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 1.64 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 75.77%, 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 75.77% 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 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, High Return
Absolute
Risk Adjusted
Volatility
VersaBank
75.77%
2.40
35.94%
S&P/TSX 60
29.6%
2.31
12.81%
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
30
Industry P/E
Price to Book Value
1.64
EV to EBIT
10.67
EV to EBITDA
9.83
EV to Capital Employed
5.47
EV to Sales
1.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
51.23%
ROE (Latest)
5.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NII(Q)
Highest at CAD 35.68 MM
NET SALES(Q)
Highest at CAD 83.06 MM
GROSS NPA (%)
(Q
CASH AND EQV(HY)
Highest at CAD 1,196.16 MM
-1What is not working for the Company
CREDIT DEPOSIT RATIO(HY)
Lowest at 102.49%
Here's what is working for VersaBank
NII
Highest at CAD 35.68 MM and Grown
In each period in the last five periodsMOJO Watch
The bank's income from core business is increasing
Net NPA
Net Sales
Highest at CAD 83.06 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 0.26%
in the last four Semi-Annual periodsMOJO Watch
Proportion of stressed loans given by the bank are falling
Non Performing Loans (%)
Cash and Eqv
Highest at CAD 1,196.16 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
Credit Deposit Ratio
Lowest at 102.49%
in the last four Semi-Annual periodsMOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets
Credit Deposit Ratio (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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