NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NA - CA6330671034 - Common Stock
165.87 CAD
-0.07 (-0.04%)
Overall NA gets a fundamental rating of 3 out of 10. We evaluated NA against 24 industry peers in the Banks industry. NA may be in some trouble as it scores bad on both profitability and health. NA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NA was profitable.
- In the past year NA had a positive cash flow from operations.
- 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 Return On Assets value of 0.67%, NA perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
- NA has a Return On Equity (11.41%) which is comparable to the rest of the 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
- NA has a Profit Margin (27.55%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of NA has grown nicely.
- 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) | 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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for NA has been increased compared to 1 year ago.
- The number of shares outstanding for NA has been increased compared to 5 years ago.
- Compared to 1 year ago, NA has an improved debt to assets ratio.
2.2 Solvency
- NA has a debt to FCF ratio of 13.40. This is a negative value and a sign of low solvency as NA would need 13.40 years to pay back of all of its debts.
- NA has a Debt to FCF ratio (13.40) which is in line with its industry peers.
- A Debt/Equity ratio of 1.74 is on the high side and indicates that NA has dependencies on debt financing.
- NA has a Debt to Equity ratio of 1.74. This is in the better half of the industry: NA outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.8%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- NA 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 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.23% yearly.
- Looking at the last year, NA shows a very strong growth in Revenue. The Revenue has grown by 22.63%.
- Measured over the past years, NA shows a quite strong growth in Revenue. The Revenue has been growing by 12.02% on average per year.
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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
- NA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.70 indicates a correct valuation of NA.
- NA's Price/Earnings ratio is a bit more expensive when compared to the industry. NA is more expensive than 75.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. NA is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 13.34, which indicates a correct valuation of NA.
- Based on the Price/Forward Earnings ratio, NA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
- NA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.44
PEG (5Y)1.11
EPS Next 2Y11.45%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.99%, NA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.33, NA is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, NA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
- On average, the dividend of NA grows each year by 6.57%, which is quite nice.
- NA has been paying a dividend for at least 10 years, so it has a reliable track record.
- NA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.57%
Div Incr Years15
Div Non Decr Years31
5.3 Sustainability
- 50.67% 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.
DP50.67%
EPS Next 2Y11.45%
EPS Next 3Y10.07%
NATIONAL BANK OF CANADA / NA.CA FAQ
Can you provide the ChartMill fundamental rating for NATIONAL BANK OF CANADA?
ChartMill assigns a fundamental rating of 3 / 10 to NA.CA.
Can you provide the valuation status for NATIONAL BANK OF CANADA?
ChartMill assigns a valuation rating of 2 / 10 to NATIONAL BANK OF CANADA (NA.CA). This can be considered as Overvalued.
What is the profitability of NA stock?
NATIONAL BANK OF CANADA (NA.CA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for NATIONAL BANK OF CANADA?
The Earnings per Share (EPS) of NATIONAL BANK OF CANADA (NA.CA) is expected to grow by 10.19% in the next year.
How sustainable is the dividend of NATIONAL BANK OF CANADA (NA.CA) stock?
The dividend rating of NATIONAL BANK OF CANADA (NA.CA) is 6 / 10 and the dividend payout ratio is 50.67%.