National Bank of Canada
National Bank of Canada Fundamental Analysis
National Bank of Canada (NBKCF) shows moderate financial fundamentals with a PE ratio of 2.69, profit margin of 13.04%, and ROE of 12.71%. The company generates $29.1B in annual revenue with weak year-over-year growth of 1.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NBKCF's fundamental strength across five key dimensions:
Efficiency Score
WeakNBKCF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNBKCF trades at attractive valuation levels.
Growth Score
WeakNBKCF faces weak or negative growth trends.
Financial Health Score
WeakNBKCF carries high financial risk with limited liquidity.
Profitability Score
WeakNBKCF struggles to sustain strong margins.
Key Financial Metrics
Is NBKCF Expensive or Cheap?
P/E Ratio
NBKCF trades at 2.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NBKCF's PEG of -0.91 indicates potential undervaluation.
Price to Book
The market values National Bank of Canada at 0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -19.30 times EBITDA. This is generally considered low.
How Well Does NBKCF Make Money?
Net Profit Margin
For every $100 in sales, National Bank of Canada keeps $13.04 as profit after all expenses.
Operating Margin
Core operations generate 12.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.71 in profit for every $100 of shareholder equity.
ROA
National Bank of Canada generates $0.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
National Bank of Canada produces operating cash flow of $4.38B, showing steady but balanced cash generation.
Free Cash Flow
National Bank of Canada generates strong free cash flow of $3.91B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.01 in free cash annually.
FCF Yield
NBKCF converts 40.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How NBKCF Stacks Against Its Sector Peers
| Metric | NBKCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.69 | 18.73 | Better (Cheaper) |
| ROE | 12.71% | 847.00% | Weak |
| Net Margin | 13.04% | 2562.00% | Weak |
| Debt/Equity | 4.44 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.09 | 674.76 | Weak Liquidity |
| ROA | 0.70% | -21692.00% (disorted) | Weak |
NBKCF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews National Bank of Canada's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
145.51%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
74.46%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-79.44%
Industry Style: Value, Dividend, Cyclical
Declining