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NA

National Bank of CanadaTSX:NA Stock Report

Last Price

CA$97.25

Market Cap

CA$32.9b

7D

-5.0%

1Y

32.6%

Updated

25 Jan, 2022

Data

Company Financials +
NA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

NA Stock Overview

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally.

National Bank of Canada Competitors

Royal Bank of Canada

TSX:RY

CA$204.2b

Toronto-Dominion Bank

TSX:TD

CA$180.8b

Bank of Nova Scotia

TSX:BNS

CA$107.4b

Bank of Montreal

TSX:BMO

CA$92.1b

Price History & Performance

Summary of all time highs, changes and price drops for National Bank of Canada
Historical stock prices
Current Share PriceCA$97.25
52 Week HighCA$106.10
52 Week LowCA$71.57
Beta1.12
1 Month Change-0.11%
3 Month Change-5.89%
1 Year Change32.62%
3 Year Change58.62%
5 Year Change73.13%
Change since IPO1,456.00%

Recent News & Updates

Dec 19
National Bank of Canada (TSE:NA) Is Increasing Its Dividend To CA$0.87

National Bank of Canada (TSE:NA) Is Increasing Its Dividend To CA$0.87

National Bank of Canada ( TSE:NA ) has announced that it will be increasing its dividend on the 1st of February to...

Dec 05
National Bank of Canada's (TSE:NA) Dividend Will Be Increased To CA$0.87

National Bank of Canada's (TSE:NA) Dividend Will Be Increased To CA$0.87

The board of National Bank of Canada ( TSE:NA ) has announced that it will be increasing its dividend by 23% on the 1st...

Oct 21
Does National Bank of Canada (TSE:NA) Deserve A Spot On Your Watchlist?

Does National Bank of Canada (TSE:NA) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

NACA BanksCA Market
7D-5.0%-4.6%-4.3%
1Y32.6%35.4%15.0%

Return vs Industry: NA underperformed the Canadian Banks industry which returned 35.4% over the past year.

Return vs Market: NA exceeded the Canadian Market which returned 15% over the past year.

Price Volatility

Is NA's price volatile compared to industry and market?
NA volatility
NA Average Weekly Movement2.5%
Banks Industry Average Movement2.6%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.4%
10% least volatile stocks in CA Market3.7%

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

Volatility Over Time: NA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185926,920Laurent Ferreirahttps://www.nbc.ca

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International.

National Bank of Canada Fundamentals Summary

How do National Bank of Canada's earnings and revenue compare to its market cap?
NA fundamental statistics
Market CapCA$32.88b
Earnings (TTM)CA$3.05b
Revenue (TTM)CA$8.93b

10.8x

P/E Ratio

1.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NA income statement (TTM)
RevenueCA$8.93b
Cost of RevenueCA$0
Gross ProfitCA$8.93b
ExpensesCA$5.87b
EarningsCA$3.05b

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

Feb 25, 2022

Earnings per share (EPS)9.03
Gross Margin100.00%
Net Profit Margin34.22%
Debt/Equity Ratio200.8%

How did NA perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

31%

Payout Ratio

Valuation

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

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NA (CA$97.25) is trading below our estimate of fair value (CA$166.44)

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


Price To Earnings Ratio

PE vs Industry: NA is good value based on its PE Ratio (10.8x) compared to the Canadian Banks industry average (12.3x).

PE vs Market: NA is good value based on its PE Ratio (10.8x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: NA is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: NA is overvalued based on its PB Ratio (1.9x) compared to the CA Banks industry average (1.7x).


Future Growth

How is National Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NA's forecast earnings growth (3.2% per year) is above the savings rate (1.6%).

Earnings vs Market: NA's earnings (3.2% per year) are forecast to grow slower than the Canadian market (10.9% per year).

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

Revenue vs Market: NA's revenue (6.7% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: NA's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NA's Return on Equity is forecast to be low in 3 years time (16.4%).


Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NA has high quality earnings.

Growing Profit Margin: NA's current net profit margins (34.2%) are higher than last year (27.2%).


Past Earnings Growth Analysis

Earnings Trend: NA's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: NA's earnings growth over the past year (58.8%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: NA earnings growth over the past year (58.8%) exceeded the Banks industry 41.4%.


Return on Equity

High ROE: NA's Return on Equity (16.8%) is considered low.


Financial Health

How is National 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: NA's Assets to Equity ratio (18.9x) is moderate.

Allowance for Bad Loans: NA has a sufficient allowance for bad loans (151%).

Low Risk Liabilities: 72% of NA's liabilities are made up of primarily low risk sources of funding.

Loan Level: NA has an appropriate level of Loans to Assets ratio (49%).

Low Risk Deposits: NA's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: NA has an appropriate level of bad loans (0.4%).


Dividend

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

3.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NA's dividend (3.58%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: NA's dividend (3.58%) is low compared to the top 25% of dividend payers in the Canadian market (4.88%).


Stability and Growth of Payments

Stable Dividend: NA's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), NA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NA's dividends in 3 years are forecast to be well covered by earnings (41.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Laurent Ferreira (50 yo)

0.17

Tenure

CA$5,915,848

Compensation

Mr. Laurent Ferreira serves as President and Chief Executive Officer at National Bank of Canada since November 1, 2021. He served as Chief Operating Officer at National Bank of Canada since February 1, 202...


CEO Compensation Analysis

Compensation vs Market: Laurent's total compensation ($USD4.67M) is about average for companies of similar size in the Canadian market ($USD6.14M).

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


Leadership Team

Experienced Management: NA's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: NA's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NA 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

National Bank of Canada's employee growth, exchange listings and data sources


Key Information

  • Name: National Bank of Canada
  • Ticker: NA
  • Exchange: TSX
  • Founded: 1859
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: CA$32.878b
  • Shares outstanding: 338.08m
  • Website: https://www.nbc.ca

Number of Employees


Location

  • National Bank of Canada
  • 600 De La Gauchetière Street West
  • 4th Floor
  • Montreal
  • Quebec
  • H3B 4L2
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/25 06:27
End of Day Share Price2022/01/24 00:00
Earnings2021/10/31
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.