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NA

National Bank of Canada TSX:NA Stock Report

Last Price

CA$91.60

Market Cap

CA$30.8b

7D

0.7%

1Y

-6.6%

Updated

10 Aug, 2022

Data

Company Financials +
NA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
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

Price History & Performance

Summary of all time highs, changes and price drops for National Bank of Canada
Historical stock prices
Current Share PriceCA$91.60
52 Week HighCA$106.10
52 Week LowCA$82.38
Beta1.12
1 Month Change5.34%
3 Month Change3.14%
1 Year Change-6.56%
3 Year Change50.16%
5 Year Change64.54%
Change since IPO1,365.60%

Recent News & Updates

Jul 26
Do National Bank of Canada's (TSE:NA) Earnings Warrant Your Attention?

Do National Bank of Canada's (TSE:NA) Earnings Warrant Your Attention?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Jun 03
National Bank of Canada's (TSE:NA) Upcoming Dividend Will Be Larger Than Last Year's

National Bank of Canada's (TSE:NA) Upcoming Dividend Will Be Larger Than Last Year's

National Bank of Canada ( TSE:NA ) will increase its dividend on the 1st of August to CA$0.92. This takes the annual...

Shareholder Returns

NACA BanksCA Market
7D0.7%0.8%1.9%
1Y-6.6%-3.6%-1.1%

Return vs Industry: NA underperformed the Canadian Banks industry which returned -4.7% over the past year.

Return vs Market: NA underperformed the Canadian Market which returned -2% over the past year.

Price Volatility

Is NA's price volatile compared to industry and market?
NA volatility
NA Average Weekly Movement3.4%
Banks Industry Average Movement3.1%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.4%
10% least volatile stocks in CA Market4.3%

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
185928,189Laurent 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$30.82b
Earnings (TTM)CA$3.33b
Revenue (TTM)CA$9.45b

9.2x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NA income statement (TTM)
RevenueCA$9.45b
Cost of RevenueCA$0
Gross ProfitCA$9.45b
Other ExpensesCA$6.12b
EarningsCA$3.33b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)9.91
Gross Margin100.00%
Net Profit Margin35.26%
Debt/Equity Ratio220.9%

How did NA perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 NA?

Other financial metrics that can be useful for relative valuation.

NA 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 Ratio-9x

Price to Earnings Ratio vs Peers

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

NA PE Ratio vs Peers
The above table shows the PE ratio for NA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.1x
CM Canadian Imperial Bank of Commerce
9.3x8.7%CA$59.5b
BMO Bank of Montreal
7.3x-6.8%CA$86.8b
BNS Bank of Nova Scotia
9.4x2.5%CA$94.8b
TD Toronto-Dominion Bank
10.4x2.4%CA$152.8b
NA National Bank of Canada
9.2x-1.0%CA$30.8b

Price-To-Earnings vs Peers: NA is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: NA is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the Canadian Banks industry average (9.2x)


Price to Earnings Ratio vs Fair Ratio

What is NA'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.

NA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.2x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: NA is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).


Share Price vs Fair Value

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

Below Fair Value: NA (CA$91.6) is trading below our estimate of fair value (CA$200.55)

Significantly Below Fair Value: NA 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 less than 20% higher than the current share price.


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Future Growth

How is National Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NA's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: NA's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: NA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NA's revenue (4.2% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: NA's revenue (4.2% 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 (17.2%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NA has high quality earnings.

Growing Profit Margin: NA's current net profit margins (35.3%) are higher than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: NA's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: NA's earnings growth over the past year (32.5%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: NA earnings growth over the past year (32.5%) exceeded the Banks industry 20.1%.


Return on Equity

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


Discover strong past performing companies

Financial Health

How is National Bank of Canada's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • 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: NA's Assets to Equity ratio (18.1x) is moderate.

Allowance for Bad Loans: NA has a sufficient allowance for bad loans (150%).

Low Risk Liabilities: 71% 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 (51%).

Low Risk Deposits: NA's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: NA has an appropriate level of bad loans (0.3%).


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Dividend

What is National Bank of Canada 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


4.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NA's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Canadian market (1.93%).

High Dividend: NA's dividend (4.02%) is low compared to the top 25% of dividend payers in the Canadian market (5.39%).


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

Earnings Coverage: With its reasonably low payout ratio (32%), 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 (40.1% payout ratio).


Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure


CEO

Laurent Ferreira (51 yo)

0.75

Tenure

CA$8,969,311

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 ($USD7.03M) is about average for companies of similar size in the Canadian market ($USD8.23M).

Compensation vs Earnings: Laurent's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NA's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: NA's board of directors are considered experienced (7.5 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$30.819b
  • Shares outstanding: 336.46m
  • 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 Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 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.