OTCPK:LRCD.F

Stock Analysis Report

Laurentian Bank of Canada

Executive Summary

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.

Rewards

PE ratio (10.8x) is below the US market (18.4x)

Earnings are forecast to grow 9.22% per year

Pays a high and reliable dividend of 6.16%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer with adequate balance sheet.


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: LRCD.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

LRCD.F

2.7%

US Banks

1.1%

US Market


1 Year Return

14.1%

LRCD.F

22.7%

US Banks

17.8%

US Market

Return vs Industry: LRCD.F underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: LRCD.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

LRCD.FIndustryMarket
7 Day-2.1%2.7%1.1%
30 Day-6.8%0.9%1.4%
90 Day-3.1%10.0%3.9%
1 Year21.4%14.1%26.3%22.7%20.3%17.8%
3 Year-6.5%-20.3%31.8%22.6%44.8%35.4%
5 Year2.1%-20.6%80.2%60.2%71.3%52.4%

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?

10.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LRCD.F ($33) is trading above our estimate of fair value ($25.83)

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


Price To Earnings Ratio

PE vs Industry: LRCD.F is good value based on its PE Ratio (10.8x) compared to the Banks industry average (12.7x).

PE vs Market: LRCD.F is good value based on its PE Ratio (10.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: LRCD.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: LRCD.F is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Laurentian Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRCD.F's forecast earnings growth (9.2% per year) is above the savings rate (1.7%).

Earnings vs Market: LRCD.F's earnings (9.2% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: LRCD.F's revenue (3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: LRCD.F's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LRCD.F's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

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

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRCD.F has high quality earnings.

Growing Profit Margin: LRCD.F's current net profit margins (18.1%) are lower than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: LRCD.F's earnings have grown by 12.6% per year over the past 5 years.

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

Earnings vs Industry: LRCD.F had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: LRCD.F's Return on Equity (7.1%) is considered low.


Return on Assets


Return on Capital Employed


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

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

Debt Coverage by Assets: LRCD.F's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

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

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

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

Low Risk Deposits: LRCD.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: LRCD.F has an appropriate level of bad loans (0.59%)


Next Steps

Dividend

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

6.16%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Laurentian Bank of Canada before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: LRCD.F's dividend (6.16%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: LRCD.F's dividend (6.16%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.8%), LRCD.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LRCD.F's dividends in 3 years are forecast to be covered by earnings (60% payout ratio).


Next Steps

Management

What is the CEO of Laurentian Bank of Canada's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

François Desjardins (48yo)

4.1yrs

Tenure

CA$3,611,892

Compensation

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 Ca ...


CEO Compensation Analysis

Compensation vs Market: François's total compensation ($USD2.73M) is below average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

4.2yrs

Average Tenure

Experienced Management: LRCD.F's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: LRCD.F's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$48,64009 Sep 19
Andrea Bolger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,490
Max PriceCA$32.64

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • François Laurin (59yo)

    Executive VP of Finance

    • Tenure: 4.3yrs
    • Compensation: CA$1.33m
  • François Desjardins (48yo)

    President

    • Tenure: 4.1yrs
    • Compensation: CA$3.61m
  • Rick Lane

    SVP of Real Estate Financing and VP of Real Estate Financing - Ontario & Western Canada

    • Tenure: 0yrs
  • André Lopresti

    Senior VP & Chief Accountant

    • Tenure: 0yrs
  • Stéphane Therrien

    Executive Vice President of Personal & Commercial Banking

    • Tenure: 4.5yrs
    • Compensation: CA$1.75m
  • Claude Jobin

    Chief Accountant & VP of Commercial Credit

    • Tenure: 0yrs
  • Deborah Rose

    Executive VP

    • Tenure: 1.5yrs
    • Compensation: CA$1.75m
  • Helene Soulard

    Assistant Vice President of Communications

    • Tenure: 0yrs
  • Susan Cohen

    Director of Investor Relations

    • Tenure: 0yrs
  • Emmanuela Fleurandin

    Senior Legal Counsel & Assistant Secretary

    • Tenure: 0yrs

Board Members

  • Michael Boychuk (63yo)

    Independent Corporate Director

    • Tenure: 6.3yrs
    • Compensation: CA$148.78k
  • Sonia Baxendale (57yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$111.50k
  • Mike Mueller (60yo)

    Independent Chairman

    • Tenure: 0.7yrs
  • Andrea Bolger (61yo)

    Independent Director

    • Tenure: 0.3yrs
  • Lise Bastarache (55yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$111.50k
  • François Desjardins (48yo)

    President

    • Tenure: 4.1yrs
    • Compensation: CA$3.61m
  • Susan Jenah (63yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: CA$113.35k
  • A. Lavigne (69yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: CA$136.68k
  • Michelle Savoy (59yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: CA$120.60k
  • David Morris (64yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: CA$113.35k

Company Information

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


Key Information

  • Name: Laurentian Bank of Canada
  • Ticker: LRCD.F
  • Exchange: OTCPK
  • Founded: 1846
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CA$1.854b
  • Listing Market Cap: CA$1.401b
  • Shares outstanding: 42.62m
  • 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 banking services to individuals, small and medium-sized enterprises, and independent advisors in Canada and the United States. It operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:31
End of Day Share Price2019/12/09 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.