VersaBank
VersaBank Fundamental Analysis
VersaBank (VBNK.TO) shows moderate financial fundamentals with a PE ratio of 20.62, profit margin of 10.04%, and ROE of 5.89%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 3.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VBNK.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakVBNK.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateVBNK.TO shows balanced valuation metrics.
Growth Score
WeakVBNK.TO faces weak or negative growth trends.
Financial Health Score
ModerateVBNK.TO shows balanced financial health with some risks.
Profitability Score
WeakVBNK.TO struggles to sustain strong margins.
Key Financial Metrics
Is VBNK.TO Expensive or Cheap?
P/E Ratio
VBNK.TO trades at 20.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VBNK.TO's PEG of 2.65 indicates potential overvaluation.
Price to Book
The market values VersaBank at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.96 times EBITDA. This signals the market has high growth expectations.
How Well Does VBNK.TO Make Money?
Net Profit Margin
For every $100 in sales, VersaBank keeps $10.04 as profit after all expenses.
Operating Margin
Core operations generate 14.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.89 in profit for every $100 of shareholder equity.
ROA
VersaBank generates $0.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
VersaBank generates strong operating cash flow of $130.39M, reflecting robust business health.
Free Cash Flow
VersaBank generates strong free cash flow of $130.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.08 in free cash annually.
FCF Yield
VBNK.TO converts 20.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How VBNK.TO Stacks Against Its Sector Peers
| Metric | VBNK.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.62 | 18.66 | Worse (Expensive) |
| ROE | 5.89% | 806.00% | Weak |
| Net Margin | 10.04% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 662.02 | Weak Liquidity |
| ROA | 0.51% | -24409.00% (disorted) | Weak |
VBNK.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
136.69%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-1.68%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-27.77%
Industry Style: Value, Dividend, Cyclical
Declining