VERSABANK (VBNK)
CA92512J1066 - Common Stock
We assign a fundamental rating of 4 out of 10 to VBNK. VBNK was compared to 411 industry peers in the Banks industry. While VBNK is still in line with the averages on profitability rating, there are concerns on its financial health. VBNK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
VBNK had positive earnings in the past year.
VBNK had a negative operating cash flow in the past year.
VBNK had positive earnings in each of the past 5 years.
In multiple years VBNK reported negative operating cash flow during the last 5 years.
1.2 Ratios
VBNK has a Return On Assets of 1.03%. This is in the better half of the industry: VBNK outperforms 65.45% of its industry peers.
VBNK's Return On Equity of 11.43% is fine compared to the rest of the industry. VBNK outperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 11.43% | ||
| ROIC | N/A |
ROA(3y)0.83%
ROA(5y)0.88%
ROE(3y)7.79%
ROE(5y)7.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VBNK has a Profit Margin of 39.85%. This is amongst the best in the industry. VBNK outperforms 94.65% of its industry peers.
VBNK's Profit Margin has improved 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) | 39.85% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y6.01%
PM growth 5Y4.3%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for VBNK has been increased compared to 5 years ago.
Compared to 1 year ago, VBNK has an improved debt to assets ratio.
2.2 Solvency
VBNK has a Debt/Equity ratio of 0.67. This is a neutral value indicating VBNK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, VBNK is not doing good in the industry: 77.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.85%
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 grown by an impressive 81.91% over the past year.
VBNK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.11% yearly.
Looking at the last year, VBNK shows a very strong growth in Revenue. The Revenue has grown by 23.90%.
VBNK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.01% yearly.
EPS 1Y (TTM)81.91%
EPS 3Y24.1%
EPS 5Y10.11%
EPS growth Q2Q41.18%
Revenue 1Y (TTM)23.9%
Revenue growth 3Y26.09%
Revenue growth 5Y16.01%
Revenue growth Q2Q2.51%
3.2 Future
VBNK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.88% yearly.
The Revenue is expected to grow by 22.06% on average over the next years. This is a very strong growth
EPS Next Y29.72%
EPS Next 2Y28.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.77%
Revenue Next 2Y22.06%
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
Based on the Price/Earnings ratio of 7.75, the valuation of VBNK can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of VBNK indicates a rather cheap valuation: VBNK is cheaper than 83.70% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.15. VBNK is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.06, the valuation of VBNK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VBNK indicates a rather cheap valuation: VBNK is cheaper than 96.59% of the companies listed in the same industry.
VBNK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 5.06 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 28.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)0.77
EPS Next 2Y28.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VBNK has a yearly dividend return of 0.76%, which is pretty low.
With a Dividend Yield of 0.76, VBNK pays less dividend than the industry average, which is at 3.68. 85.16% of the companies listed in the same industry pay a better dividend than VBNK!
Compared to an average S&P500 Dividend Yield of 2.34, VBNK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of VBNK decreases each year by -0.99%.
VBNK has been paying a dividend for over 5 years, so it has already some track record.
VBNK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-0.99%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
VBNK pays out 8.07% of its income as dividend. This is a sustainable payout ratio.
DP8.07%
EPS Next 2Y28.88%
EPS Next 3YN/A
VERSABANK
NASDAQ:VBNK (5/17/2024, 7:00:02 PM)
9.69
+0.06 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap251.60M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 5.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.26
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 11.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 39.85% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)81.91%
EPS 3Y24.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.9%
Revenue growth 3Y26.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y