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-44.82%
FCF growth 3Y-10.63%
FCF growth 5Y-12.35%
OCF growth 1Y-43.18%
OCF growth 3Y-8.7%
OCF growth 5Y-10.89%