VERSABANK (VBNK.CA) Stock Fundamental Analysis
TSX:VBNK - Toronto Stock Exchange - CA92512J1066 - Common Stock - Currency: CAD
Overall VBNK gets a fundamental rating of 4 out of 10. We evaluated VBNK against 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 overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VBNK was profitable.
In the past year VBNK had a positive cash flow from operations.
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
VBNK has a Return On Assets (0.69%) which is in line with its industry peers.
VBNK has a Return On Equity of 6.61%. This is amonst the worse of the industry: VBNK underperforms 82.76% 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 has a Profit Margin of 31.15%. This is amongst the best in the industry. VBNK outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of VBNK has remained more or less at the same level.
The Operating Margin and Gross Margin are not available for VBNK so they could not be analyzed.
| 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.
VBNK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VBNK has been increased compared to 5 years ago.
VBNK has a better debt/assets ratio than last year.
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.
VBNK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VBNK (0.21) is better than 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
WACC26.57%
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 -38.94%.
Measured over the past years, VBNK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.92% on average per year.
The Revenue has been growing slightly by 2.76% in the past year.
VBNK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.67% yearly.
EPS 1Y (TTM)-38.94%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-45.15%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%10.83%
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
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.01, the valuation of VBNK can be described as correct.
93.10% of the companies in the same industry are cheaper than VBNK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.34, VBNK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 5.66, the valuation of VBNK can be described as very cheap.
VBNK's Price/Forward Earnings ratio is in line with the industry average.
VBNK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as VBNK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.51 | ||
| 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.
VBNK's earnings are expected to grow with 34.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)48.54
PEG (5Y)1.18
EPS Next 2Y34.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, VBNK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.02, 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 0.66, VBNK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
VBNK pays out 10.17% of its income as dividend. This is a sustainable payout ratio.
DP10.17%
EPS Next 2Y34.56%
EPS Next 3YN/A
TSX:VBNK (6/19/2025, 7:00:00 PM)
15.27
-0.03 (-0.2%)
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 Cap496.58M
Analysts82.22
Price Target21.59 (41.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.14
Dividend Growth(5Y)-4.67%
DP10.17%
Div Incr Years0
Div Non Decr Years0
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)-1.55%
PT rev (3m)-12.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 5.66 | ||
| P/S | 4.49 | ||
| P/FCF | 2.51 | ||
| P/OCF | 2.46 | ||
| P/B | 0.95 | ||
| P/tB | 1 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.09
EY7.14%
EPS(NY)2.7
Fwd EY17.67%
FCF(TTM)6.08
FCFY39.82%
OCF(TTM)6.2
OCFY40.63%
SpS3.4
BVpS16.03
TBVpS15.29
PEG (NY)48.54
PEG (5Y)1.18
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
WACC26.57%
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)-38.94%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-45.15%
EPS Next Y0.29%
EPS Next 2Y34.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.76%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%10.83%
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%