Canadian Western Bank
Canadian Western Bank Fundamental Analysis
Canadian Western Bank (CWB.TO) shows moderate financial fundamentals with a PE ratio of 18.45, profit margin of 25.04%, and ROE of 7.07%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 6.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CWB.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCWB.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCWB.TO trades at attractive valuation levels.
Growth Score
ModerateCWB.TO shows steady but slowing expansion.
Financial Health Score
WeakCWB.TO carries high financial risk with limited liquidity.
Profitability Score
ModerateCWB.TO maintains healthy but balanced margins.
Key Financial Metrics
Is CWB.TO Expensive or Cheap?
P/E Ratio
CWB.TO trades at 18.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CWB.TO's PEG of -3.38 indicates potential undervaluation.
Price to Book
The market values Canadian Western Bank at 1.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does CWB.TO Make Money?
Net Profit Margin
For every $100 in sales, Canadian Western Bank keeps $25.04 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.07 in profit for every $100 of shareholder equity.
ROA
Canadian Western Bank generates $0.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canadian Western Bank generates strong operating cash flow of $686.22M, reflecting robust business health.
Free Cash Flow
Canadian Western Bank generates strong free cash flow of $553.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.73 in free cash annually.
FCF Yield
CWB.TO converts 10.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How CWB.TO Stacks Against Its Sector Peers
| Metric | CWB.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.45 | 18.66 | Neutral |
| ROE | 7.07% | 806.00% | Weak |
| Net Margin | 25.04% | -451.00% (disorted) | Strong |
| Debt/Equity | 1.72 | 1.00 | Weak (High Leverage) |
| Current Ratio | 0.00 | 662.02 | Weak Liquidity |
| ROA | 0.69% | -24409.00% (disorted) | Weak |
CWB.TO outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canadian Western Bank's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.52%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-6.32%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
3005.62%
Industry Style: Value, Dividend, Cyclical
High Growth