Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Canara Bank. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Canara Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Canara Bank's earnings are expected to grow significantly at over 20% yearly.
Canara Bank's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Canara Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Is Canara Bank (NSE:CANBK) Excessively Paying Its CEO?
Rakesh Sharma is the CEO of Canara Bank (NSE:CANBK), which has recently grown to a market capitalization of ₹184.48b. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … See our latest analysis for Canara Bank
Understated Factors To Consider Before Investing In Canara Bank (NSE:CANBK)
Canara Bank’s (NSE:CANBK) profitability and risk are largely affected by the underlying economic growth for the region it operates in IN given it is a small-cap stock with a market capitalisation of ₹181.48b. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Canara Bank to vulnerabilities. … Low levels of leverage coupled with sufficient liquidity may place Canara Bank in a safe position in the face of adverse headwinds.
Let’s examine Canara Bank’s valuation and outlook in more detail to determine if there’s still a bargain opportunity? … View out our latest analysis for Canara Bank … Can we expect growth from Canara Bank?
Canara Bank (NSE:CANBK): Risks You Need To Consider Before Buying
A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … See our latest analysis for Canara Bank An interpretation of CANBK's beta With a beta of 1.38, Canara Bank is a stock that tends to experience more gains than the market during a growth phase and also a bigger reduction in value compared to the market during a broad downturn. … As a result, the company may be less volatile relative to broad market movements, compared to a company of similar size but higher proportion of fixed assets.
Canara Bank (NSEI:CANBK), operating in the financial services industry based in India, saw a decent share price growth in the teens level on the NSEI over the last few months. … What’s more interesting is that, Canara Bank’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.
Did Canara Bank (NSE:CANBK) Create Value For Investors Over The Past Year?
View our latest analysis for Canara Bank Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Since Canara Bank’s return does not cover its cost, with a difference of -9.93%, this means its current use of equity is not efficient and not sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NSEI:CANBK Last Perf Mar 16th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
What You Should Know About Canara Bank’s (NSE:CANBK) Liquidity
We can gauge Canara Bank’s risk-taking behaviour by analysing three metrics for leverage and liquidity which I will take you through now. … While financial companies will always have some leverage for a sufficient capital buffer, Canara Bank’s leverage ratio of less than the suitable maximum level of 20x, at 17x, is considered to be very cautious and prudent. … Compared to the appropriate industry loan to deposit level of 90%, Canara Bank’s ratio of over 70.42% is sensibly lower and within the safe margin, which positions the bank cautiously in terms of liquidity as it has not disproportionately lent out its deposits and has retained an apt level of deposits.Next Steps: Canara Bank passes all of our liquidity and leverage checks which shows it is prudent in managing those factors.
What Is Canara Bank's (NSE:CANBK) Share Price Doing?
Great news for investors – Canara Bank is still trading at a fairly cheap price. … What’s more interesting is that, Canara Bank’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.
Canara Bank provides various banking products and services in India and internationally. It offers personal banking services, such as savings and deposits comprising re-investment plan, recurring deposits, deposit schemes for senior citizens, current account, and others; loan products, such as housing, home improvement, vehicle, site, teachers, gold, mortgage, housing-cum-solar, consumer, and other loans; life, general, and health insurance products; consultancy services, which cover personal tax assistance and investment counselling, estate and wills services, private and charitable trustee services, debenture and security trusteeship, and attorneyship; and safe deposit lockers, depository, and safe custody services. The company also provides corporate banking products and services, including accounts and deposits, such as current, fixed, and recurring deposits; supply chain finance management; loans and advances comprising working capital finance, term loans, infrastructure financing, and export finance; syndication services; IPO monitoring services; and merchant and commercial banking, escrow bankers/ASBA, underwriting, and investments services. In addition, it offers NRI banking products and services, such as remittance facilities; loans and advances, such as home, home improvement, vehicle, rent, mortgage, and site loans; and investment and online trading facilities. As of March 31, 2018, the company operated 6,212 branches, including 289 specialized branches and 8 overseas branches and 9,395 ATMs. Canara Bank was founded in 1906 and is headquartered in Bengaluru, India.
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