NATIONAL BANK OF CANADA (NA.CA) Stock Fundamental Analysis
TSX:NA - Toronto Stock Exchange - CA6330671034 - Common Stock - Currency: CAD
Taking everything into account, NA scores 4 out of 10 in our fundamental rating. NA was compared to 30 industry peers in the Banks industry. NA has a medium profitability rating, but doesn't score so well on its financial health evaluation. NA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NA was profitable.
NA had a positive operating cash flow in the past year.
NA had positive earnings in each of the past 5 years.
NA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NA has a better Return On Assets (0.77%) than 66.67% of its industry peers.
NA's Return On Equity of 14.15% is amongst the best of the industry. NA outperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 14.15% | ||
| ROIC | N/A |
ROA(3y)0.78%
ROA(5y)0.76%
ROE(3y)14.26%
ROE(5y)14.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NA has a Profit Margin of 31.47%. This is amongst the best in the industry. NA outperforms 86.67% of its industry peers.
NA's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for NA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 31.47% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.07%
PM growth 5Y2.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
NA does not have a ROIC to compare to the WACC, probably because it is not profitable.
NA has more shares outstanding than it did 1 year ago.
NA has more shares outstanding than it did 5 years ago.
NA has a better debt/assets ratio than last year.
2.2 Solvency
NA has a debt to FCF ratio of 17.77. This is a negative value and a sign of low solvency as NA would need 17.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.77, NA is doing worse than 93.33% of the companies in the same industry.
NA has a Debt/Equity ratio of 1.97. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NA (1.97) is better than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 17.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.91%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
NA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.54%, which is quite good.
The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
NA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.29%.
Measured over the past years, NA shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
EPS 1Y (TTM)11.54%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%13.13%
Revenue 1Y (TTM)15.29%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%14.54%
3.2 Future
NA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.14% yearly.
The Revenue is expected to grow by 8.58% on average over the next years. This is quite good.
EPS Next Y4.43%
EPS Next 2Y7.22%
EPS Next 3Y6.8%
EPS Next 5Y3.14%
Revenue Next Year14.68%
Revenue Next 2Y10.78%
Revenue Next 3Y8.58%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.96, which indicates a very decent valuation of NA.
Compared to the rest of the industry, the Price/Earnings ratio of NA indicates a rather expensive valuation: NA more expensive than 86.67% of the companies listed in the same industry.
NA is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
NA is valuated reasonably with a Price/Forward Earnings ratio of 9.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NA indicates a rather expensive valuation: NA more expensive than 93.33% of the companies listed in the same industry.
NA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NA indicates a rather expensive valuation: NA more expensive than 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.47
PEG (5Y)1.06
EPS Next 2Y7.22%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
NA has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
NA's Dividend Yield is slightly below the industry average, which is at 4.53.
NA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of NA is nicely growing with an annual growth rate of 10.25%!
NA has been paying a dividend for at least 10 years, so it has a reliable track record.
NA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.25%
Div Incr Years15
Div Non Decr Years31
5.3 Sustainability
44.78% of the earnings are spent on dividend by NA. This is a bit on the high side, but may be sustainable.
NA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.78%
EPS Next 2Y7.22%
EPS Next 3Y6.8%
TSX:NA (4/23/2025, 7:00:00 PM)
117.56
+0.68 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners32.19%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap46.00B
Analysts74.55
Price Target137.48 (16.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend4.83
Dividend Growth(5Y)10.25%
DP44.78%
Div Incr Years15
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.45%
Min EPS beat(2)-2.42%
Max EPS beat(2)7.33%
EPS beat(4)3
Avg EPS beat(4)2.53%
Min EPS beat(4)-2.42%
Max EPS beat(4)7.33%
EPS beat(8)5
Avg EPS beat(8)0.98%
EPS beat(12)7
Avg EPS beat(12)0.86%
EPS beat(16)10
Avg EPS beat(16)2.41%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)3.19%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.71%
Revenue beat(12)4
Avg Revenue beat(12)-1.94%
Revenue beat(16)5
Avg Revenue beat(16)-1.88%
PT rev (1m)-1.15%
PT rev (3m)-3.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.41%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.84 | ||
| P/S | 3.87 | ||
| P/FCF | 15.71 | ||
| P/OCF | 14.42 | ||
| P/B | 1.74 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.73
EY9.13%
EPS(NY)11.94
Fwd EY10.16%
FCF(TTM)7.48
FCFY6.37%
OCF(TTM)8.16
OCFY6.94%
SpS30.34
BVpS67.46
TBVpS60.42
PEG (NY)2.47
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 14.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 31.47% | ||
| GM | N/A | ||
| FCFM | 24.66% |
ROA(3y)0.78%
ROA(5y)0.76%
ROE(3y)14.26%
ROE(5y)14.14%
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 3Y-2.07%
PM growth 5Y2.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 17.77 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 49.91% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 78.37% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC17.91%
ROIC/WACCN/A
Cap/Depr(3y)71.63%
Cap/Depr(5y)60.13%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.54%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%13.13%
EPS Next Y4.43%
EPS Next 2Y7.22%
EPS Next 3Y6.8%
EPS Next 5Y3.14%
Revenue 1Y (TTM)15.29%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%14.54%
Revenue Next Year14.68%
Revenue Next 2Y10.78%
Revenue Next 3Y8.58%
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-44.82%
FCF growth 3Y-10.63%
FCF growth 5Y-12.35%
OCF growth 1Y-43.18%
OCF growth 3Y-8.7%
OCF growth 5Y-10.89%