TSX:LB

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Laurentian Bank of Canada

Market Cap

CA$1.8b

Last Updated

2021/08/02 22:05 UTC

Data Sources

Company Financials +

Executive Summary

Laurentian Bank of Canada, together with its subsidiaries, provides various financial services to individuals, business, and institutional customers in Canada and the United States. More Details


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Laurentian Bank of Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: LB's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

LB

0.1%

CA Banks

1.1%

CA Market


1 Year Return

59.7%

LB

44.7%

CA Banks

29.1%

CA Market

Return vs Industry: LB exceeded the Canadian Banks industry which returned 44.7% over the past year.

Return vs Market: LB exceeded the Canadian Market which returned 29.1% over the past year.


Shareholder returns

LBIndustryMarket
7 Day0.7%0.1%1.1%
30 Day-3.4%-1.8%-0.5%
90 Day-0.7%4.0%3.3%
1 Year67.2%59.7%51.0%44.7%33.0%29.1%
3 Year5.9%-11.0%32.3%15.7%31.5%18.7%
5 Year12.6%-13.7%80.0%45.6%50.7%28.5%

Long-Term Price Volatility Vs. Market

How volatile is Laurentian Bank of Canada's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Laurentian Bank of Canada undervalued compared to its fair value and its price relative to the market?

11.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LB (CA$42.4) is trading above our estimate of fair value (CA$38.45)

Significantly Below Fair Value: LB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LB is good value based on its PE Ratio (11.5x) compared to the Canadian Banks industry average (12.4x).

PE vs Market: LB is good value based on its PE Ratio (11.5x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LB is good value based on its PB Ratio (0.7x) compared to the CA Banks industry average (1.6x).


Future Growth

How is Laurentian Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LB's forecast earnings growth (8% per year) is above the savings rate (1.5%).

Earnings vs Market: LB's earnings (8% per year) are forecast to grow slower than the Canadian market (14.1% per year).

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

Revenue vs Market: LB's revenue (4% per year) is forecast to grow slower than the Canadian market (5.3% per year).

High Growth Revenue: LB's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LB's Return on Equity is forecast to be low in 3 years time (7.2%).


Past Performance

How has Laurentian Bank of Canada performed over the past 5 years?

-1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LB has high quality earnings.

Growing Profit Margin: LB's current net profit margins (17.2%) are higher than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: LB's earnings have declined by 1.2% per year over the past 5 years.

Accelerating Growth: LB's earnings growth over the past year (35.2%) exceeds its 5-year average (-1.2% per year).

Earnings vs Industry: LB earnings growth over the past year (35.2%) exceeded the Banks industry 24.1%.


Return on Equity

High ROE: LB's Return on Equity (6.3%) is considered low.


Financial Health

How is Laurentian Bank of Canada'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: LB's Assets to Equity ratio (16.5x) is moderate.

Allowance for Bad Loans: LB has a low allowance for bad loans (70%).

Low Risk Liabilities: 55% of LB's liabilities are made up of primarily low risk sources of funding.

Loan Level: LB has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: LB's Loans to Deposits ratio (143%) is high.

Level of Bad Loans: LB has an appropriate level of bad loans (0.8%).


Dividend

What is Laurentian Bank of Canada current dividend yield, its reliability and sustainability?

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LB's dividend (3.77%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: LB's dividend (3.77%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


Stability and Growth of Payments

Stable Dividend: LB's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), LB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LB's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Rania Llewellyn (44 yo)

0.83

Tenure

CA$3,002,680

Compensation

Ms. Rania Llewellyn has been President, Chief Executive Officer and Director of Laurentian Bank of Canada since October 30, 2020. Ms. Llewellyn served as an Executive Vice President of Global Corporate Pay...


CEO Compensation Analysis

Compensation vs Market: Rania's total compensation ($USD2.40M) is about average for companies of similar size in the Canadian market ($USD2.07M).

Compensation vs Earnings: Insufficient data to compare Rania's compensation with company performance.


Leadership Team

Experienced Management: LB's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: LB's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LB insiders have sold more shares than they have bought 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

Laurentian Bank of Canada's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laurentian Bank of Canada
  • Ticker: LB
  • Exchange: TSX
  • Founded: 1846
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$1.841b
  • Shares outstanding: 43.43m
  • Website: https://www.lbcfg.ca

Number of Employees


Location

  • Laurentian Bank of Canada
  • 1360 René-Lévesque Boulevard West
  • Suite 600
  • Montréal
  • Quebec
  • H3G 0E5
  • Canada

Listings


Biography

Laurentian Bank of Canada, together with its subsidiaries, provides various financial services to individuals, business, and institutional customers in Canada and the United States. It operates through Per...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:05
End of Day Share Price2021/07/30 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.