# VersaBank (VBNK.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Financial Services / Banks. Price C$30.82, market value C$999 million.

## Valuation
- **P/E (trailing): 29.4×** (5-yr avg 13.0×, 3-yr avg 13.0×). VersaBank trades at 29.4× trailing earnings, well above its own five-year average of 13.0×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 11.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 6.7×**. Each dollar of revenue is priced at 6.7×.
- **Price / book: 1.8×**. The shares trade at 1.8× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 1.0%** (5-yr avg 19.3%). Free cash flow equals 1.0% of the market value, below its five-year average of 19.3%, so the shares are pricier on cash than usual.
- **Earnings yield: 3.4%**. The inverse of the P/E: 3.4% of the price is earned each year.

## Profitability
- **Net margin: 22.8%**. 22.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.3%**. 5.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on assets: 0.6%**. Each dollar of assets produces 0.6% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 11.7%** (3-yr 14.8%/yr, 5-yr 18.1%/yr). Revenue grew 11.7% over the last year, against 18.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -39.6%** (3-yr 4.4%/yr, 5-yr 1.9%/yr). Earnings per share fell 39.6%, slower than revenue, so margins compressed.

## Financial health
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.
- **Cash and short-term investments: C$582 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 0.32%** (C$0.03 per share, trailing). VersaBank yields 0.32%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 11%** (33% of free cash flow). 11% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 8**. 8 straight years of increases.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr 0.0%). The dividend has not grown over five years.
- **Shareholder yield: -0.5%**. Dividends plus net buybacks return -0.5% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (1 analyst). 1 analysts cover VersaBank; the consensus is buy, with an average price target of C$31.00 (+1% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 85.9%** (YTD 50.9%, 3-mo 14.0%). The shares are up 85.9% over twelve months including dividends.
- **From 52-week high: -9.4%** (95.1% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.61** (volatility 41%). Beta of 0.61 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=VBNK.TO · Page: https://foliofundamentals.com/stocks/vbnk.to

Not investment advice.