DB:LT7

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Laurentian Bank of Canada

Executive Summary

Laurentian Bank of Canada, together with its subsidiaries, provides various banking services to individuals, small and medium-sized enterprises, and institutional customers in Canada and the United States.


Snowflake Analysis

Adequate balance sheet and fair value.


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: LT7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

LT7

6.0%

DE Banks

2.6%

DE Market


1 Year Return

-44.3%

LT7

-1.3%

DE Banks

8.1%

DE Market

Return vs Industry: LT7 underperformed the German Banks industry which returned -3.8% over the past year.

Return vs Market: LT7 underperformed the German Market which returned 6.4% over the past year.


Shareholder returns

LT7IndustryMarket
7 Day0%6.0%2.6%
30 Day-7.7%2.8%0.6%
90 Day-13.8%40.0%11.5%
1 Year-40.5%-44.3%-1.3%-1.3%10.5%8.1%
3 Year-43.6%-52.8%-46.2%-48.2%6.3%-2.1%
5 Year-32.5%-48.5%-34.7%-50.1%15.2%-0.3%

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

No news available

Valuation

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

9.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LT7 (€16.9) is trading above our estimate of fair value (€11.99)

Significantly Below Fair Value: LT7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LT7 is good value based on its PE Ratio (9.9x) compared to the DE Banks industry average (20.9x).

PE vs Market: LT7 is good value based on its PE Ratio (9.9x) compared to the German market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: LT7 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: LT7 is good value based on its PB Ratio (0.5x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

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

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LT7's forecast earnings growth (3% per year) is above the savings rate (0.2%).

Earnings vs Market: LT7's earnings (3% per year) are forecast to grow slower than the German market (23.6% per year).

High Growth Earnings: LT7's earnings are forecast to grow, but not significantly.

Revenue vs Market: LT7's revenue (2.3% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: LT7's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LT7's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LT7 has high quality earnings.

Growing Profit Margin: LT7's current net profit margins (13.5%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: LT7's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: LT7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LT7 had negative earnings growth (-33.4%) over the past year, making it difficult to compare to the Banks industry average (1.4%).


Return on Equity

High ROE: LT7's Return on Equity (5.1%) is considered low.


Next Steps

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: LT7's Assets to Equity ratio (17.7x) is moderate.

Allowance for Bad Loans: LT7 has a low allowance for bad loans (63%).

Low Risk Liabilities: 59% of LT7's liabilities are made up of primarily low risk sources of funding.

Loan Level: LT7 has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: LT7's Loans to Deposits ratio (131%) is high.

Level of Bad Loans: LT7 has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

5.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LT7's dividend (5.88%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: LT7's dividend (5.88%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

Stable Dividend: LT7's dividend payments have been volatile in the past 10 years.

Growing Dividend: LT7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.5%), LT7's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Stéphane Therrien

0.17

Tenure

CA$1,459,534

Compensation

Mr. Stéphane Therrien has been Executive Vice President of Personal and Commercial Banking at Laurentian Bank of Canada since June 04, 2015 and serves as its Interim President and CEO since June 2020. He s ...


CEO Compensation Analysis

Compensation vs Market: Stéphane's total compensation ($USD1.09M) is about average for companies of similar size in the German market ($USD1.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stéphane Therrien
EVP of Personal & Commercial Banking0.17yrCA$1.46m0.0091%
CA$ 67.6k
François Laurin
Executive VP of Finance5yrsCA$1.35m0.0062%
CA$ 45.6k
Deborah Rose
Executive VP2.17yrsCA$1.45m0.0045%
CA$ 33.5k
William Mason
Executive VP & Chief Risk Officer2.17yrsCA$1.34m0.017%
CA$ 122.7k
André Lopresti
Senior VP & Chief Accountantno datano data0.00095%
CA$ 7.0k
Susan Cohen
Director of Investor Relationsno datano datano data
Emmanuela Fleurandin
Senior Legal Counsel & Assistant Secretaryno datano datano data
Helene Soulard
Assistant Vice President of Communicationsno datano datano data
Rick Lane
SVP of Real Estate Financing and VP of Real Estate Financing - Ontario & Western Canadano datano datano data
Claude Jobin
Chief Accountant & VP of Commercial Creditno datano datano data
Éric Provost
Senior Vice-President of Business Services7.83yrsno data0.0034%
CA$ 25.4k
John Penhale
Senior Vice President of Integrated Risk Managementno datano datano data

2.2yrs

Average Tenure

Experienced Management: LT7's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stéphane Therrien
EVP of Personal & Commercial Banking0.17yrCA$1.46m0.0091%
CA$ 67.6k
Michael Boychuk
Independent Director7yrsCA$146.50k0.0033%
CA$ 24.6k
Sonia Baxendale
Independent Director4yrsCA$134.45k0.0054%
CA$ 39.8k
Jonathan Wener
Director Emeritus3.42yrsCA$63.69kno data
Michael Mueller
Independent Chairman of the Board1.33yrsCA$204.24kno data
David Mowat
Independent Director1yrCA$19.45kno data
Andrea Bolger
Independent Director1yrCA$19.45k0.0035%
CA$ 25.7k
Lise Bastarache
Independent Director14.42yrsCA$119.00k0.0096%
CA$ 71.4k
Susan Jenah
Independent Director5.67yrsCA$123.25k0.0029%
CA$ 21.4k
Nicholas Zelenczuk
Independent Director0.25yrno data0.0070%
CA$ 51.8k
Michelle Savoy
Independent Director8.42yrsCA$137.85k0.015%
CA$ 107.8k
David Morris
Independent Director2.83yrsCA$119.04k0.0023%
CA$ 17.3k

3.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LT7'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: LT7 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

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


Key Information

  • Name: Laurentian Bank of Canada
  • Ticker: LT7
  • Exchange: DB
  • Founded: 1846
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$1.169b
  • Listing Market Cap: CA$741.717m
  • Shares outstanding: 42.94m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1983
LT7DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1983
LRCD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1983
LB.PRJTSX (The Toronto Stock Exchange)PFD SHS SER 15CACADMar 2016

Biography

Laurentian Bank of Canada, together with its subsidiaries, provides various banking services to individuals, small and medium-sized enterprises, and institutional customers in Canada and the United States. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 22:33
End of Day Share Price2020/08/07 00:00
Earnings2020/04/30
Annual Earnings2019/10/31


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.