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CWB

Canadian Western Bank TSX:CWB Stock Report

Last Price

CA$27.32

Market Cap

CA$2.5b

7D

-2.5%

1Y

-20.8%

Updated

19 Aug, 2022

Data

Company Financials +
CWB fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends5/6

CWB Stock Overview

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

Canadian Western Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canadian Western Bank
Historical stock prices
Current Share PriceCA$27.32
52 Week HighCA$41.56
52 Week LowCA$24.11
Beta1.73
1 Month Change9.32%
3 Month Change-15.05%
1 Year Change-20.81%
3 Year Change-9.66%
5 Year Change-4.11%
Change since IPO2,533.25%

Recent News & Updates

Jun 03
Canadian Western Bank (TSE:CWB) Will Pay A Larger Dividend Than Last Year At CA$0.31

Canadian Western Bank (TSE:CWB) Will Pay A Larger Dividend Than Last Year At CA$0.31

The board of Canadian Western Bank ( TSE:CWB ) has announced that it will be increasing its dividend on the 23rd of...

Shareholder Returns

CWBCA BanksCA Market
7D-2.5%2.9%1.3%
1Y-20.8%1.0%3.3%

Return vs Industry: CWB underperformed the Canadian Banks industry which returned 1% over the past year.

Return vs Market: CWB underperformed the Canadian Market which returned 3.3% over the past year.

Price Volatility

Is CWB's price volatile compared to industry and market?
CWB volatility
CWB Average Weekly Movement4.6%
Banks Industry Average Movement3.0%
Market Average Movement10.5%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.2%

Stable Share Price: CWB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CWB's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19842,617Chris Fowlerhttps://www.cwbank.com

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 well as organization, strata solution/condo, general trust, and trust fund investment accounts. It also offers commercial lending and real estate, and equipment financing and leasing products; loans and mortgages; secured and unsecured lines of credit; registered retirement savings plan; consolidation, vehicle, and recreation vehicle loans; and credit cards.

Canadian Western Bank Fundamentals Summary

How do Canadian Western Bank's earnings and revenue compare to its market cap?
CWB fundamental statistics
Market CapCA$2.53b
Earnings (TTM)CA$338.08m
Revenue (TTM)CA$1.03b

7.5x

P/E Ratio

0.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWB income statement (TTM)
RevenueCA$1.03b
Cost of RevenueCA$0
Gross ProfitCA$1.03b
Other ExpensesCA$691.47m
EarningsCA$338.08m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)3.66
Gross Margin100.00%
Net Profit Margin32.84%
Debt/Equity Ratio88.9%

How did CWB perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CWB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CWB?

Other financial metrics that can be useful for relative valuation.

CWB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does CWB's PE Ratio compare to its peers?

CWB PE Ratio vs Peers
The above table shows the PE ratio for CWB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.1x
VBNK VersaBank
13.1xn/aCA$273.9m
LB Laurentian Bank of Canada
29.4x20.6%CA$1.8b
FN First National Financial
11.1x-0.2%CA$2.2b
EQB EQB
6.6x14.6%CA$1.9b
CWB Canadian Western Bank
7.5x12.4%CA$2.5b

Price-To-Earnings vs Peers: CWB is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (15.1x).


Price to Earnings Ratio vs Industry

How does CWB's PE Ratio compare vs other companies in the North American Banks Industry?

Price-To-Earnings vs Industry: CWB is good value based on its Price-To-Earnings Ratio (7.5x) compared to the Canadian Banks industry average (9.7x)


Price to Earnings Ratio vs Fair Ratio

What is CWB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CWB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: CWB is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).


Share Price vs Fair Value

What is the Fair Price of CWB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CWB (CA$27.32) is trading below our estimate of fair value (CA$71.45)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Canadian Western Bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWB's forecast earnings growth (12.4% per year) is above the savings rate (1.6%).

Earnings vs Market: CWB's earnings (12.4% per year) are forecast to grow faster than the Canadian market (7.4% per year).

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

Revenue vs Market: CWB's revenue (11.1% per year) is forecast to grow faster than the Canadian market (6.6% per year).

High Growth Revenue: CWB's revenue (11.1% 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 (11.3%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.8%

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 (32.8%) are higher than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: CWB's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: CWB's earnings growth over the past year (22.1%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: CWB earnings growth over the past year (22.1%) exceeded the Banks industry 20.1%.


Return on Equity

High ROE: CWB's Return on Equity (10.1%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CWB's Assets to Equity ratio (10.7x) is moderate.

Allowance for Bad Loans: CWB has a low allowance for bad loans (80%).

Low Risk Liabilities: 89% 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 (108%) is appropriate.

Level of Bad Loans: CWB has an appropriate level of bad loans (0.6%).


Discover healthy companies

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CWB's dividend (4.54%) is higher than the bottom 25% of dividend payers in the Canadian market (1.83%).

High Dividend: CWB's dividend (4.54%) 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

Earnings Coverage: With its reasonably low payout ratio (31.1%), 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 (31.3% payout ratio).


Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure


CEO

Chris Fowler (62 yo)

10yrs

Tenure

CA$3,124,396

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 ($USD2.40M) is about average for companies of similar size in the Canadian market ($USD2.29M).

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 (6.4 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 been diluted in the past year, with total shares outstanding growing by 6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Canadian Western Bank
  • Ticker: CWB
  • Exchange: TSX
  • Founded: 1984
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: CA$2.525b
  • Shares outstanding: 92.43m
  • Website: https://www.cwbank.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2022/04/30
Annual Earnings2021/10/31


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.