Fact based stock research
National Bank of Canada (TSX:NA)

CA6330671034

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

National Bank of Canada stock research in summary

nbc.ca

ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% compared with investment alternatives), National Bank of Canada (Diversified Banks, Canada) shares have lower financial characteristics compared with similar stocks. Shares of National Bank of Canada are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives), and are riskily financed (Safety Rank of 33, which means above-average debt burdens) but show above-average growth (Growth Rank of 51). ...read more

RECOMMENDATION: A Combined Rank of 23, is a sell recommendation based on National Bank of Canada's financial characteristics. As the company National Bank of Canada shows low value with an Obermatt Value Rank of 17 (83% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 51% of comparable companies (Obermatt Growth Rank is 51). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 33 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for National Bank of Canada, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	17
Growth Rank	51
Safety Rank	33
Combined Rank	23

Country	Canada
Industry	Diversified Banks
Index	Human Rights, Renewables Users, TSX Composite
Size class	Large

This stock has achievements: Top 10 Stock.

24-Apr-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: National Bank of Canada

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	73	45	40	17
GROWTH
GROWTH	71	71	17	51
SAFETY
SAFETY	39	29	63	33
SENTIMENT
SENTIMENT	66	31	22	^new
360° VIEW
360° VIEW	85	33	23	^new

Most recent update of the stock research: 24-Apr-2025. Financial reporting date used for calculating ranks: 31-Oct-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better National Bank of Canada is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	73	45	40	17
GROWTH
GROWTH	71	71	17	51
SAFETY
SAFETY	39	29	63	33
COMBINED
COMBINED	85	39	40	23

Last update of combined financial performance: 24-Apr-2025. Stock analysis on combined financial performance: The higher the rank of National Bank of Canada the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), National Bank of Canada shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for National Bank of Canada. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 65% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 20 which means that the stock price compared with what market professionals expect for future profits is higher than 80% of comparable companies, indicating a low value concerning National Bank of Canada's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 31 which means that the stock price compared with what market professionals expect for future profit levels is higher than 69% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 9 is also low. Compared with invested capital, the stock price is higher than for 91% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on National Bank of Canada's stock price compared with the company's operational size and dividend yields. Should dividend investors pick National Bank of Canada? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose National Bank of Canada only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	73	40	27	20
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	89	69	66	31
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	15	15	11	9
DIVIDEND YIELD
DIVIDEND YIELD	85	80	75	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	73	45	40	17

Last update of Value Rank: 24-Apr-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of National Bank of Canada; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), National Bank of Canada shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for National Bank of Canada. While Sales Growth ranks at 67, professionals currently expect the company to grow more than 67% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 49, which means that, currently, professionals expect the company to grow its profits less than 51% of its competitors, and Capital Growth has a low rank of 3. Historic stock returns were also below average with a current Stock Returns rank of 49 which means that the stock returns have recently been below 51% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	64	79	75	67
PROFIT GROWTH
PROFIT GROWTH	8	52	47	49
CAPITAL GROWTH
CAPITAL GROWTH	93	10	9	3
STOCK RETURNS
STOCK RETURNS	67	79	15	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	71	71	17	51

Last update of Growth Rank: 24-Apr-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of National Bank of Canada.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 33 (better than 33% compared with alternatives), the company National Bank of Canada has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of National Bank of Canada is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for National Bank of Canada. Liquidity is at 73, meaning the company generates more profit to service its debt than 73% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 20, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 80% of its competitors. Leverage is also high at a rank of 32, which means that the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 33 (worse than 67% compared with alternatives), National Bank of Canada has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	38	28	34	32
REFINANCING
REFINANCING	12	1	24	20
LIQUIDITY
LIQUIDITY	72	85	89	73
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	39	29	63	33

Last update of Safety Rank: 24-Apr-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of National Bank of Canada and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	43	28	^new
OPINIONS CHANGE
OPINIONS CHANGE	63	6	54	^new
PRO HOLDINGS
PRO HOLDINGS	36	28	16	^new
MARKET PULSE
MARKET PULSE	96	74	50	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	66	31	22	^new

Last update of Sentiment Rank: 24-Apr-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for National Bank of Canada.
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