NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NA - CA6330671034 - Common Stock
175.22 CAD
-0.88 (-0.5%)
NA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Banks industry. NA has a bad profitability rating. Also its financial health evaluation is rather negative. NA is quite expensive at the moment. It does show a decent growth rate. Finally NA also has an excellent dividend rating.
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
NA's Return On Assets of 0.67% is in line compared to the rest of the industry. NA outperforms 45.45% of its industry peers.
NA has a Return On Equity (11.41%) which is in line with its industry peers.
| 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's Profit Margin of 27.55% is in line compared to the rest of the industry. NA outperforms 45.45% of its industry peers.
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.
NA has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of NA is 13.40, which is on the high side as it means it would take NA, 13.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.40, NA is in line with its industry, outperforming 50.00% of the companies in the same industry.
NA has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
NA has a Debt to Equity ratio of 1.74. This is in the better half of the industry: NA outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.47%
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
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 5.57% on average per year.
EPS Next Y10.19%
EPS Next 2Y11.45%
EPS Next 3Y10.07%
EPS Next 5Y2.13%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.53, which indicates a correct valuation of NA.
Based on the Price/Earnings ratio, NA is valued more expensive than 86.36% of the companies in the same industry.
NA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.10, which indicates a correct valuation of NA.
90.91% of the companies in the same industry are cheaper than NA, based on the Price/Forward Earnings ratio.
NA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NA is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| 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)1.52
PEG (5Y)1.17
EPS Next 2Y11.45%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.05%, NA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.14, NA pays a better dividend. On top of this NA pays more dividend than 81.82% of the companies listed in the same industry.
NA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.05% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
NA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y11.45%
EPS Next 3Y10.07%
TSX:NA (12/29/2025, 7:00:00 PM)
175.22
-0.88 (-0.5%)
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 Cap68.50B
Revenue(TTM)13.98B
Net Income(TTM)3.85B
Analysts74.55
Price Target176.7 (0.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.05% |
Yearly Dividend5.33
Dividend Growth(5Y)6.57%
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)10.28%
PT rev (3m)14.22%
EPS NQ rev (1m)4.81%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)4%
EPS NY rev (3m)4.28%
Revenue NQ rev (1m)4.25%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)4.49%
Revenue NY rev (3m)4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 14.1 | ||
| P/S | 4.9 | ||
| P/FCF | 15.56 | ||
| P/OCF | 14.78 | ||
| P/B | 2.03 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.28
EY6.44%
EPS(NY)12.43
Fwd EY7.09%
FCF(TTM)11.26
FCFY6.43%
OCF(TTM)11.86
OCFY6.77%
SpS35.76
BVpS86.38
TBVpS73.97
PEG (NY)1.52
PEG (5Y)1.17
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
WACC15.47%
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 Y10.19%
EPS Next 2Y11.45%
EPS Next 3Y10.07%
EPS Next 5Y2.13%
Revenue 1Y (TTM)22.63%
Revenue growth 3Y13.14%
Revenue growth 5Y12.02%
Sales Q2Q%23.72%
Revenue Next Year8.92%
Revenue Next 2Y7.6%
Revenue Next 3Y5.57%
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 15.53 and the Price/Book (PB) ratio is 2.03.
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 10.19% in the next year.