VERSABANK (VBNK.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:VBNK - CA92512J1066 - Common Stock
22.3 CAD
+0.24 (+1.09%)
Taking everything into account, VBNK scores 4 out of 10 in our fundamental rating. VBNK was compared to 24 industry peers in the Banks industry. VBNK has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- VBNK had a positive operating cash flow in the past year.
- Each year in the past 5 years VBNK has 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
- The Return On Assets of VBNK (0.49%) is worse than 83.33% of its industry peers.
- VBNK's Return On Equity of 5.34% is on the low side compared to the rest of the industry. VBNK is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 5.34% | ||
| ROIC | N/A |
ROA(3y)0.76%
ROA(5y)0.76%
ROE(3y)8.66%
ROE(5y)7.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- VBNK's Profit Margin of 22.83% is in line compared to the rest of the industry. VBNK outperforms 41.67% of its industry peers.
- VBNK's Profit Margin has declined 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) | 22.83% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.61%
PM growth 5Y-6.42%
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 has been increased compared to 1 year ago.
- Compared to 5 years ago, VBNK has more shares outstanding
- 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 2.44. This is a good value and a sign of high solvency as VBNK would need 2.44 years to pay back of all of its debts.
- The Debt to FCF ratio of VBNK (2.44) 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.
- The Debt to Equity ratio of VBNK (0.20) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC23.11%
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 -38.93% in the last year.
- Measured over the past 5 years, VBNK shows a small growth in Earnings Per Share. The EPS has been growing by 1.95% on average per year.
- The Revenue has grown by 11.65% in the past year. This is quite good.
- VBNK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.13% yearly.
EPS 1Y (TTM)-38.93%
EPS 3Y4.83%
EPS 5Y1.95%
EPS Q2Q%-15%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y14.8%
Revenue growth 5Y18.13%
Sales Q2Q%31.05%
3.2 Future
- Based on estimates for the next years, VBNK will show a very strong growth in Earnings Per Share. The EPS will grow by 67.06% on average per year.
- Based on estimates for the next years, VBNK will show a very strong growth in Revenue. The Revenue will grow by 30.96% on average per year.
EPS Next Y84.95%
EPS Next 2Y67.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year31.21%
Revenue Next 2Y30.96%
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
- With a Price/Earnings ratio of 24.51, VBNK is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of VBNK indicates a rather expensive valuation: VBNK more expensive than 95.83% of the companies listed in the same industry.
- VBNK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 13.25, VBNK is valued correctly.
- Based on the Price/Forward Earnings ratio, VBNK is valued a bit more expensive than 79.17% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VBNK to the average of the S&P500 Index (24.26), we can say VBNK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 13.25 |
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 | 16.38 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- VBNK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- VBNK's earnings are expected to grow with 67.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)12.56
EPS Next 2Y67.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- VBNK has a yearly dividend return of 0.45%, which is pretty low.
- With a Dividend Yield of 0.45, VBNK pays less dividend than the industry average, which is at 3.33. 95.83% of the companies listed in the same industry pay a better dividend than VBNK!
- With a Dividend Yield of 0.45, VBNK pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
- The dividend of VBNK decreases each year by -11.33%.
- VBNK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-11.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 11.37% of the earnings are spent on dividend by VBNK. This is a low number and sustainable payout ratio.
DP11.37%
EPS Next 2Y67.06%
EPS Next 3YN/A
VERSABANK / VBNK.CA FAQ
What is the ChartMill fundamental rating of VERSABANK (VBNK.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VBNK.CA.
What is the valuation status for VBNK stock?
ChartMill assigns a valuation rating of 4 / 10 to VERSABANK (VBNK.CA). This can be considered as Fairly Valued.
What is the profitability of VBNK stock?
VERSABANK (VBNK.CA) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for VBNK stock?
The Price/Earnings (PE) ratio for VERSABANK (VBNK.CA) is 24.51 and the Price/Book (PB) ratio is 1.34.
What is the financial health of VERSABANK (VBNK.CA) stock?
The financial health rating of VERSABANK (VBNK.CA) is 3 / 10.