OTCPK:CBWB.F

Stock Analysis Report

Canadian Western Bank

Executive Summary

Canadian Western Bank provides personal and business banking products and services primarily in Western Canada.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Canadian Western Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBWB.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CBWB.F

-0.3%

US Banks

0.06%

US Market


1 Year Return

9.2%

CBWB.F

11.1%

US Banks

19.3%

US Market

Return vs Industry: CBWB.F underperformed the US Banks industry which returned 11.1% over the past year.

Return vs Market: CBWB.F underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

CBWB.FIndustryMarket
7 Day0%-0.3%0.06%
30 Day-2.6%-0.5%1.7%
90 Day-7.4%0.6%9.0%
1 Year13.2%9.2%14.4%11.1%21.8%19.3%
3 Year20.0%8.8%24.7%15.7%49.5%39.9%
5 Year26.9%8.0%74.9%55.1%73.1%54.1%

Price Volatility Vs. Market

How volatile is Canadian Western Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Canadian Western Bank undervalued compared to its fair value and its price relative to the market?

26.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBWB.F ($25.07) is trading below our estimate of fair value ($33.89)

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


Price To Earnings Ratio

PE vs Industry: CBWB.F is good value based on its PE Ratio (10.7x) compared to the Banks industry average (12.6x).

PE vs Market: CBWB.F is good value based on its PE Ratio (10.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CBWB.F is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CBWB.F is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Canadian Western Bank forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBWB.F's forecast earnings growth (7.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CBWB.F's earnings (7.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CBWB.F's revenue (9.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CBWB.F's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBWB.F's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Canadian Western Bank performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBWB.F has a high level of non-cash earnings.

Growing Profit Margin: CBWB.F's current net profit margins (33.2%) are higher than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: CBWB.F's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: CBWB.F's earnings growth over the past year (7.1%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: CBWB.F earnings growth over the past year (7.1%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: CBWB.F's Return on Equity (9.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canadian Western Bank'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

Inventory Level: CBWB.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBWB.F's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: CBWB.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CBWB.F has a low allowance for bad loans.

Low Risk Liabilities: CBWB.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: CBWB.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CBWB.F's loans are broadly funded by customer deposits.

Level of Bad Loans: CBWB.F has an appropriate level of bad loans (0.52%)


Next Steps

Dividend

What is Canadian Western Bank's current dividend yield, its reliability and sustainability?

3.42%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: CBWB.F's dividend (3.42%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CBWB.F's dividend (3.42%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.4%), CBWB.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBWB.F's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Chris Fowler (59yo)

6.9yrs

Tenure

CA$2,780,058

Compensation

Mr. Christopher H. Fowler, also known as Chris, M.A., is President, Chief Executive Officer and Director of Canadian Western Bank (“CWB” or “CWB Group"). He has served at CWB in roles with increasing respo ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.10M) is below average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Fowler
President6.9yrsCA$2.78m0.13% CA$2.8m
Carolyn Graham
Executive VP & CFO5.3yrsCA$1.03m0.043% CA$939.7k
Kelly Blackett
Executive Vice President of Human Resources & Corporate Communications5.3yrsCA$846.66k0.015% CA$319.4k
H. Ozdemir
Executive VP & Chief Risk Officer5.2yrsCA$845.64k0.016% CA$352.5k
Stephen H. Murphy
Executive Vice President of Banking3.9yrsCA$1.17m0.0059% CA$126.9k
Vladimir Ahmad
Senior Vice President of Operations & Business Transformation3.1yrsno data0.0018% CA$38.1k
Allen Stephen
VP & Chief Accountant12.1yrsno datano data
Darrell Jones
Executive VP & Chief Information Officer11.5yrsno data0.018% CA$399.6k
Bindu Cudjoe
Senior VP0yrsno datano data
Keith Hughes
Senior Vice President of Sales0yrsno datano data

5.3yrs

Average Tenure

Experienced Management: CBWB.F's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Fowler
President6.9yrsCA$2.78m0.13% CA$2.8m
Robert Phillips
Independent Chairman of the Board0yrsCA$279.50k0.041% CA$885.9k
H. Riley
Independent Director8.9yrsCA$141.50k0.015% CA$324.6k
Robert Manning
Independent Director34.1yrsCA$151.50k0.044% CA$952.5k
Alan Rowe
Independent Director23.6yrsCA$154.50k0.026% CA$570.0k
Linda Margaret Hohol
Independent Director8.7yrsCA$155.50k0.011% CA$235.0k
Sarah Morgan-Silvester
Independent Director5.9yrsCA$159.00k0.013% CA$288.7k
Raymond Protti
Independent Director10.9yrsCA$141.00k0.020% CA$437.9k
Andrew Bibby
Independent Director7.2yrsCA$149.00k0.012% CA$265.3k
Ian Reid
Independent Director8.9yrsCA$173.50k0.012% CA$264.4k

8.9yrs

Average Tenure

65yo

Average Age

Experienced Board: CBWB.F's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CBWB.F 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

Canadian Western Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canadian Western Bank
  • Ticker: CBWB.F
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CA$2.868b
  • Listing Market Cap: CA$2.162b
  • Shares outstanding: 87.26m
  • Website: https://www.cwbank.com

Number of Employees


Location

  • Canadian Western Bank
  • 10303 Jasper Avenue NW
  • Suite 3000
  • Edmonton
  • Alberta
  • T5J 3X6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWBTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1984
C7WDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1984
CBWB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1984
CWB.PRBTSX (The Toronto Stock Exchange)PFD 5YR 1ST SER5CACADFeb 2014
CWB.PRCTSX (The Toronto Stock Exchange)1ST PFD SER 7CACADApr 2016
CWB.PRDTSX (The Toronto Stock Exchange)NON CUM SER 9CACADJan 2019

Biography

Canadian Western Bank provides personal and business banking products and services primarily in Western Canada. The company offers current, savings, cash management, US dollar, senior, chequing, youth, and student accounts, as well as specialized accounts, including corporate and commercial, organization, strata solution/condo, general trust, and trust fund investment accounts. It also provides leading products, such as commercial lending and real estate, and equipment financing and leasing products; loans and mortgages; secured and unsecured lines of credit; registered retirement savings plan (RRSP), consolidation, vehicle, and recreation vehicle loans; personal lines of credit; and credit cards. In addition, the company offers cash management services; life and disability insurance products, home equity lines of credit, personal lines of credit, and business lines of credit; and ATM, telephone, mobile, and online banking services, as well as deposit register and cheque order services. Further, it provides investment products comprising guaranteed investment certificates, RRSPs, registered retirement income funds, tax-free savings accounts, registered education savings plans, and mutual funds, as well as personal and business planning services. The company was founded in 1984 and is headquartered in Edmonton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:22
End of Day Share Price2020/02/13 00:00
Earnings2019/10/31
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.