TSX:CWB

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Canadian Western Bank

Market Cap

CA$3.0b

Last Updated

2021/08/04 22:55 UTC

Data Sources

Company Financials +

Executive Summary

Canadian Western Bank provides personal and business banking products and services primarily in Western Canada. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Canadian Western Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CWB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CWB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

CWB

0.06%

CA Banks

1.4%

CA Market


1 Year Return

50.6%

CWB

44.8%

CA Banks

28.0%

CA Market

Return vs Industry: CWB exceeded the Canadian Banks industry which returned 44.8% over the past year.

Return vs Market: CWB exceeded the Canadian Market which returned 28% over the past year.


Shareholder returns

CWBIndustryMarket
7 Day-0.1%0.06%1.4%
30 Day-3.1%-1.5%-0.2%
90 Day-0.4%3.4%2.8%
1 Year56.3%50.6%51.2%44.8%31.8%28.0%
3 Year5.8%-5.5%33.5%16.7%33.0%20.1%
5 Year59.4%33.9%79.6%45.3%50.7%28.5%

Long-Term Price Volatility Vs. Market

How volatile is Canadian Western Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canadian Western Bank undervalued compared to its fair value and its price relative to the market?

37.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWB (CA$33.94) is trading below our estimate of fair value (CA$53.83)

Significantly Below Fair Value: CWB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CWB is good value based on its PE Ratio (10.7x) compared to the Canadian Banks industry average (12.4x).

PE vs Market: CWB is good value based on its PE Ratio (10.7x) compared to the Canadian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: CWB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CWB is good value based on its PB Ratio (0.9x) compared to the CA Banks industry average (1.6x).


Future Growth

How is Canadian Western Bank forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWB's forecast earnings growth (7.3% per year) is above the savings rate (1.5%).

Earnings vs Market: CWB's earnings (7.3% per year) are forecast to grow slower than the Canadian market (13.9% per year).

High Growth Earnings: CWB's earnings are forecast to grow, but not significantly.

Revenue vs Market: CWB's revenue (8.3% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: CWB's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CWB's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Canadian Western Bank performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWB has a high level of non-cash earnings.

Growing Profit Margin: CWB's current net profit margins (31.4%) are lower than last year (32.8%).


Past Earnings Growth Analysis

Earnings Trend: CWB's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: CWB's earnings growth over the past year (5.7%) is below its 5-year average (8.5% per year).

Earnings vs Industry: CWB earnings growth over the past year (5.7%) underperformed the Banks industry 24.1%.


Return on Equity

High ROE: CWB's Return on Equity (8.6%) is considered low.


Financial Health

How is Canadian Western Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CWB's Assets to Equity ratio (10.2x) is moderate.

Allowance for Bad Loans: CWB has a low allowance for bad loans (61%).

Low Risk Liabilities: 90% of CWB's liabilities are made up of primarily low risk sources of funding.

Loan Level: CWB has an appropriate level of Loans to Assets ratio (87%).

Low Risk Deposits: CWB's Loans to Deposits ratio (107%) is appropriate.

Level of Bad Loans: CWB has an appropriate level of bad loans (1%).


Dividend

What is Canadian Western Bank current dividend yield, its reliability and sustainability?

3.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWB's dividend (3.42%) is higher than the bottom 25% of dividend payers in the Canadian market (1.57%).

High Dividend: CWB's dividend (3.42%) is low compared to the top 25% of dividend payers in the Canadian market (4.53%).


Stability and Growth of Payments

Stable Dividend: CWB's dividends per share have been stable in the past 10 years.

Growing Dividend: CWB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), CWB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CWB's dividends in 3 years are forecast to be well covered by earnings (30.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Chris Fowler (61 yo)

8.42yrs

Tenure

CA$2,674,745

Compensation

Mr. Christopher H. Fowler, also known as Chris, M.A., has been President of Canadian Western Bank since August 30, 2012 and has been its Chief Executive Officer since March 7, 2013 and has been its Directo...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.13M) is about average for companies of similar size in the Canadian market ($USD2.13M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CWB's management team is seasoned and experienced (7.6 years average tenure).


Board Members

Experienced Board: CWB's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CWB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Canadian Western Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canadian Western Bank
  • Ticker: CWB
  • Exchange: TSX
  • Founded: 1984
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CA$2.959b
  • Shares outstanding: 87.17m
  • Website: https://www.cwbank.com

Number of Employees


Location

  • Canadian Western Bank
  • 10303 Jasper Avenue NW
  • Suite 3000
  • Edmonton
  • Alberta
  • T5J 3X6
  • Canada

Listings


Biography

Canadian Western Bank provides personal and business banking products and services primarily in Western Canada. The company offers current, savings, cash management, US dollar, and chequing accounts, as we...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 22:55
End of Day Share Price2021/08/04 00:00
Earnings2021/04/30
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.