TSX:CWB

Stock Analysis Report

Canadian Western Bank

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


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


Market Performance


7 Day Return

2.2%

TSX:CWB

-2.1%

CA Banks

-0.6%

CA Market


1 Year Return

-20.1%

TSX:CWB

-9.2%

CA Banks

-4.9%

CA Market

CWB underperformed the Banks industry which returned -8.3% over the past year.

CWB underperformed the Market in Canada which returned -4.8% over the past year.


Share holder returns

CWBIndustryMarket
7 Day2.2%-2.1%-0.6%
30 Day2.7%-4.8%-2.6%
90 Day5.6%-5.3%-2.0%
1 Year-17.2%-20.1%-5.1%-9.2%-1.5%-4.9%
3 Year29.3%17.4%28.9%14.2%14.0%3.9%
5 Year-16.2%-28.7%38.1%12.6%12.3%-3.5%

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 based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Canadian Western Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).

Canadian Western Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Canadian Western Bank is overvalued based on earnings compared to the CA Banks industry average.

Canadian Western Bank is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Canadian Western Bank is poor value based on expected growth next year.


Price Based on Value of Assets

Canadian Western Bank is good value based on assets compared to the CA Banks industry average.


Next Steps

Future Growth

How is Canadian Western Bank expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Canadian Western Bank's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

Canadian Western Bank's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

Canadian Western Bank's revenue growth is expected to exceed the Canada market average.

Canadian Western Bank's earnings growth is positive but not above the Canada market average.

Canadian Western Bank's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Canadian Western Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Canadian Western Bank's year on year earnings growth rate has been positive over the past 5 years.

Canadian Western Bank's 1-year earnings growth exceeds its 5-year average (6.6% vs 4.7%)

Canadian Western Bank's earnings growth has not exceeded the CA Banks industry average in the past year (6.6% vs 6.6%).


Return on Equity

Canadian Western Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Canadian Western Bank used its assets more efficiently than the CA Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Canadian Western Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

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

Information is not available.

Information is not available.


Financial Institutions Analysis

Canadian Western Bank has an acceptable proportion of non-loan assets held.

Canadian Western Bank has a low allowance for bad loans.

Canadian Western Bank's liabilities are made up of primarily low risk sources of funding.

Canadian Western Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Canadian Western Bank are broadly funded by customer deposits.

Canadian Western Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Canadian Western Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).

Canadian Western Bank's dividend is below the markets top 25% of dividend payers in Canada (5.88%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

What is the CEO of Canadian Western Bank's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Chris Fowler (59yo)

6.4yrs

Tenure

CA$2,780,058

Compensation

Christopher H. Fowler is President, Chief Executive Officer and Director of Canadian Western Bank (“CWB” or “CWB Group"). He has served at CWB in roles with increasing responsibility since 1991, including, ...


CEO Compensation Analysis

Chris's remuneration is about average for companies of similar size in Canada.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

The tenure for the Canadian Western Bank management team is about average.


Board Age and Tenure

8.2yrs

Average Tenure

63.5yo

Average Age

The tenure for the Canadian Western Bank board of directors is about average.


Insider Trading

More shares have been bought than sold by Canadian Western Bank individual insiders in the past 3 months.


Recent Insider Transactions

SellCA$111,20526 Jul 19
Darrell Jones
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares3,738
Max PriceCA$29.75
BuyCA$15,32524 Jun 19
Robin Rudd
EntityIndividual
Shares525
Max PriceCA$29.19
BuyCA$99,58012 Jun 19
E. Mitchell
EntityIndividual
Shares3,350
Max PriceCA$29.73
BuyCA$16,80031 May 19
Stephen David
EntityIndividual
Shares600
Max PriceCA$28.00
SellCA$59,10028 Mar 19
Niall Boles
EntityIndividual
Shares2,000
Max PriceCA$29.55
SellCA$44,30514 Mar 19
Darrell Jones
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares1,500
Max PriceCA$29.54
SellCA$40,39214 Mar 19
Niall Boles
EntityIndividual
Shares1,369
Max PriceCA$29.62
BuyCA$94,25018 Jan 19
Darrell Jones
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares3,250
Max PriceCA$29.00
BuyCA$25,09908 Jan 19
M. Eastwood
EntityIndividual
Shares1,000
Max PriceCA$25.11
BuyCA$49,19325 Dec 18
Christopher Fowler
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceCA$24.60
BuyCA$12,52521 Dec 18
Niall Boles
EntityIndividual
Shares500
Max PriceCA$25.05
BuyCA$25,84018 Dec 18
Alan Rowe
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$25.84
BuyCA$5,64318 Dec 18
Stephen David
EntityIndividual
Shares220
Max PriceCA$25.65
BuyCA$13,15017 Dec 18
Niall Boles
EntityIndividual
Shares500
Max PriceCA$26.30
BuyCA$10,61414 Dec 18
Robin Rudd
EntityIndividual
Shares412
Max PriceCA$25.85
BuyCA$26,04211 Dec 18
Niall Boles
EntityIndividual
Shares1,000
Max PriceCA$26.14
BuyCA$95,55810 Dec 18
Margaret Mulligan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,600
Max PriceCA$26.54
BuyCA$30,73031 Oct 18
Lester Shore
EntityIndividual
Shares1,000
Max PriceCA$30.73
SellCA$27,69031 Oct 18
Darrell Jones
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares900
Max PriceCA$30.77
BuyCA$14,76325 Oct 18
Matthew Evans
EntityIndividual
Shares475
Max PriceCA$31.08
BuyCA$32,95011 Oct 18
Stephen David
EntityIndividual
Shares1,000
Max PriceCA$32.95
BuyCA$20,38808 Oct 18
Robin Rudd
EntityIndividual
Shares600
Max PriceCA$33.98

Ownership Breakdown


Management Team

  • Chris Fowler (59yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$2.78m
  • Carolyn Graham

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: CA$1.03m
  • Darrell Jones

    Executive VP & Chief Information Officer

    • Tenure: 11.0yrs
  • Matt Evans

    Senior VP of Strategy & Investor Relations

    • Tenure: 4.6yrs
  • Bogie Ozdemir

    Executive VP & Chief Risk Officer

    • Tenure: 4.7yrs
    • Compensation: CA$845.64k
  • Kelly Blackett

    Executive VP of Human Resources & Corporate Communications

    • Tenure: 4.8yrs
    • Compensation: CA$846.66k
  • Allen Stephen

    VP & Chief Accountant

    • Tenure: 11.6yrs
  • Stephen H. Murphy

    Executive Vice President of Banking

    • Tenure: 3.4yrs
    • Compensation: CA$1.17m
  • Vlad Ahmad

    Senior Vice President of Operations & Business Transformation

    • Tenure: 2.6yrs
  • Bindu Cudjoe

    Senior VP

    • Tenure: 0.0yrs

Board Members

  • Bob Phillips (68yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: CA$279.50k
  • Sandy Riley (68yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: CA$141.50k
  • Alan Rowe (63yo)

    Director

    • Tenure: 23.1yrs
    • Compensation: CA$154.50k
  • Linda Margaret Hohol (66yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: CA$155.50k
  • Chris Fowler (59yo)

    President

    • Tenure: 6.4yrs
    • Compensation: CA$2.78m
  • Sarah Morgan-Silvester (59yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: CA$159.00k
  • Raymond Protti (73yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: CA$141.00k
  • Peggy Mulligan (61yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: CA$148.50k
  • Andrew Bibby (61yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: CA$149.00k
  • Ian Reid (64yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: CA$173.50k

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$2.633b
  • Shares outstanding: 87.20m
  • Website: https://www.cwbank.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWBTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1984
C7WDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1984
CBWB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1984
CWB.PRBTSX (The Toronto Stock Exchange)PFD 5YR 1ST SER5CACADFeb 2014
CWB.PRCTSX (The Toronto Stock Exchange)1ST PFD SER 7CACADApr 2016
CWB.PRDTSX (The Toronto Stock Exchange)NON CUM SER 9CACADJan 2019

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, senior, chequing, youth, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:33
End of Day Share Price2019/08/20 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


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.