VERSABANK (VBNK.CA) Stock Fundamental Analysis
TSX:VBNK - Toronto Stock Exchange - CA92512J1066 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to VBNK. VBNK was compared to 29 industry peers in the Banks industry. While VBNK seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
The reported operating cash flow has been mixed in the past 5 years: VBNK reported negative operating cash flow in multiple years.
1.2 Ratios
VBNK has a Return On Assets of 0.62%. This is in the lower half of the industry: VBNK underperforms 68.97% of its industry peers.
VBNK's Return On Equity of 5.94% is on the low side compared to the rest of the industry. VBNK is outperformed by 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 5.94% | ||
| 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 27.97% is fine compared to the rest of the industry. VBNK outperforms 62.07% of its industry peers.
VBNK's Profit Margin has been stable in the last couple of years.
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) | 27.97% | ||
| 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.
Compared to 1 year ago, VBNK has about the same amount of shares outstanding.
VBNK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VBNK has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of VBNK is 2.15, which is a good value as it means it would take VBNK, 2.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VBNK (2.15) is better than 100.00% of its industry peers.
VBNK has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.20, VBNK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC25.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
VBNK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.20%.
The Earnings Per Share has been growing by 11.92% on average over the past years. This is quite good.
The Revenue has decreased by -1.00% in the past year.
Measured over the past years, VBNK shows a quite strong growth in Revenue. The Revenue has been growing by 15.67% on average per year.
EPS 1Y (TTM)-38.2%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-42.22%
Revenue 1Y (TTM)-1%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%6.82%
3.2 Future
VBNK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.56% yearly.
Based on estimates for the next years, VBNK will show a very strong growth in Revenue. The Revenue will grow by 30.83% on average per year.
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 14.95 indicates a correct valuation of VBNK.
93.10% of the companies in the same industry are cheaper than VBNK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. VBNK is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 6.09, the valuation of VBNK can be described as very cheap.
The rest of the industry has a similar Price/Forward Earnings ratio as VBNK.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, VBNK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 6.09 |
4.2 Price Multiples
79.31% of the companies in the same industry are cheaper than VBNK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VBNK does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VBNK's earnings are expected to grow with 34.56% in the coming years.
PEG (NY)51.79
PEG (5Y)1.25
EPS Next 2Y34.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, VBNK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.42, VBNK's dividend is way lower than its industry peers. On top of this 96.55% of the companies listed in the same industry pay a better dividend than VBNK!
With a Dividend Yield of 0.63, VBNK pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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.
Dividend Growth(5Y)-4.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
10.89% of the earnings are spent on dividend by VBNK. This is a low number and sustainable payout ratio.
DP10.89%
EPS Next 2Y34.56%
EPS Next 3YN/A
TSX:VBNK (7/31/2025, 7:00:00 PM)
16.44
+0.08 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners36.13%
Inst Owner ChangeN/A
Ins Owners0.92%
Ins Owner ChangeN/A
Market Cap534.63M
Analysts82.22
Price Target20.23 (23.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.14
Dividend Growth(5Y)-4.67%
DP10.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.78%
Min EPS beat(2)-29.01%
Max EPS beat(2)-10.56%
EPS beat(4)0
Avg EPS beat(4)-29.26%
Min EPS beat(4)-52.56%
Max EPS beat(4)-10.56%
EPS beat(8)2
Avg EPS beat(8)-13.99%
EPS beat(12)4
Avg EPS beat(12)-8.25%
EPS beat(16)4
Avg EPS beat(16)-10.06%
Revenue beat(2)1
Avg Revenue beat(2)-7.62%
Min Revenue beat(2)-16.53%
Max Revenue beat(2)1.29%
Revenue beat(4)1
Avg Revenue beat(4)-8.79%
Min Revenue beat(4)-16.53%
Max Revenue beat(4)1.29%
Revenue beat(8)1
Avg Revenue beat(8)-9.32%
Revenue beat(12)4
Avg Revenue beat(12)-5.97%
Revenue beat(16)5
Avg Revenue beat(16)-4.13%
PT rev (1m)-3.25%
PT rev (3m)-7.75%
EPS NQ rev (1m)-30.77%
EPS NQ rev (3m)-30.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 6.09 | ||
| P/S | 4.76 | ||
| P/FCF | 10.97 | ||
| P/OCF | 10.34 | ||
| P/B | 1.01 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.1
EY6.69%
EPS(NY)2.7
Fwd EY16.41%
FCF(TTM)1.5
FCFY9.12%
OCF(TTM)1.59
OCFY9.67%
SpS3.45
BVpS16.25
TBVpS15.52
PEG (NY)51.79
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 5.94% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.97% | ||
| GM | N/A | ||
| FCFM | 43.43% |
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 | 0.2 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 101.59% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 155.25% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC25.62%
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)-38.2%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-42.22%
EPS Next Y0.29%
EPS Next 2Y34.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%6.82%
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-74.88%
FCF growth 3YN/A
FCF growth 5Y66.94%
OCF growth 1Y-73.46%
OCF growth 3YN/A
OCF growth 5Y68.97%