OTCPK:VRRK.F

Stock Analysis Report

Executive Summary

VersaBank, a schedule 1 bank, provides banking products and services in Canada.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

How has VersaBank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

VRRK.F

4.8%

US Banks

2.3%

US Market


1 Year Return

-4.2%

VRRK.F

0.04%

US Banks

5.6%

US Market

Return vs Industry: VRRK.F underperformed the US Banks industry which returned 0% over the past year.

Return vs Market: VRRK.F underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

VRRK.FIndustryMarket
7 Day0%4.8%2.3%
30 Day0%-0.5%-1.0%
90 Day-4.9%2.0%-0.7%
1 Year-3.3%-4.2%2.9%0.04%7.9%5.6%
3 Yearn/a51.5%41.1%45.6%36.3%
5 Yearn/a70.9%52.3%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is VersaBank undervalued compared to its fair value and its price relative to the market?

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VRRK.F ($5.22) is trading below our estimate of fair value ($7.98)

Significantly Undervalued: VRRK.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VRRK.F is good value based on its PE Ratio (8x) compared to the Banks industry average (12.6x).

PE vs Market: VRRK.F is good value based on its PE Ratio (8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate VRRK.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRRK.F is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is VersaBank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRRK.F's forecast earnings growth (10.7% per year) is above the savings rate (2.7%).

Earnings vs Market: VRRK.F's earnings (10.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if VRRK.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if VRRK.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if VRRK.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has VersaBank performed over the past 5 years?

25.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VRRK.F's earnings have grown significantly by 25.9% per year over the past 5 years.

Accelerating Growth: VRRK.F's earnings growth over the past year (31.2%) exceeds its 5-year average (25.9% per year).

Earnings vs Industry: VRRK.F earnings growth over the past year (31.2%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: VRRK.F's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: VRRK.F's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate VRRK.F's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is VersaBank'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: VRRK.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: VRRK.F's debt is covered by short term assets (assets are 3.177010x debt).


Financial Institutions Analysis

Asset Level: VRRK.F's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: VRRK.F has an appropriate level of bad loans (1.59%)


Next Steps

Dividend

What is VersaBank's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VRRK.F's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: VRRK.F's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: Whilst dividend payments have been stable, VRRK.F has been paying a dividend for less than 10 years.

Growing Dividend: VRRK.F's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.1%), VRRK.F's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

David Taylor (66yo)

26.8yrs

Tenure

CA$1,725,371

Compensation

Mr. David Roy Taylor, BSc (Hons), MBA, FICB, PPL has been the President and Chief Executive Officer at VersaBank since January 18, 1993. Mr. Taylor has been the Chief Executive Officer of VersaBank since  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether David's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Management: VRRK.F's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

73yo

Average Age

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


Insider Trading

Insider Buying: VRRK.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$21,37616 Sep 19
Patrick George
EntityIndividual
Shares4,200
Max PriceCA$5.09
BuyCA$15,07913 Sep 19
Paul Oliver
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,925
Max PriceCA$5.16
BuyCA$6,52813 Sep 19
Patrick George
EntityIndividual
Shares1,300
Max PriceCA$5.02
BuyCA$90,16713 Sep 19
Patrick George
EntityIndividual
Shares17,600
Max PriceCA$5.17
BuyCA$177,55620 Aug 19
Patrick George
EntityIndividual
Shares34,000
Max PriceCA$5.33
BuyCA$5,27026 Jun 19
David Bratton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$5.27
BuyCA$10,53426 Jun 19
R. Clarke
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares2,000
Max PriceCA$5.28
BuyCA$16,29514 Jun 19
Robbert-Jan Brabander
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceCA$5.43
BuyCA$10,81406 Jun 19
Ross Duggan
EntityIndividual
Shares2,000
Max PriceCA$5.41
BuyCA$16,21730 May 19
Colin Litton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceCA$5.41
BuyCA$10,50901 Apr 19
Richard Carter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,900
Max PriceCA$5.53
BuyCA$16,82328 Mar 19
Jean-Paul Beker
EntityIndividual
Shares3,073
Max PriceCA$5.48
BuyCA$11,24513 Mar 19
Arnold Hillier
EntityIndividual
Shares2,000
Max PriceCA$5.62
BuyCA$5,05012 Mar 19
Arnold Hillier
EntityIndividual
Shares900
Max PriceCA$5.61
BuyCA$6,28908 Mar 19
Patrick George
EntityIndividual
Shares1,100
Max PriceCA$5.72
BuyCA$11,29507 Mar 19
Jonathan Francis Taylor
EntityIndividual
Role
Head of Human Resources
Executive Head
Shares2,000
Max PriceCA$5.65
BuyCA$11,58404 Mar 19
Jonathan Francis Taylor
EntityIndividual
Role
Head of Human Resources
Executive Head
Shares2,000
Max PriceCA$5.79
BuyCA$37,60828 Feb 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares6,300
Max PriceCA$5.97
BuyCA$11,38013 Feb 19
Richard Carter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,100
Max PriceCA$5.43
BuyCA$4,46206 Feb 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares800
Max PriceCA$5.58
BuyCA$1,13901 Feb 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares200
Max PriceCA$5.70
BuyCA$22,83731 Jan 19
Joanne Johnston
EntityIndividual
Role
Senior Key Executive
Chief Internal Auditor
Shares4,000
Max PriceCA$5.74
BuyCA$47,25525 Jan 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares8,800
Max PriceCA$5.42
BuyCA$10,71421 Jan 19
Michael Dixon
EntityIndividual
Role
Senior Key Executive
Executive Head & Senior VP of E-Commerce
Shares2,000
Max PriceCA$5.36
BuyCA$10,72816 Jan 19
Nick Kristo
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer & Senior VP of Credit
Shares2,000
Max PriceCA$5.36
BuyCA$93,60615 Jan 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares17,500
Max PriceCA$5.35
BuyCA$422,19608 Jan 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares78,500
Max PriceCA$5.39
BuyCA$140,60807 Jan 19
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares26,400
Max PriceCA$5.34
BuyCA$10,48001 Jan 19
Gulamali Lalani
EntityIndividual
Shares2,000
Max PriceCA$5.24
BuyCA$2,64522 Dec 18
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceCA$5.29
BuyCA$5,28020 Dec 18
David Bratton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$5.28
BuyCA$7,67519 Dec 18
R. Clarke
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares1,400
Max PriceCA$5.48
BuyCA$11,59229 Nov 18
David Taylor
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceCA$5.80
BuyCA$2,96829 Nov 18
David Bratton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceCA$5.94
BuyCA$19,40501 Nov 18
Jean-Paul Beker
EntityIndividual
Shares3,650
Max PriceCA$5.32
BuyCA$5,25531 Oct 18
Gulamali Lalani
EntityIndividual
Shares1,000
Max PriceCA$5.26
BuyCA$8,12830 Oct 18
Paul Oliver
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max PriceCA$5.44
BuyCA$5,41223 Oct 18
Robbert-Jan Brabander
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,006
Max PriceCA$5.38

Ownership Breakdown


Management Team

  • Jon Taylor (59yo)

    Executive Head

    • Tenure: 0yrs
    • Compensation: CA$491.26k
  • David Taylor (66yo)

    President

    • Tenure: 26.8yrs
    • Compensation: CA$1.73m
  • Tel Matrundola

    Executive Head of Innovation Centre of Excellence

    • Tenure: 2.6yrs
  • David Thoms

    Vice President of Structured & Corporate Finance

    • Tenure: 3.6yrs
  • R. Clarke (48yo)

    CFO & Corporate Secretary

    • Tenure: 2.8yrs
    • Compensation: CA$596.22k
  • Wade MacBain

    Director

    • Tenure: 0yrs
  • Nick Kristo

    Chief Risk Officer & Senior VP of Credit

    • Tenure: 0yrs
    • Compensation: CA$472.56k
  • Mike Dixon

    Executive Head & Senior VP of E-Commerce

    • Tenure: 2.6yrs
  • Joanne Johnston

    Chief Internal Auditor

    • Tenure: 0yrs
  • Gurpreet Sahota

    Chief Architect of Cyber Security

    • Tenure: 1.8yrs

Board Members

  • Robbert-Jan Brabander

    Director

    • Tenure: 9.9yrs
    • Compensation: CA$109.91k
  • David Taylor (66yo)

    President

    • Tenure: 26.8yrs
    • Compensation: CA$1.73m
  • David Bratton

    Director

    • Tenure: 26.1yrs
    • Compensation: CA$64.41k
  • Tom Hockin (80yo)

    Chairman of the Board

    • Tenure: 5.2yrs
    • Compensation: CA$167.51k
  • Avery Pennarun

    Director

    • Tenure: 3.5yrs
    • Compensation: CA$48.90k
  • Paul Oliver (73yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: CA$109.93k
  • Colin Litton

    Director

    • Tenure: 9.3yrs
    • Compensation: CA$110.48k
  • Susan McGovern

    Director

    • Tenure: 8.4yrs
    • Compensation: CA$51.50k
  • Dick Carter

    Director

    • Tenure: 4.8yrs
    • Compensation: CA$89.80k
  • Gabrielle Bochynek

    Director

    • Tenure: 0.5yrs

Company Information

VersaBank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VersaBank
  • Ticker: VRRK.F
  • Exchange: OTCPK
  • Founded: 1979
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CA$142.373m
  • Listing Market Cap: CA$107.942m
  • Shares outstanding: 21.12m
  • Website: https://www.versabank.com

Number of Employees


Location

  • VersaBank
  • 140 Fullarton Street
  • Suite 2002
  • London
  • Ontario
  • N6A 5P2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEWDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2017
VBTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2017
VB.PRATSX (The Toronto Stock Exchange)PFD SHS SER 1CACADFeb 2017
VRRK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2017
VB.PRBTSX (The Toronto Stock Exchange)PFD SER 3CACADFeb 2017

Biography

VersaBank, a schedule 1 bank, provides banking products and services in Canada. The company offers deposit products; and commercial lending services, including short-term construction financing, long-term  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:33
End of Day Share Price2019/09/17 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.