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Upturn AI SWOT - About
VersaBank (VBNK)
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Upturn Advisory Summary
04/01/2025: VBNK (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 89.56% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 336.89M USD | Price to earnings Ratio 11.51 | 1Y Target Price 12.7 |
Price to earnings Ratio 11.51 | 1Y Target Price 12.7 | ||
Volume (30-day avg) 105888 | Beta 1.14 | 52 Weeks Range 9.43 - 18.36 | Updated Date 04/1/2025 |
52 Weeks Range 9.43 - 18.36 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 0.67% | Basic EPS (TTM) 0.9 |
Earnings Date
Report Date 2025-03-04 | When Before Market | Estimate 0.29 | Actual 0.1929 |
Profitability
Profit Margin 32.07% | Operating Margin (TTM) 41.43% |
Management Effectiveness
Return on Assets (TTM) 0.76% | Return on Equity (TTM) 7.73% |
Valuation
Trailing PE 11.51 | Forward PE 7.79 | Enterprise Value 60757624 | Price to Sales(TTM) 3.07 |
Enterprise Value 60757624 | Price to Sales(TTM) 3.07 | ||
Enterprise Value to Revenue 5.35 | Enterprise Value to EBITDA - | Shares Outstanding 32518800 | Shares Floating 20500818 |
Shares Outstanding 32518800 | Shares Floating 20500818 | ||
Percent Insiders 31 | Percent Institutions 35.73 |
Analyst Ratings
Rating 4.25 | Target Price 20 | Buy 3 | Strong Buy 1 |
Buy 3 | Strong Buy 1 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
VersaBank
Company Overview
History and Background
VersaBank was founded in 1979 as Pacific & Western Trust Company. It evolved into a Schedule I chartered bank in Canada, operating with a branchless, business-to-business model.
Core Business Areas
- Digital Banking: Provides deposit and lending solutions to fintechs, brokers, and other financial institutions. Focuses on embedded finance solutions.
- Commercial Banking: Offers financing for commercial real estate, development and construction projects, and specialized commercial loans in select industries. This segment focuses on serving larger and medium-sized corporate clients.
Leadership and Structure
David Taylor serves as the President & CEO. The organizational structure comprises executive leadership overseeing Digital Banking and Commercial Banking divisions.
Top Products and Market Share
Key Offerings
- Deposit Solutions: High-interest savings accounts and term deposits offered through digital channels. Market share data is not readily available at this granular product level for VersaBank. Competitors include EQ Bank (EQB.TO), Motive Financial (a division of Canadian Western Bank (CWB.TO)), and Alterna Bank (not publicly traded).
- Lending Solutions: Commercial mortgage financing. Market share data is not readily available at this granular product level for VersaBank. Competitors include major Canadian banks like Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CM).
Market Dynamics
Industry Overview
The banking industry is undergoing rapid digital transformation, with increasing demand for online banking and embedded finance solutions. Regulatory changes and macroeconomic conditions also impact the market.
Positioning
VersaBank occupies a niche position as a digital bank focused on B2B partnerships and specialized commercial lending. Its competitive advantage lies in its branchless model and technology-driven approach.
Total Addressable Market (TAM)
The total addressable market for digital banking and commercial lending in North America is estimated to be in the hundreds of billions of dollars. VersaBank is positioned to capture a share of this market through its focused strategy.
Upturn SWOT Analysis
Strengths
- Branchless business model reduces overhead costs
- Focus on digital banking and embedded finance
- Specialized commercial lending expertise
- Strong technology platform
Weaknesses
- Smaller scale compared to major banks
- Reliance on partnerships for customer acquisition
- Limited brand recognition among consumers
- Concentration risk in certain lending sectors
Opportunities
- Growing demand for digital banking solutions
- Expansion into new geographic markets
- Increased adoption of embedded finance
- Potential acquisitions of smaller fintech companies
Threats
- Increased competition from established banks and fintechs
- Regulatory changes impacting the banking industry
- Economic downturns affecting commercial lending
- Cybersecurity risks and data breaches
Competitors and Market Share
Key Competitors
- RY
- TD
- BNS
- BMO
- CWB.TO
Competitive Landscape
VersaBank is a niche player compared to the major Canadian banks. It competes on technology, agility, and specialized services. Major banks have advantages in brand recognition and capital.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends require access to historical financial data.
Future Projections: Future projections require access to analyst estimates.
Recent Initiatives: Recent initiatives include expanding its digital banking platform and strategic partnerships.
Summary
VersaBank is a unique digital bank in Canada with a specialized focus. Its branchless model and fintech partnerships provide a cost advantage. However, it faces competition from larger banks and regulatory uncertainty. Future growth depends on successful execution of its digital strategy.
Similar Companies
BMO
Bank of Montreal
BMO
Bank of Montreal
BNS
Bank of Nova Scotia
BNS
Bank of Nova Scotia
RY
Royal Bank of Canada
RY
Royal Bank of Canada
TD
Toronto Dominion Bank
TD
Toronto Dominion Bank
Sources and Disclaimers
Data Sources:
- Company Website
- Company SEC Filings
- Industry Reports
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share data is estimated based on publicly available information. Financial data requires access to company reports.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About VersaBank
Exchange NASDAQ | Headquaters London, ON, Canada | ||
IPO Launch date 2021-08-27 | President, CEO & Director Mr. David Roy Taylor B.Sc., BSc (Hons), FICB, M.B.A., MBA, PPL | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 121 | Website https://www.versabank.com |
Full time employees 121 | Website https://www.versabank.com | ||
VersaBank provides various banking products and services in Canada and the United States. The company operates through three segments: Digital Banking Canada, Digital Banking USA, and DRTC (cybersecurity services and banking and financial technology development). It offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial real estate mortgages and loans, public sector, leases, and other financing. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.
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