VERSABANK (VBNK.CA) Stock Fundamental Analysis
TSX:VBNK - Toronto Stock Exchange - CA92512J1066 - Common Stock - Currency: CAD
VBNK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Banks industry. VBNK has an average financial health and profitability rating. 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.
In the past 5 years VBNK has always 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 (0.80%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.71%, VBNK is in line with its industry, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 9.71% | ||
| 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 34.72%. 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) | 34.72% | ||
| 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.
Compared to 1 year ago, VBNK has about the same amount of shares outstanding.
VBNK has more shares outstanding than it did 5 years ago.
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 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
VBNK's Debt to FCF ratio of 0.42 is amongst the best of the industry. VBNK outperforms 100.00% of its industry peers.
VBNK has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VBNK (0.26) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC24.12%
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 by -5.10% in the last year.
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.
VBNK shows a small growth in Revenue. In the last year, the Revenue has grown by 2.76%.
The Revenue has been growing by 15.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.1%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-57.45%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%-5.1%
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 49.77% 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 39.67% on average per year.
EPS Next Y39.65%
EPS Next 2Y49.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38.38%
Revenue Next 2Y39.67%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.15 indicates a correct valuation of VBNK.
Based on the Price/Earnings ratio, VBNK is valued expensively inside the industry as 90.32% of the companies are valued cheaper.
VBNK is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.70 indicates a reasonable valuation of VBNK.
77.42% of the companies in the same industry are cheaper than VBNK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VBNK to the average of the S&P500 Index (22.68), we can say VBNK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, VBNK is valued a bit cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.32 | ||
| 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.
A more expensive valuation may be justified as VBNK's earnings are expected to grow with 49.77% in the coming years.
PEG (NY)0.31
PEG (5Y)1.02
EPS Next 2Y49.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, VBNK is not a good candidate for dividend investing.
In the last 3 months the price of VBNK has falen by -23.63%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 0.54, VBNK pays less dividend than the industry average, which is at 4.02. 96.77% of the companies listed in the same industry pay a better dividend than VBNK!
With a Dividend Yield of 0.54, VBNK pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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.
As VBNK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-4.67%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
VBNK pays out 9.26% of its income as dividend. This is a sustainable payout ratio.
DP9.26%
EPS Next 2Y49.77%
EPS Next 3YN/A
TSX:VBNK (2/21/2025, 7:00:00 PM)
18.1
-0.52 (-2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners34.6%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap588.43M
Analysts82.22
Price Target24.65 (36.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.14
Dividend Growth(5Y)-4.67%
DP9.26%
Div Incr Years1
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.73%
Min EPS beat(2)-52.56%
Max EPS beat(2)-24.91%
EPS beat(4)1
Avg EPS beat(4)-18.82%
Min EPS beat(4)-52.56%
Max EPS beat(4)3.05%
EPS beat(8)4
Avg EPS beat(8)-5.05%
EPS beat(12)4
Avg EPS beat(12)-8.75%
EPS beat(16)4
Avg EPS beat(16)-7.99%
Revenue beat(2)0
Avg Revenue beat(2)-9.95%
Min Revenue beat(2)-10.28%
Max Revenue beat(2)-9.62%
Revenue beat(4)0
Avg Revenue beat(4)-10.71%
Min Revenue beat(4)-13.08%
Max Revenue beat(4)-9.62%
Revenue beat(8)1
Avg Revenue beat(8)-8.68%
Revenue beat(12)3
Avg Revenue beat(12)-4.93%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)22.88%
EPS NQ rev (1m)-17.73%
EPS NQ rev (3m)-32.75%
EPS NY rev (1m)-14.64%
EPS NY rev (3m)-14.64%
Revenue NQ rev (1m)8.38%
Revenue NQ rev (3m)-12.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 8.7 | ||
| P/S | 5.27 | ||
| P/FCF | 2.32 | ||
| P/OCF | 2.16 | ||
| P/B | 1.47 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.49
EY8.23%
EPS(NY)2.08
Fwd EY11.5%
FCF(TTM)7.82
FCFY43.19%
OCF(TTM)8.39
OCFY46.34%
SpS3.43
BVpS12.28
TBVpS11.53
PEG (NY)0.31
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 9.71% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 34.72% | ||
| GM | N/A | ||
| FCFM | 227.65% |
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 | 0.26 | ||
| Debt/FCF | 0.42 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 705.32% | ||
| Cap/Sales | 16.64% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 655.64% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC24.12%
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)-5.1%
EPS 3Y15.78%
EPS 5Y11.92%
EPS Q2Q%-57.45%
EPS Next Y39.65%
EPS Next 2Y49.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.76%
Revenue growth 3Y19.53%
Revenue growth 5Y15.67%
Sales Q2Q%-5.1%
Revenue Next Year38.38%
Revenue Next 2Y39.67%
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 1Y169.33%
FCF growth 3YN/A
FCF growth 5Y66.94%
OCF growth 1Y187.92%
OCF growth 3YN/A
OCF growth 5Y68.97%