Laurentian Bank of Canada, together with its subsidiaries, provides banking services to individuals, small and medium-sized enterprises, and independent advisors in Canada and the United States.
The last earnings update was 84 days ago.
Discounted Cash Flow Calculation for OTCPK:LRCD.F using Excess Returns Model Model
The calculations below outline how an intrinsic value for Laurentian Bank of Canada is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Laurentian Bank of Canada
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Laurentian Bank of Canada's
is considered below, and whether this is a fair price.
Price based on past earnings
Laurentian Bank of Canada's earnings available for a low price, and how does
this compare to other companies in the same industry?
Laurentian Bank of Canada's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
Laurentian Bank of Canada's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (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.
Laurentian Bank of Canada'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.
Laurentian Bank of Canada
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Laurentian Bank of Canada's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. François Desjardins has been the Chief Executive Officer and President at Laurentian Bank of Canada since November 1, 2015. Mr. Desjardins served as the Chief Operating Officer of Laurentian Bank of Canada from February 26, 2015 to November 1, 2015. Mr. Desjardins served as Chief Executive Officer and President of B2B Bank (formerly, B2B Trust) since 2005 until June 2015. He served as Executive Vice President of Laurentian Bank of Canada from February 28, 2006 to February 2015 and served as its Executive Vice President of Agency Banking. He served as Chief Executive Officer and President of LBC Trust. He served as the Chief Operating Officer of B2B Bank, Inc. since July 1, 2004. He served as a Vice President of Direct Financial Services where he was responsibilities included the Call Centres, the websites, the VISA and client cards, as well as the network. Mr. Desjardins has keen knowledge of Laurentian Bank. He joined B2B Trust in 1991. Mr. Desjardins served as a Vice President of Call Centre and E-Banking Services of Laurentian Bank of Canada. He has been a Director of Laurentian Bank of Canada since November 1, 2015. He serves as a Director of FundSERV Inc. He has a Bachelor of Business Administration Degree from HEC Montreal.
François's compensation has been consistent with company performance over the past year, both up more than 20%.
François's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
Laurentian Bank of Canada
management team in years:
The tenure for the Laurentian Bank of Canada management team is about average.
Executive VP of Finance
Executive Vice President of Personal & Commercial Banking
Senior VP & Chief Accountant
Director of Investor Relations
Senior Legal Counsel & Assistant Secretary
Assistant Vice President of Communications
SVP of Real Estate Financing and VP of Real Estate Financing - Ontario & Western Canada
Chief Accountant & VP of Commercial Credit
Board of Directors Tenure
Average tenure and age of the
Laurentian Bank of Canada
board of directors in years:
The tenure for the Laurentian Bank of Canada board of directors is about average.
Laurentian Bank of Canada, together with its subsidiaries, provides banking services to individuals, small and medium-sized enterprises, and independent advisors in Canada and the United States. It operates through four segments: Retail Services, Business Services, B2B Bank, and Capital Markets. The company offers transactional products and current accounts, term deposits, and investment accounts; personal line of credit, personal loans, student loans, and registered retirement savings plans; financing for agriculture, real estate, and commercial industries, as well as small and medium-sized enterprises; mortgage solutions, such as variable-rate mortgage, fixed-rate mortgage, equity line of credit, mortgage insurance, and retirement line of credit; and credit and business cards, as well as equipment finance solutions. It also provides investment products, including fixed-rate investments, indexed investments, mutual funds, systematic savings plans, retirement projection plans, registered plans, bank securities, deposit-insurance, and power-of-attorneys; short-term and long-term investment solutions; and guaranteed investment certificates, as well as offers credit insurance products. In addition, the company offers leasing solutions, cash management and international services, and electronic banking services. Laurentian Bank of Canada was founded in 1846 and is headquartered in Montréal, Canada.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.