OTCPK:NTIO.F

Stock Analysis Report

National Bank of Canada

Executive Summary

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally.

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has National Bank of Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

OTCPK:NTIO.F

-1.8%

US Banks

0.2%

US Market


1 Year Return

-10.1%

OTCPK:NTIO.F

-15.3%

US Banks

-0.7%

US Market

NTIO.F outperformed the Banks industry which returned -13.6% over the past year.

NTIO.F underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

NTIO.FIndustryMarket
7 Day-0.4%-1.8%0.2%
30 Day-5.6%-6.4%-2.7%
90 Day-1.9%-4.0%1.6%
1 Year-6.1%-10.1%-12.9%-15.3%1.6%-0.7%
3 Year41.3%24.5%41.3%31.7%40.0%30.9%
5 Year20.4%-3.0%50.8%34.5%53.8%36.8%

Price Volatility Vs. Market

How volatile is National 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 National Bank of Canada undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

National Bank of Canada's share price is below the future cash flow value, and at a moderate discount (> 20%).

National Bank of Canada's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

National Bank of Canada is good value based on earnings compared to the US Banks industry average.

National Bank of Canada is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

National Bank of Canada is poor value based on expected growth next year.


Price Based on Value of Assets

National Bank of Canada is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is National Bank of Canada expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

National Bank of Canada's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

National Bank of Canada's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

National Bank of Canada's revenue growth is positive but not above the United States of America market average.

National Bank of Canada's earnings growth is positive but not above the United States of America market average.

National Bank of Canada's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

National Bank of Canada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

National Bank of Canada's year on year earnings growth rate has been positive over the past 5 years.

National Bank of Canada's 1-year earnings growth is less than its 5-year average (5.2% vs 9.6%)

National Bank of Canada's earnings growth has not exceeded the US Banks industry average in the past year (5.2% vs 33.2%).


Return on Equity

National Bank of Canada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

National Bank of Canada used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if National Bank of Canada improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is National 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

Information is not available.

Information is not available.


Financial Institutions Analysis

National Bank of Canada has an acceptable proportion of non-loan assets held.

National Bank of Canada has a sufficient allowance for bad loans.

National Bank of Canada's liabilities are made up of primarily low risk sources of funding.

National Bank of Canada's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at National Bank of Canada are broadly funded by customer deposits.

National Bank of Canada has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

National Bank of Canada's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

National Bank of Canada's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Louis Vachon (56yo)

12.2yrs

Tenure

CA$8,870,286

Compensation

Mr. Louis Vachon, CFA, has been Chief Executive Officer and President at National Bank of Canada since June 01, 2007 and served as its Chief Operating Officer from August 01, 2006 to June 01, 2007. Mr. Vac ...


CEO Compensation Analysis

Louis's remuneration is lower than average for companies of similar size in United States of America.

Louis's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.1yrs

Average Tenure

The average tenure for the National Bank of Canada management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.8yrs

Average Tenure

60.5yo

Average Age

The tenure for the National Bank of Canada board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$1,311,26717 Dec 18
Lino Saputo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceCA$43.71
BuyCA$305,86417 Dec 18
Investissements Quadriam inc.
EntityCompany
Shares7,000
Max PriceCA$43.71

Ownership Breakdown


Management Team

  • Louis Vachon (56yo)

    President

    • Tenure: 12.2yrs
    • Compensation: CA$8.87m
  • Ghislain Parent

    CFO & Executive VP of Finance

    • Tenure: 8.0yrs
    • Compensation: CA$2.43m
  • Nicole Rondou

    Vice President of Compliance

    • Tenure: 0.0yrs
  • Denis Girouard

    Executive VP & Co-Head of Financial Markets

    • Tenure: 3.2yrs
    • Compensation: CA$6.90m
  • Brigitte Hébert

    Executive Vice-President of Employee Experience & Operations

    • Tenure: 4.2yrs
  • Claude Breton

    Vice-President of Public Affairs & Corporate Social Responsibility

    • Tenure: 0.0yrs
  • Martin Gagnon

    Executive VP of Wealth Management & Co-President and Co-CEO of National Bank Financial

    • Tenure: 8.6yrs
    • Compensation: CA$3.22m
  • Dominic Paradis

    VP of Legal Affairs & Corporate Secretary

    • Tenure: 0.0yrs
  • Linda Boulanger

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Manuel Morales

    Chief Scientist of Artificial Intelligence

    • Tenure: 1.3yrs

Board Members

  • Pierre Boivin (65yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$170.00k
  • Lino Saputo (52yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$140.46k
  • Maryse Bertrand (60yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$209.06k
  • Karen Kinsley (62yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$172.50k
  • Patricia Curadeau-Grou (64yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: CA$3.19m
  • Jean Houde (73yo)

    Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: CA$357.50k
  • Louis Vachon (56yo)

    President

    • Tenure: 12.2yrs
    • Compensation: CA$8.87m
  • Pierre Thabet (61yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$132.50k
  • Jill Denham (58yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: CA$132.50k
  • Andrée Savoie (47yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: CA$147.50k

Company Information

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


Key Information

  • Name: National Bank of Canada
  • Ticker: NTIO.F
  • Exchange: OTCPK
  • Founded: 1859
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$20.443b
  • Listing Market Cap: CA$15.343b
  • Shares outstanding: 335.58m
  • Website: https://www.nbc.ca

Number of Employees


Location

  • National Bank of Canada
  • National Bank Tower
  • 4th Floor
  • Montreal
  • Quebec
  • H3B 4L2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NATSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1980
NBCDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1980
NTIO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1980
NA.PRSTSX (The Toronto Stock Exchange)1ST PFD SER 30CACADFeb 2014
NA.PRATSX (The Toronto Stock Exchange)1ST CONV PFD 36CACADJun 2016
NA.PRCTSX (The Toronto Stock Exchange)1ST PFD SHS 38CACADJun 2017
NA.PRETSX (The Toronto Stock Exchange)5Y PFD 40 NVCCCACADJan 2018
NA.PRGTSX (The Toronto Stock Exchange)NCUM PFD SH 42CACADJun 2018

Biography

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through Personal and Commerci ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:34
End of Day Share Price2019/08/20 00:00
Earnings2019/04/30
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.