NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
TSX:NA - CA6330671034 - Common Stock
147.37 CAD
+1.49 (+1.02%)
Taking everything into account, NA scores 3 out of 10 in our fundamental rating. NA was compared to 26 industry peers in the Banks industry. Both the profitability and financial health of NA have multiple concerns. NA is valied quite expensively at the moment, while it does show a decent growth rate.
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.
NA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.68%, NA is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
NA has a worse Return On Equity (11.23%) than 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
NA has a Profit Margin of 28.35%. This is comparable to the rest of the industry: NA outperforms 46.15% 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) | 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.
Compared to 5 years ago, NA has more shares outstanding
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.
NA has a worse Debt to FCF ratio (17.68) than 76.92% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that NA has dependencies on debt financing.
NA has a Debt to Equity ratio of 1.92. This is in the better half of the industry: NA outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 17.68 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.24%
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 been growing slightly by 7.71% 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.
NA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.69%.
Measured over the past years, NA shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
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
The Earnings Per Share is expected to grow by 1.35% on average over the next years.
Based on estimates for the next years, NA will show a quite strong growth in Revenue. The Revenue will grow by 9.89% on average per year.
EPS Next Y9.8%
EPS Next 2Y7.51%
EPS Next 3Y8.54%
EPS Next 5Y1.35%
Revenue Next Year19.77%
Revenue Next 2Y12.14%
Revenue Next 3Y9.89%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.35, NA is valued correctly.
Based on the Price/Earnings ratio, NA is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of NA to the average of the S&P500 Index (27.07), we can say NA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.27, the valuation of NA can be described as correct.
NA's Price/Forward Earnings ratio is rather expensive when compared to the industry. NA is more expensive than 88.46% of the companies in the same industry.
NA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NA is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.9 | ||
| 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)1.36
PEG (5Y)1.29
EPS Next 2Y7.51%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
NA has a Yearly Dividend Yield of 3.27%. Purely for dividend investing, there may be better candidates out there.
NA's Dividend Yield is slightly below the industry average, which is at 3.58.
NA's Dividend Yield is a higher than the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
On average, the dividend of NA grows each year by 10.25%, 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)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.
NA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.67%
EPS Next 2Y7.51%
EPS Next 3Y8.54%
TSX:NA (9/9/2025, 7:00:00 PM)
147.37
+1.49 (+1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners36.35%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap57.75B
Analysts74.29
Price Target154.19 (4.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)7.98%
PT rev (3m)9.6%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)5.14%
EPS NY rev (3m)5.14%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)6.45%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)4.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.27 | ||
| P/S | 4.37 | ||
| P/FCF | 15.9 | ||
| P/OCF | 14.88 | ||
| P/B | 1.73 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.04
EY7.49%
EPS(NY)12.01
Fwd EY8.15%
FCF(TTM)9.27
FCFY6.29%
OCF(TTM)9.9
OCFY6.72%
SpS33.75
BVpS85.17
TBVpS72.63
PEG (NY)1.36
PEG (5Y)1.29
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
WACC17.24%
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 Y9.8%
EPS Next 2Y7.51%
EPS Next 3Y8.54%
EPS Next 5Y1.35%
Revenue 1Y (TTM)19.69%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%15.66%
Revenue Next Year19.77%
Revenue Next 2Y12.14%
Revenue Next 3Y9.89%
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%