NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NA - CA6330671034 - Common Stock
170.76 CAD
-1.54 (-0.89%)
Taking everything into account, NA scores 3 out of 10 in our fundamental rating. NA was compared to 24 industry peers in the Banks industry. NA has a bad profitability rating. Also its financial health evaluation is rather negative. NA is valied quite expensively at the moment, while 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 Return On Assets of 0.67%. This is in the lower half of the industry: NA underperforms 60.00% of its industry peers.
With a Return On Equity value of 11.41%, NA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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 of 27.55%. This is in the lower half of the industry: NA underperforms 60.00% of its industry peers.
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) | 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.
Compared to 5 years ago, NA has more shares outstanding
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's Debt to FCF ratio of 13.40 is in line compared to the rest of the industry. NA outperforms 44.00% of 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's Debt to Equity ratio of 1.74 is fine compared to the rest of the industry. NA outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.55%
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 8.57% over the past year.
The Earnings Per Share has been growing by 13.23% on average over the past years. This is quite good.
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
Based on estimates for the next years, NA will show a small growth in Earnings Per Share. The EPS will grow by 2.13% on average per year.
Based on estimates for the next years, NA will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
EPS Next Y6.67%
EPS Next 2Y9.17%
EPS Next 3Y0.67%
EPS Next 5Y2.13%
Revenue Next Year4.81%
Revenue Next 2Y4.77%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 15.14, NA is valued correctly.
Based on the Price/Earnings ratio, NA is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
NA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.19, the valuation of NA can be described as correct.
Based on the Price/Forward Earnings ratio, NA is valued expensively inside the industry as 92.00% of the companies are valued cheaper.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, NA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
68.00% 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 | 15.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.27
PEG (5Y)1.14
EPS Next 2Y9.17%
EPS Next 3Y0.67%
5. Dividend
5.1 Amount
NA has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.19, NA's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than NA!
Compared to an average S&P500 Dividend Yield of 2.31, NA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of NA is nicely growing with an annual growth rate of 10.25%!
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
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 2Y9.17%
EPS Next 3Y0.67%
TSX:NA (12/5/2025, 7:00:00 PM)
170.76
-1.54 (-0.89%)
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 Cap66.76B
Revenue(TTM)13.98B
Net Income(TTM)3.85B
Analysts74.55
Price Target174.89 (2.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend4.83
Dividend Growth(5Y)10.25%
DP50.67%
Div Incr Years15
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.5%
Min EPS beat(2)-3.39%
Max EPS beat(2)4.39%
EPS beat(4)3
Avg EPS beat(4)5.88%
Min EPS beat(4)-3.39%
Max EPS beat(4)15.18%
EPS beat(8)6
Avg EPS beat(8)4.13%
EPS beat(12)8
Avg EPS beat(12)2.41%
EPS beat(16)10
Avg EPS beat(16)2.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)3.96%
Revenue beat(4)3
Avg Revenue beat(4)2.65%
Min Revenue beat(4)-4.43%
Max Revenue beat(4)7.89%
Revenue beat(8)5
Avg Revenue beat(8)1.26%
Revenue beat(12)6
Avg Revenue beat(12)-0.12%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)10.98%
PT rev (3m)13.43%
EPS NQ rev (1m)3.27%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)3.78%
Revenue NQ rev (3m)3.78%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 14.19 | ||
| P/S | 4.78 | ||
| P/FCF | 15.17 | ||
| P/OCF | 14.4 | ||
| P/B | 1.98 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.28
EY6.61%
EPS(NY)12.03
Fwd EY7.05%
FCF(TTM)11.26
FCFY6.59%
OCF(TTM)11.86
OCFY6.94%
SpS35.76
BVpS86.38
TBVpS73.97
PEG (NY)2.27
PEG (5Y)1.14
Graham Number148.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 11.41% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.55% | ||
| GM | N/A | ||
| FCFM | 31.49% |
ROA(3y)0.73%
ROA(5y)0.77%
ROE(3y)13.03%
ROE(5y)14.07%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score5
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 13.4 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 35.63% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 114.28% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC15.55%
ROIC/WACCN/A
Cap/Depr(3y)63%
Cap/Depr(5y)59.13%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.91%
Profit Quality(3y)127.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.57%
EPS 3Y5.41%
EPS 5Y13.23%
EPS Q2Q%9.3%
EPS Next Y6.67%
EPS Next 2Y9.17%
EPS Next 3Y0.67%
EPS Next 5Y2.13%
Revenue 1Y (TTM)22.63%
Revenue growth 3Y13.14%
Revenue growth 5Y12.02%
Sales Q2Q%23.72%
Revenue Next Year4.81%
Revenue Next 2Y4.77%
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 1Y4.59%
FCF growth 3YN/A
FCF growth 5Y-25.97%
OCF growth 1Y-0.37%
OCF growth 3YN/A
OCF growth 5Y-25.34%
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.
What is the valuation status for NA stock?
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.
Can you provide the PE and PB ratios for NA stock?
The Price/Earnings (PE) ratio for NATIONAL BANK OF CANADA (NA.CA) is 15.14 and the Price/Book (PB) ratio is 1.98.
What is the expected EPS growth for NATIONAL BANK OF CANADA (NA.CA) stock?
The Earnings per Share (EPS) of NATIONAL BANK OF CANADA (NA.CA) is expected to grow by 6.67% in the next year.