TSX:CWB

Stock Analysis Report

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Canadian Western Bank

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: CWB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CWB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

CWB

-0.3%

CA Banks

0.04%

CA Market


1 Year Return

-14.3%

CWB

-3.9%

CA Banks

1.3%

CA Market

Return vs Industry: CWB underperformed the Canadian Banks industry which returned -4.4% over the past year.

Return vs Market: CWB underperformed the Canadian Market which returned 0.7% over the past year.


Shareholder returns

CWBIndustryMarket
7 Day-0.7%-0.3%0.04%
30 Day19.8%16.7%10.9%
90 Day10.2%11.2%7.2%
1 Year-10.5%-14.3%1.1%-3.9%5.0%1.3%
3 Year-5.8%-15.4%10.1%-3.6%13.5%2.4%
5 Year58.4%32.8%61.4%30.4%54.2%30.5%

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?

12.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWB (CA$30.42) is trading below our estimate of fair value (CA$34.86)

Significantly Below Fair Value: CWB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CWB is good value based on its PE Ratio (10.5x) compared to the CA Banks industry average (12.8x).

PE vs Market: CWB is good value based on its PE Ratio (10.5x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: CWB is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: CWB is good value based on its PB Ratio (1x) compared to the CA Banks industry average (1.2x).


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWB's forecast earnings growth (4.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CWB's earnings (4.3% per year) are forecast to grow slower than the Canadian market (25.8% per year).

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

Revenue vs Market: CWB's revenue (5.1% per year) is forecast to grow slower than the Canadian market (6.2% per year).

High Growth Revenue: CWB's revenue (5.1% 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 (9.4%).


Next Steps

Past Performance

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

7.9%

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 (31.8%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: CWB's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: CWB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CWB had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Banks industry average (-14.8%).


Return on Equity

High ROE: CWB's Return on Equity (8.8%) is considered low.


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


Financial Institutions Analysis

Asset Level: CWB's Assets to Equity ratio (10.6x) is moderate.

Allowance for Bad Loans: CWB has a low allowance for bad loans (52%).

Low Risk Liabilities: 88% 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 (89%).

Low Risk Deposits: CWB's Loans to Deposits ratio (112%) is appropriate.

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


Next Steps

Dividend

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

3.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWB's dividend (3.81%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: CWB's dividend (3.81%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).


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 (39.3%), 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 (37.2% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Chris Fowler (60 yo)

7.75yrs

Tenure

CA$3,053,909

Compensation

Mr. Christopher H. Fowler, also known as Chris, M.A., is President, Chief Executive Officer and Director of Canadian Western Bank (“CWB” or “CWB Group"). He has served at CWB in roles with increasing respo...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.36M) is about average for companies of similar size in the Canadian market ($USD2.05M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Fowler
President7.75yrsCA$3.05m0.14%
CA$ 3.8m
Carolyn Graham
Executive VP & CFO6.17yrsCA$1.09m0.047%
CA$ 1.3m
Kelly Blackett
Executive Vice President of Human Resources & Corporate Communications6.17yrsCA$1.03m0.017%
CA$ 447.3k
H. Ozdemir
Executive VP & Chief Risk Officer6yrsCA$1.20m0.017%
CA$ 469.4k
Stephen H. Murphy
Executive Vice President of Banking4.75yrsCA$1.02m0.025%
CA$ 682.5k
Vladimir Ahmad
Senior Vice President of Operations & Business Transformation3.92yrsno data0.0032%
CA$ 87.2k
Allen Stephen
VP & Chief Accountant12.92yrsno datano data
Darrell Jones
Executive VP & Chief Information Officer12.33yrsno data0.023%
CA$ 627.4k
R. Rudd
Senior Vice President of Finance & Investor Relationsno datano datano data
Bindu Cudjoe
Senior VPno datano data0.0013%
CA$ 35.5k
Keith Hughes
Senior Vice President of Salesno datano datano data
M. Eastwood
Executive Vice President of Business Transformation9yrsno data0.0095%
CA$ 254.3k

6.2yrs

Average Tenure

Experienced Management: CWB's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Fowler
President7.75yrsCA$3.05m0.14%
CA$ 3.8m
Robert Phillips
Independent Chairman of the Boardno dataCA$318.50k0.043%
CA$ 1.2m
H. Riley
Independent Director9.75yrsCA$157.50k0.020%
CA$ 540.7k
Robert Manning
Independent Director34.92yrsCA$181.50k0.044%
CA$ 1.2m
Linda Margaret Hohol
Independent Director9.5yrsCA$162.00k0.011%
CA$ 293.4k
Sarah Morgan-Silvester
Independent Director6.75yrsCA$187.50k0.013%
CA$ 360.1k
Raymond Protti
Independent Director11.75yrsCA$156.50k0.020%
CA$ 546.1k
Margaret Mulligan
Independent Director3.75yrsCA$170.00k0.010%
CA$ 278.0k
Andrew Bibby
Independent Director8yrsCA$170.00k0.013%
CA$ 344.2k
Ian Reid
Independent Director9.75yrsCA$177.50k0.012%
CA$ 329.7k
E. Mitchell
Independent Director1.92yrsCA$125.75k0.029%
CA$ 783.2k
Mary Filippelli
Director0.33yrno datano data

8.0yrs

Average Tenure

65yo

Average Age

Experienced Board: CWB's board of directors are considered experienced (8 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$2.691b
  • Shares outstanding: 87.10m
  • 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)4.4 PF 5YR 1ST 5CACADFeb 2014
CWES.FOTCPK (Pink Sheets LLC)4.4 PF 5YR 1ST 5USUSDFeb 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 Analysis2020/12/02 23:02
End of Day Share Price2020/12/02 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


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.