
National Bank of Canada has consistently delivered strong financial results, with a five-year average annual return on equity of 15.1%. This impressive track record is a testament to the bank's solid business model and efficient operations.
The bank's financial performance has been driven by its diversified revenue streams, which include personal and commercial banking, investment and wealth management, and capital markets. Its focus on providing excellent customer service has also contributed to its success.
National Bank of Canada has a strong market position, with a market capitalization of over $30 billion CAD. This size and scale give the bank a competitive advantage in the Canadian banking market.
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Stock Analysis
The National Bank of Canada's financial performance is expected to grow in the coming years. The revenue is projected to reach $12,885 CAD in 2025 and $14,341 CAD in 2026.
The dividend yield is expected to be 3.50% in 2025 and 3.74% in 2026. This means that investors can expect a decent return on their investment.
The P/E ratio is expected to decrease from 12.31 in 2025 to 11.31 in 2026, indicating that the stock may be a good value. The P/E ratio is a measure of how much investors are willing to pay for each dollar of earnings.
Here is a summary of the earnings estimates for the current and next year:
The number of analysts estimating earnings for the current year is 11, and the average estimate is $10.762 CAD.
Analyst Rating / Estimates
Analyst Rating / Estimates can give you a good idea of how the market is perceiving a stock. The average estimate for National Bank of Canada is 2.66, based on 2 analyst estimates.
These estimates are for the current fiscal year, with a growth rate estimated at +2.70% year over year. To put this in perspective, last year's estimate was 2.59.
Here's a breakdown of the analyst estimates:
2 Resilient Stocks for Down Markets
When you're looking for stocks to hold strong during market downturns, two Canadian options are worth considering. National Bank of Canada is one of them.
National Bank of Canada is making strides with upward movement on the stock. It's proven to be a resilient stock that can hold its own during turbulent times.
The National Bank of Canada stock has shown its ability to move upward, making it a solid choice for those looking for stability.
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Royal vs. Bank: Where to Park Investment Capital?
When comparing Royal Bank and National Bank, it's clear that growth is a key factor in the Canadian banking sector. Royal Bank is the top contender in terms of growth.
If we look at the data, Royal Bank has consistently outperformed National Bank in terms of growth. This is evident in the article section "Royal Bank vs. National Bank: Where Should You Park Your Investment Capital?" where it's mentioned that growth alone can identify the top contender.
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Financial Performance
The National Bank of Canada's financial performance is a key area to consider when evaluating its stock. The bank's Return on Assets (Normalized) is 0.84%, indicating a relatively strong ability to generate profits from its assets.
The bank's Return on Equity (Normalized) is 16.26%, which is significantly higher than its peers, including BNS and TD, with returns of 11.27% and 13.50% respectively. This suggests that the bank is able to generate a substantial amount of profit from its equity.
Here is a brief comparison of the banks' normalized returns:
Price Performance
The price performance of a stock can be a great indicator of its overall health. In the past month, the stock's price has been volatile, with a period low of 120.04 on February 3, 2025, and a period high of 133.36 on January 15, 2025.
The stock's performance over the past month has been a decline of 7.03 (-5.31%) since January 10, 2025. This is a significant drop, and it's essential to keep an eye on the stock's price movement.
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Looking at the 3-month period, the stock's price has been even more unpredictable, with a period low of 120.04 on February 3, 2025, and a period high of 141.15 on December 3, 2024. The stock's performance over the past three months has been a decline of 7.46 (-5.61%) since November 11, 2024.
The 52-week period shows a more positive trend, with a period low of 100.47 on February 13, 2024, and a period high of 141.15 on December 3, 2024. The stock's performance over the past year has been an increase of 23.07 (+22.53%) since February 9, 2024.
Here's a summary of the stock's price performance over the past periods:
Profitability
Financial performance is a crucial aspect of any company's success. NTIOF, BNS, and TD have varying levels of profitability.
NTIOF has a Return on Assets (Normalized) of 0.84%, significantly higher than BNS' 0.57% and TD's 0.70%. This indicates that NTIOF is generating more revenue from its assets compared to the other two companies.
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BNS has a Return on Equity (Normalized) of 11.27%, which is lower than NTIOF's 16.26% but higher than TD's 13.50%. This suggests that BNS is generating more profit from its equity compared to TD.
TD's Return on Assets (Normalized) is 0.70%, which is lower than NTIOF's 0.84% but higher than BNS' 0.57%. This indicates that TD is generating more revenue from its assets compared to BNS.
Here's a comparison of the three companies' profitability metrics:
These numbers highlight the differences in profitability among the three companies, with NTIOF standing out as the most profitable.
Technical Analysis
The National Bank of Canada's stock has a relatively stable dividend yield, averaging around 4.2% over the past five years. This stability is a result of the bank's consistent dividend payments.
The bank's dividend payout ratio has remained relatively low, averaging around 35%, indicating a strong ability to maintain dividend payments.
National Bank of Canada's stock has a beta of 0.83, indicating a lower level of volatility compared to the overall market. This makes it a relatively safe investment option for those looking for stability.
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The bank's earnings per share have consistently grown over the past five years, averaging a 5% annual increase. This growth is a result of the bank's successful expansion into new markets and services.
National Bank of Canada's stock has a price-to-earnings ratio of around 13.5, which is lower than the industry average. This indicates that the stock may be undervalued compared to its peers.
Dividend Information
National Bank of Canada has a history of paying dividends to its shareholders, with the first recorded dividend in 2009 being $1.24 CAD.
The bank's dividend payments have been steadily increasing over the years, with a high of $4.32 CAD in 2024.
Here's a breakdown of the bank's dividend payments from 2009 to 2024:
Dividend Calendar
The National Bank of Canada has a long history of paying dividends to its shareholders, with the first recorded dividend payment in 2009. The dividend has been steadily increasing over the years.
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One of the most important things to know about the National Bank of Canada's dividend is the yield, which is the ratio of the dividend payment to the stock's current price. In 2024, the yield is 3.25%.
If you're considering investing in the National Bank of Canada, it's essential to look at the dividend calendar to see when payments are made. According to the calendar, the National Bank of Canada pays dividends in January and July of each year.
Here are the dividend payments for the National Bank of Canada over the past few years:
The dividend payment has been steadily increasing over the years, with the highest payment made in 2024 at $4.32 CAD.
Is Stock a Buy for 3.4% Dividend Yield?
National Bank of Canada has a history of paying consistent dividends, with a dividend yield that has fluctuated over the years.
Looking at the dividend yield from 2009, it was 4.40%, which is significantly higher than the current yield of 3.4%.
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The bank's dividend payout has increased steadily over the years, with a dividend of 4.32 CAD paid out in 2024.
Here's a breakdown of the dividend yield and payout for National Bank of Canada over the past few years:
The stock has surged over 1,000% in the past two decades, if we adjust for dividend reinvestments, which is a testament to its long-term growth potential.
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