Fact based stock research
VersaBank (TSX:VBNK)

CA92512J1066

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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.

VersaBank stock research in summary

versabank.com

ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), VersaBank (Regional Banks, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of VersaBank are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives), are safely financed (Safety Rank of 87, which means low debt burdens), but show below-average growth (Growth Rank of 15). ...read more

RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on VersaBank's financial characteristics. As the company VersaBank's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 15) while being safely financed (Obermatt Safety Rank of 87), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 55% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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	55
Growth Rank	15
Safety Rank	87
Combined Rank	67

Country	Canada
Industry	Regional Banks
Index	NASDAQ
Size class	X-Small

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

Further information

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

Research History: VersaBank

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	49	71	54	55
GROWTH
GROWTH	92	99	59	15
SAFETY
SAFETY	77	21	72	87
SENTIMENT
SENTIMENT	86	99	52	^new
360° VIEW
360° VIEW	100	91	73	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 30-Apr-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better VersaBank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	49	71	54	55
GROWTH
GROWTH	92	99	59	15
SAFETY
SAFETY	77	21	72	87
COMBINED
COMBINED	96	77	78	67

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of VersaBank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), VersaBank shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for VersaBank. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value concerning VersaBank's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 89% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 14 (dividends are expected to be higher than for 14% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 51% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for VersaBank to 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on VersaBank's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	32	56	39	52
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	56	97	95	89
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	75	65	44	49
DIVIDEND YIELD
DIVIDEND YIELD	19	15	14	14
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	49	71	54	55

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of VersaBank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 15 (better than 15% compared with alternatives), VersaBank shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for VersaBank. While Sales Growth ranks at 96, professionals currently expect the company to grow more than 96% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 17, which means that, currently, professionals expect the company to grow its profits less than 83% of its competitors, and Capital Growth has a low rank of 1. Historic stock returns were also below average with a current Stock Returns rank of 33 which means that the stock returns have recently been below 67% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 15, is a sell 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	86	96	98	96
PROFIT GROWTH
PROFIT GROWTH	41	89	83	17
CAPITAL GROWTH
CAPITAL GROWTH	98	45	4	1
STOCK RETURNS
STOCK RETURNS	65	100	35	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	92	99	59	15

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of VersaBank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 87 (better than 87% compared with alternatives) for 2025, the company VersaBank has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of VersaBank is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for VersaBank.Leverage is at 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors.Refinancing is at a rank of 86, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 86% of its competitors. Liquidity is at 17, meaning that the company generates less profit to service its debt than 83% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 87 (better than 87% compared with alternatives), VersaBank has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for VersaBank more challenging. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	80	14	69	90
REFINANCING
REFINANCING	98	94	94	86
LIQUIDITY
LIQUIDITY	13	5	19	17
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77	21	72	87

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of VersaBank 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	89	84	^new
OPINIONS CHANGE
OPINIONS CHANGE	92	89	50	^new
PRO HOLDINGS
PRO HOLDINGS	1	67	46	^new
MARKET PULSE
MARKET PULSE	48	98	45	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	86	99	52	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for VersaBank.
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