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 31 industry peers in the Banks industry. There are concerns on the financial health of NA while its profitability can be described as average. NA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NA had positive earnings in the past year.
In the past year NA had a positive cash flow from operations.
NA had positive earnings in each of the past 5 years.
Of the past 5 years NA 4 years had a positive operating cash flow.
1.2 Ratios
NA has a Return On Assets of 0.79%. This is amongst the best in the industry. NA outperforms 80.65% of its industry peers.
NA has a Return On Equity of 14.34%. This is amongst the best in the industry. NA outperforms 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 14.34% | ||
| 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
The Profit Margin of NA (32.13%) is better than 80.65% of its industry peers.
In the last couple of years the Profit Margin of NA has grown nicely.
NA 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) | 32.13% | ||
| 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.
The debt/assets ratio for NA has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of NA is 12.12, which is on the high side as it means it would take NA, 12.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.12, NA perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
A Debt/Equity ratio of 1.99 is on the high side and indicates that NA has dependencies on debt financing.
NA has a Debt to Equity ratio of 1.99. This is in the better half of the industry: NA outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 12.12 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.48%
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 8.34%, which is quite good.
NA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.31% yearly.
The Revenue has grown by 12.09% in the past year. This is quite good.
NA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.93% yearly.
EPS 1Y (TTM)8.34%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%5.74%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%8.34%
3.2 Future
The Earnings Per Share is expected to grow by 7.13% on average over the next years.
NA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.29% yearly.
EPS Next Y6.79%
EPS Next 2Y8.45%
EPS Next 3Y7.2%
EPS Next 5Y7.13%
Revenue Next Year9.82%
Revenue Next 2Y11.29%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.98, the valuation of NA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NA indicates a rather expensive valuation: NA more expensive than 87.10% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. NA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.21, which indicates a very decent valuation of NA.
90.32% of the companies in the same industry are cheaper than NA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. NA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NA is valued more expensive than 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.76
PEG (5Y)1.16
EPS Next 2Y8.45%
EPS Next 3Y7.2%
5. Dividend
5.1 Amount
NA has a Yearly Dividend Yield of 3.69%. Purely for dividend investing, there may be better candidates out there.
NA's Dividend Yield is slightly below the industry average, which is at 4.02.
Compared to an average S&P500 Dividend Yield of 2.27, NA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.25%
Div Incr Years15
Div Non Decr Years31
5.3 Sustainability
44.77% of the earnings are spent on dividend by NA. This is a bit on the high side, but may be sustainable.
The dividend of NA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.77%
EPS Next 2Y8.45%
EPS Next 3Y7.2%
TSX:NA (2/21/2025, 7:00:00 PM)
124.43
+0.95 (+0.77%)
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 Cap48.68B
Analysts76
Price Target143.04 (14.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend4.83
Dividend Growth(5Y)10.25%
DP44.77%
Div Incr Years15
Div Non Decr Years31
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.07%
Min EPS beat(2)-2.42%
Max EPS beat(2)4.56%
EPS beat(4)3
Avg EPS beat(4)2.38%
Min EPS beat(4)-2.42%
Max EPS beat(4)6.72%
EPS beat(8)5
Avg EPS beat(8)0.68%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)10
Avg EPS beat(16)3.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)1.15%
Revenue beat(8)3
Avg Revenue beat(8)-1.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.91%
Revenue beat(16)5
Avg Revenue beat(16)-1.86%
PT rev (1m)1.72%
PT rev (3m)11.93%
EPS NQ rev (1m)1%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)2.24%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 11.21 | ||
| P/S | 4.27 | ||
| P/FCF | 11.57 | ||
| P/OCF | 10.46 | ||
| P/B | 1.91 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.39
EY8.35%
EPS(NY)11.1
Fwd EY8.92%
FCF(TTM)10.76
FCFY8.65%
OCF(TTM)11.89
OCFY9.56%
SpS29.14
BVpS65.31
TBVpS58.27
PEG (NY)1.76
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 14.34% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 32.13% | ||
| GM | N/A | ||
| FCFM | 36.92% |
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-Score7
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 12.12 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 86.19% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 114.91% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC17.48%
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)8.34%
EPS 3Y5.02%
EPS 5Y10.31%
EPS Q2Q%5.74%
EPS Next Y6.79%
EPS Next 2Y8.45%
EPS Next 3Y7.2%
EPS Next 5Y7.13%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y8.49%
Revenue growth 5Y8.93%
Sales Q2Q%8.34%
Revenue Next Year9.82%
Revenue Next 2Y11.29%
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-12.57%
FCF growth 3Y-10.63%
FCF growth 5Y-12.35%
OCF growth 1Y-9.95%
OCF growth 3Y-8.7%
OCF growth 5Y-10.89%