ScoreWhy is VersaBank ?
1
High Profitability with a Net Interest Margin of 18.25%
2
Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 7.48%
3
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CAD 50.02 MM
- NET SALES(Q) Lowest at CAD 70.98 MM
- PRE-TAX PROFIT(Q) Fallen at -28.01%
4
With ROA of 0.52%, it has a fair valuation with a 1.04 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.63%, its profits have fallen by -38.4%
5
High Institutional Holdings at 37.86%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 2.61% over the previous quarter.
6
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.63% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to VersaBank should be less than 10%
- Overall Portfolio exposure to Regional Banks should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is VersaBank for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
VersaBank
-100.0%
0.48
43.23%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.27%
EBIT Growth (5y)
11.05%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
6.70%
Pledged Shares
0
Institutional Holding
37.86%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
1.07
EV to EBIT
5.72
EV to EBITDA
5.28
EV to Capital Employed
1.23
EV to Sales
0.72
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
21.55%
ROE (Latest)
5.45%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
NII(Q)
Highest at CAD 28.03 MM
CASH AND EQV(HY)
Highest at CAD 726.88 MM
-10What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CAD 50.02 MM
NET SALES(Q)
Lowest at CAD 70.98 MM
PRE-TAX PROFIT(Q)
Fallen at -28.01%
NET PROFIT(Q)
Fallen at -27.89%
Here's what is working for VersaBank
NII
Highest at CAD 28.03 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (CAD MM)
Cash and Eqv
Highest at CAD 726.88 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for VersaBank
Operating Cash Flow
Lowest at CAD 50.02 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Net Sales
Lowest at CAD 70.98 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Pre-Tax Profit
Fallen at -28.01%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Net Profit
Fallen at -27.89%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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