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
58.73%
0.48
43.23%
S&P/TSX 60
32.99%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
28.87%
EBIT Growth (5y)
13.96%
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
43.69%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.12
EV to EBIT
1.88
EV to EBITDA
1.75
EV to Capital Employed
5.24
EV to Sales
0.26
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
278.07%
ROE (Latest)
5.78%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
NII(Q)
Highest at CAD 32.63 MM
OPERATING CASH FLOW(Y)
Highest at CAD 150.4 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 15.35%
CASH AND EQV(HY)
Highest at CAD 1,042.02 MM
NET SALES(Q)
Highest at CAD 77.47 MM
-4What is not working for the Company
NET PROFIT(Q)
Lowest at CAD 5.2 MM
EPS(Q)
Lowest at CAD 0.16
Here's what is working for VersaBank
NII
Highest at CAD 32.63 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 150.4 MM
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 77.47 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Cash and Eqv
Highest at CAD 1,042.02 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 15.35%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for VersaBank
Net Profit
Lowest at CAD 5.2 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD 0.16
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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