ScoreWhy is VersaBank ?
1
High Profitability with a Net Interest Margin of 20.49%
2
Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 8.56%
3
The company has declared Positive results for the last 3 consecutive quarters
- NII(Q) Highest at CAD 35.68 MM
- NET SALES(Q) Highest at CAD 83.06 MM
- GROSS NPA (%)(Q) Lowest at 0.26%
4
With ROA of 0.47%, it has a fair valuation with a 1.59 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 88.61%, its profits have fallen by -4.7%
5
High Institutional Holdings at 45.64%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.95% over the previous quarter.
6
Market Beating performance in long term as well as near term
- Along with generating 88.61% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- 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, High Return
Absolute
Risk Adjusted
Volatility
VersaBank
87.67%
2.21
39.45%
S&P/TSX 60
20.36%
2.51
12.02%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
30.20%
EBIT Growth (5y)
12.22%
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
11.07%
Pledged Shares
0
Institutional Holding
45.64%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
1.59
EV to EBIT
9.96
EV to EBITDA
9.17
EV to Capital Employed
5.10
EV to Sales
1.29
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
51.23%
ROE (Latest)
5.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 109.2 MM
NII(Q)
Highest at CAD 36.77 MM
NET SALES(Q)
Highest at CAD 89.74 MM
GROSS NPA (%)
(Q
NET PROFIT(9M)
Higher at CAD 28.65 MM
CASH AND EQV(HY)
Highest at CAD 1,058.21 MM
PRE-TAX PROFIT(Q)
At CAD 13.88 MM has Grown at 58.53%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for VersaBank
NII
Highest at CAD 36.77 MM and Grown
In each period in the last five periodsMOJO Watch
The bank's income from core business is increasing
Net NPA
Operating Cash Flow
Highest at CAD 109.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
Highest at CAD 89.74 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (CAD MM)
Non Performing Loans (%)
Lowest at 0.24%
in the last four Semi-Annual periodsMOJO Watch
Proportion of stressed loans given by the bank are falling
Non Performing Loans (%)
Pre-Tax Profit
At CAD 13.88 MM has Grown at 58.53%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Cash and Eqv
Highest at CAD 1,058.21 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Net Profit
Higher at CAD 28.65 MM
than preceding 12 month period ended Jul 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (CAD MM)
Depreciation
Highest at CAD 1.23 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Depreciation
At CAD 1.23 MM has Grown at 29.78%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CAD MM)
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