VERSABANK (VBNK.CA) Stock Fundamental Analysis
TSX:VBNK - Toronto Stock Exchange - CA92512J1066 - Common Stock - Currency: CAD
Taking everything into account, VBNK scores 4 out of 10 in our fundamental rating. VBNK was compared to 30 industry peers in the Banks industry. VBNK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VBNK is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
VBNK had positive earnings in the past year.
VBNK had a positive operating cash flow in the past year.
In the past 5 years VBNK has always been profitable.
In multiple years VBNK reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.69%, VBNK perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
VBNK has a worse Return On Equity (6.61%) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 6.61% | ||
| ROIC | N/A |
ROA(3y)0.81%
ROA(5y)0.84%
ROE(3y)8.94%
ROE(5y)7.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VBNK's Profit Margin of 31.15% is amongst the best of the industry. VBNK outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of VBNK has remained more or less at the same level.
VBNK 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) | 31.15% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y2.95%
PM growth 5Y0.79%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
VBNK does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VBNK remains at a similar level compared to 1 year ago.
The number of shares outstanding for VBNK has been increased compared to 5 years ago.
The debt/assets ratio for VBNK has been reduced compared to a year ago.
2.2 Solvency
VBNK has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
VBNK's Debt to FCF ratio of 0.55 is amongst the best of the industry. VBNK outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that VBNK is not too dependend on debt financing.
VBNK's Debt to Equity ratio of 0.21 is amongst the best of the industry. VBNK outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC26.17%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for VBNK have decreased strongly by -24.56% in the last year.
The Earnings Per Share has been growing by 11.92% on average over the past years. This is quite good.
VBNK shows a decrease in Revenue. In the last year, the revenue decreased by -0.86%.
The Revenue has been growing by 15.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-24.56%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-41.67%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%-3.18%
3.2 Future
The Earnings Per Share is expected to grow by 34.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 30.83% on average over the next years. This is a very strong growth
EPS Next Y0.29%
EPS Next 2Y34.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year19.1%
Revenue Next 2Y30.83%
Revenue Next 3YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.14 indicates a correct valuation of VBNK.
Based on the Price/Earnings ratio, VBNK is valued more expensive than 90.00% of the companies in the same industry.
VBNK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.68.
The Price/Forward Earnings ratio is 5.80, which indicates a rather cheap valuation of VBNK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VBNK indicates a slightly more expensive valuation: VBNK is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, VBNK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VBNK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.58 | ||
| 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.
A more expensive valuation may be justified as VBNK's earnings are expected to grow with 34.56% in the coming years.
PEG (NY)42.06
PEG (5Y)1.02
EPS Next 2Y34.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VBNK has a yearly dividend return of 0.65%, which is pretty low.
With a Dividend Yield of 0.65, VBNK pays less dividend than the industry average, which is at 4.20. 96.67% of the companies listed in the same industry pay a better dividend than VBNK!
With a Dividend Yield of 0.65, VBNK pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of VBNK decreases each year by -4.67%.
VBNK has been paying a dividend for over 5 years, so it has already some track record.
As VBNK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-4.67%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
10.17% of the earnings are spent on dividend by VBNK. This is a low number and sustainable payout ratio.
DP10.17%
EPS Next 2Y34.56%
EPS Next 3YN/A
TSX:VBNK (5/16/2025, 7:00:00 PM)
15.66
+0.19 (+1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners34.6%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap509.26M
Analysts82.22
Price Target21.93 (40.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend0.14
Dividend Growth(5Y)-4.67%
DP10.17%
Div Incr Years1
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.78%
Min EPS beat(2)-52.56%
Max EPS beat(2)-29.01%
EPS beat(4)0
Avg EPS beat(4)-26.83%
Min EPS beat(4)-52.56%
Max EPS beat(4)-0.86%
EPS beat(8)3
Avg EPS beat(8)-12.05%
EPS beat(12)4
Avg EPS beat(12)-9.58%
EPS beat(16)4
Avg EPS beat(16)-9.68%
Revenue beat(2)0
Avg Revenue beat(2)-13.07%
Min Revenue beat(2)-16.53%
Max Revenue beat(2)-9.62%
Revenue beat(4)0
Avg Revenue beat(4)-12.38%
Min Revenue beat(4)-16.53%
Max Revenue beat(4)-9.62%
Revenue beat(8)0
Avg Revenue beat(8)-11.15%
Revenue beat(12)3
Avg Revenue beat(12)-6.12%
Revenue beat(16)5
Avg Revenue beat(16)-4.03%
PT rev (1m)0%
PT rev (3m)-11.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.71%
Revenue NY rev (1m)-13.94%
Revenue NY rev (3m)-13.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 5.8 | ||
| P/S | 4.6 | ||
| P/FCF | 2.58 | ||
| P/OCF | 2.52 | ||
| P/B | 0.98 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.29
EY8.24%
EPS(NY)2.7
Fwd EY17.23%
FCF(TTM)6.08
FCFY38.83%
OCF(TTM)6.2
OCFY39.62%
SpS3.4
BVpS16.03
TBVpS15.29
PEG (NY)42.06
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 6.61% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 31.15% | ||
| GM | N/A | ||
| FCFM | 178.76% |
ROA(3y)0.81%
ROA(5y)0.84%
ROE(3y)8.94%
ROE(5y)7.96%
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 3Y2.95%
PM growth 5Y0.79%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 143.65% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 573.94% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC26.17%
ROIC/WACCN/A
Cap/Depr(3y)251.87%
Cap/Depr(5y)154.76%
Cap/Sales(3y)5.89%
Cap/Sales(5y)3.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.56%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-41.67%
EPS Next Y0.29%
EPS Next 2Y34.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%-3.18%
Revenue Next Year19.1%
Revenue Next 2Y30.83%
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 1Y-3.94%
FCF growth 3YN/A
FCF growth 5Y66.94%
OCF growth 1Y-2.27%
OCF growth 3YN/A
OCF growth 5Y68.97%