VersaBank
VersaBank Fundamental Analysis
VersaBank (VB.TO) shows moderate financial fundamentals with a PE ratio of 13.82, profit margin of 34.24%, and ROE of 7.62%. The company generates N/A in annual revenue with moderate year-over-year growth of 3.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VB.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakVB.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVB.TO trades at attractive valuation levels.
Growth Score
WeakVB.TO faces weak or negative growth trends.
Financial Health Score
ExcellentVB.TO maintains a strong and stable balance sheet.
Profitability Score
WeakVB.TO struggles to sustain strong margins.
Key Financial Metrics
Is VB.TO Expensive or Cheap?
P/E Ratio
VB.TO trades at 13.82 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VB.TO's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values VersaBank at 0.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.77 times EBITDA. This is generally considered low.
How Well Does VB.TO Make Money?
Net Profit Margin
For every $100 in sales, VersaBank keeps $34.24 as profit after all expenses.
Operating Margin
Core operations generate 91.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.62 in profit for every $100 of shareholder equity.
ROA
VersaBank generates $0.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-5.13 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
20.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How VB.TO Stacks Against Its Sector Peers
| Metric | VB.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.82 | 18.66 | Better (Cheaper) |
| ROE | 7.62% | 806.00% | Weak |
| Net Margin | 34.24% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.30 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 20.34 | 662.02 | Strong Liquidity |
| ROA | 0.93% | -24409.00% (disorted) | Weak |
VB.TO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews VersaBank's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.43%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
60.11%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1021.59%
Industry Style: Value, Dividend, Cyclical
High Growth