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CWB

Canadian Western Bank TSX:CWB Stock Report

Last Price

CA$22.30

Market Cap

CA$2.1b

7D

-8.8%

1Y

-40.0%

Updated

26 Sep, 2022

Data

Company Financials +

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$22.30
52 Week HighCA$41.56
52 Week LowCA$22.19
Beta1.73
1 Month Change-14.20%
3 Month Change-15.63%
1 Year Change-39.97%
3 Year Change-32.95%
5 Year Change-34.57%
Change since IPO2,049.40%

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-8.8%-4.1%-6.4%
1Y-40.0%-6.5%-8.4%

Return vs Industry: CWB underperformed the Canadian Banks industry which returned -5.8% over the past year.

Return vs Market: CWB underperformed the Canadian Market which returned -7.3% over the past year.

Price Volatility

Is CWB's price volatile compared to industry and market?
CWB volatility
CWB Average Weekly Movement3.7%
Banks Industry Average Movement2.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.2%
10% least volatile stocks in CA Market3.8%

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.

About the Company

FoundedEmployeesCEOWebsite
19842,674Chris 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$2.07b
Earnings (TTM)CA$332.61m
Revenue (TTM)CA$1.03b

6.2x

P/E Ratio

0.6x

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$700.88m
EarningsCA$332.61m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

Dec 02, 2022

Earnings per share (EPS)3.58
Gross Margin100.00%
Net Profit Margin32.18%
Debt/Equity Ratio94.5%

How did CWB perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

33%

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 Ratio0.9x

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 Average13.1x
VBNK VersaBank
12.8xn/aCA$269.7m
LB Laurentian Bank of Canada
23.6x15.9%CA$1.3b
FN First National Financial
10.9x-0.2%CA$2.2b
EQB EQB
5.3x16.0%CA$1.6b
CWB Canadian Western Bank
6.2x7.2%CA$2.1b

Price-To-Earnings vs Peers: CWB is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (13.1x).


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 (6.2x) compared to the North American 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 Ratio6.2x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: CWB is good value based on its Price-To-Earnings Ratio (6.2x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


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$22.3) is trading below our estimate of fair value (CA$68.48)

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.


Discover undervalued companies

Future Growth

How is Canadian Western Bank forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWB's forecast earnings growth (7.2% per year) is above the savings rate (1.6%).

Earnings vs Market: CWB's earnings (7.2% per year) are forecast to grow slower than the Canadian market (7.6% per year).

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

Revenue vs Market: CWB's revenue (8.7% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: CWB's revenue (8.7% 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%).


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


8.4%

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 (32.2%) are higher than last year (32.2%).


Past Earnings Growth Analysis

Earnings Trend: CWB's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: CWB's earnings growth over the past year (10.6%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: CWB earnings growth over the past year (10.6%) exceeded the Banks industry 9.3%.


Return on Equity

High ROE: CWB's Return on Equity (9.6%) 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 (10.8x) is moderate.

Allowance for Bad Loans: CWB has a low allowance for bad loans (86%).

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 (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 (0.5%).


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


5.56%

Current Dividend Yield

Dividend Yield vs Market

Canadian Western Bank Dividend Yield vs Market
How does Canadian Western Bank dividend yield compare to the market?
SegmentDividend Yield
Company (Canadian Western Bank)5.6%
Market Bottom 25% (CA)2.1%
Market Top 25% (CA)6.1%
Industry Average (Banks)4.6%
Analyst forecast in 3 Years (Canadian Western Bank)5.8%

Notable Dividend: CWB's dividend (5.56%) is higher than the bottom 25% of dividend payers in the Canadian market (2.05%).

High Dividend: CWB's dividend (5.56%) is low compared to the top 25% of dividend payers in the Canadian market (5.95%).


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 (32.6%), 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 (34.1% payout ratio).


Discover strong dividend paying companies

Management

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

6.5yrs

Average management tenure


CEO

Chris Fowler (62 yo)

10.08yrs

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

Chris Fowler's Compensation vs Canadian Western Bank Earnings
How has Chris Fowler's remuneration changed compared to Canadian Western Bank's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

CA$333m

Apr 30 2022n/an/a

CA$338m

Jan 31 2022n/an/a

CA$336m

Oct 31 2021CA$3mCA$800k

CA$327m

Jul 31 2021n/an/a

CA$301m

Apr 30 2021n/an/a

CA$277m

Jan 31 2021n/an/a

CA$256m

Oct 31 2020CA$3mCA$796k

CA$249m

Jul 31 2020n/an/a

CA$253m

Apr 30 2020n/an/a

CA$262m

Jan 31 2020n/an/a

CA$272m

Oct 31 2019CA$3mCA$774k

CA$267m

Jul 31 2019n/an/a

CA$264m

Apr 30 2019n/an/a

CA$255m

Jan 31 2019n/an/a

CA$254m

Oct 31 2018CA$3mCA$755k

CA$249m

Jul 31 2018n/an/a

CA$246m

Apr 30 2018n/an/a

CA$240m

Jan 31 2018n/an/a

CA$227m

Oct 31 2017CA$2mCA$736k

CA$214m

Jul 31 2017n/an/a

CA$201m

Apr 30 2017n/an/a

CA$191m

Jan 31 2017n/an/a

CA$175m

Oct 31 2016CA$2mCA$713k

CA$178m

Jul 31 2016n/an/a

CA$183m

Apr 30 2016n/an/a

CA$188m

Jan 31 2016n/an/a

CA$208m

Oct 31 2015CA$2mCA$675k

CA$208m

Compensation vs Market: Chris's total compensation ($USD2.28M) is about average for companies of similar size in the Canadian market ($USD2.37M).

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 (6.5 years average tenure).


Board Members

Experienced Board: CWB's board of directors are considered experienced (8.5 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

TSX:CWB Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Sep 22BuyCA$6,905James ComstockIndividual280CA$24.66
02 Sep 22BuyCA$29,951Robin RuddIndividual1,225CA$24.45
31 Aug 22BuyCA$24,780Maria FilippelliIndividual1,000CA$24.78
29 Jul 22BuyCA$207,018Irfhan RawjiIndividual8,000CA$25.88
26 Jul 22SellCA$40,800Darrell JonesIndividual1,600CA$25.50
14 Jul 22BuyCA$8,455Trent EricksonIndividual350CA$24.16
04 Jul 22BuyCA$9,986Marie DelormeIndividual380CA$26.28
28 Jun 22BuyCA$29,592Ian ReidIndividual1,125CA$26.31
23 Jun 22BuyCA$20,523Trent EricksonIndividual785CA$26.70
16 Jun 22BuyCA$132,375Stephen H. MurphyIndividual5,000CA$26.48
16 Jun 22BuyCA$50,107Christopher FowlerIndividual1,890CA$26.52
15 Jun 22BuyCA$99,994Darrell JonesIndividual3,584CA$27.90
09 Jun 22BuyCA$39,947Marie DelormeIndividual1,355CA$30.48
03 Jun 22BuyCA$26,118Robin RuddIndividual860CA$30.37
31 May 22BuyCA$69,137Jeffrey WrightIndividual2,275CA$30.39
20 Apr 22SellCA$44,975Niall BolesIndividual1,300CA$34.60
11 Apr 22SellCA$43,250Trent EricksonIndividual1,242CA$34.83
07 Apr 22BuyCA$9,006James ComstockIndividual260CA$34.64
08 Mar 22SellCA$31,880James ComstockIndividual878CA$36.31
03 Mar 22SellCA$107,310Darrell JonesIndividual2,854CA$37.60
18 Jan 22SellCA$104,650Blaine ForerIndividual2,600CA$40.25
17 Jan 22SellCA$607,728Stephen H. MurphyIndividual15,000CA$40.52
17 Jan 22SellCA$906,631Daryl MacLellanIndividual22,300CA$40.66
13 Jan 22SellCA$217,055Kirby HillIndividual5,370CA$40.42
22 Dec 21BuyCA$19,988Robin RuddIndividual560CA$35.69
08 Dec 21BuyCA$29,648Robin RuddIndividual800CA$37.06
28 Oct 21SellCA$50,872Supriya JamesIndividual1,275CA$39.90
26 Oct 21SellCA$99,175M. EastwoodIndividual2,500CA$39.67
26 Oct 21SellCA$104,069Niall BolesIndividual2,628CA$39.60
20 Oct 21SellCA$30,225Vladimir AhmadIndividual775CA$39.00
18 Oct 21SellCA$195,915M. EastwoodIndividual5,000CA$39.18
13 Oct 21SellCA$74,440Patrick GallagherIndividual1,930CA$38.57
07 Oct 21SellCA$75,980J. BowlingIndividual2,000CA$37.99

Ownership Breakdown

What is the ownership structure of CWB?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders711,4590.8%
Private Companies1,905,0302.0%
Institutions30,803,40433.1%
General Public59,567,69864.1%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Top 25 shareholders own 31.63% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
4.16%
Dimensional Fund Advisors LP
3,863,662CA$86.2m0.27%0.02%
3.33%
The Vanguard Group, Inc.
3,098,860CA$69.1m1.25%no data
2.36%
BlackRock, Inc.
2,198,321CA$49.0m3.26%no data
2.21%
QV Investors Inc.
2,050,589CA$45.7m0%1.43%
2.03%
Cathton Investments Ltd.
1,884,922CA$42.0m0%no data
1.79%
RBC Global Asset Management Inc.
1,668,812CA$37.2m0%0.02%
1.67%
CI Global Asset Management
1,556,004CA$34.7m0.01%0.06%
1.42%
Industrial Alliance Investment Management Inc.
1,317,003CA$29.4m0%0.29%
1.3%
Leith Wheeler Investment Counsel Ltd.
1,206,635CA$26.9m-24.8%0.64%
1.22%
1832 Asset Management L.P.
1,137,408CA$25.4m7.96%0.03%
1.12%
Franklin Resources, Inc.
1,042,926CA$23.3m2.25%0.01%
1.07%
AGF Management Limited
998,051CA$22.3m-15.34%0.11%
1.05%
Norges Bank Investment Management
975,620CA$21.8m0%no data
1.04%
IG Investment Management, Ltd.
962,588CA$21.5m0%0.05%
0.91%
Fidelity International Ltd
843,014CA$18.8m0%0.01%
0.78%
Connor, Clark & Lunn Investment Management Ltd.
720,671CA$16.1m-0.01%0.07%
0.58%
Beutel Goodman & Company Ltd.
535,520CA$11.9m0.48%0.05%
0.57%
Mackenzie Financial Corporation
530,240CA$11.8m46.28%0.01%
0.57%
Fiera Capital Corporation
526,910CA$11.8m1.87%0.01%
0.52%
Wasatch Advisors Inc
482,222CA$10.8m-7.94%0.04%
0.45%
American Century Investment Management Inc
415,037CA$9.3m16.03%0.01%
0.42%
Heartland Advisors, Inc.
388,000CA$8.7m-22.4%0.47%
0.4%
Picton Mahoney Asset Management
370,386CA$8.3m0%0.2%
0.36%
Manulife Asset Management
335,869CA$7.5m-3.59%0.01%
0.33%
Pembroke Management Ltd.
302,206CA$6.7m-19.05%0.46%

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$2.074b
  • Shares outstanding: 92.99m
  • 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.PRDTSX (The Toronto Stock Exchange)NON CUM SER 9CACADJan 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/07/31
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.