Fact based stock research
Canadian Western Bank (TSX:CWB)

CA13677F1018

How to read the 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.

Canadian Western Bank stock research in summary

cwbank.com

ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), Canadian Western Bank (Regional Banks, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of Canadian Western Bank are a good value (attractively priced) with a consolidated Value Rank of 98 (better than 98% of alternatives), show above-average growth (Growth Rank of 55) but are riskily financed (Safety Rank of 5), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on Canadian Western Bank's financial characteristics. As the company Canadian Western Bank's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 98) and above-average growth (Obermatt Growth Rank of 55), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 5) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	98
Growth Rank	55
Safety Rank	5
Combined Rank	63

Country	Canada
Industry	Regional Banks
Index	TSX Composite
Size class	XX-Large

18-Apr-2024. 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: Canadian Western Bank

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	100	100	98
GROWTH
GROWTH	34	69	93	55
SAFETY
SAFETY	4	5	5	5
SENTIMENT
SENTIMENT	n/a	67	100	^new
360° VIEW
360° VIEW	n/a	77	98	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Canadian Western Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	84	100	100	98
GROWTH
GROWTH	34	69	93	55
SAFETY
SAFETY	4	5	5	5
COMBINED
COMBINED	31	75	86	63

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Canadian Western Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 98 (better than 98% compared with alternatives) for 2024, Canadian Western Bank shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Canadian Western Bank. Price-to-Sales is 78 which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value for Canadian Western Bank's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 97% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. Compared with other companies in the same industry, dividend yields of Canadian Western Bank are expected to be higher than for 86% of all competitors (a Dividend Yield rank of 86). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 98, is a buy recommendation based on Canadian Western Bank's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Canadian Western Bank based on its detailed value metrics. 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	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	61	91	85	78
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	82	87	95	97
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	84	89	89	83
DIVIDEND YIELD
DIVIDEND YIELD	88	97	84	86
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	84	100	100	98

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Canadian Western Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Canadian Western Bank 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 half of the indicators below and half above average for Canadian Western Bank. Profit Growth has a rank of 77, which means that currently professionals expect the company to grow its profits more than 77% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 62 (above 62% of alternative investments). But Sales Growth has a below the median rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors, and Capital Growth also has a lower rank of 27. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Canadian Western Bank. 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 is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	47	80	83	42
PROFIT GROWTH
PROFIT GROWTH	8	10	76	77
CAPITAL GROWTH
CAPITAL GROWTH	n/a	85	48	27
STOCK RETURNS
STOCK RETURNS	39	53	97	62
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	34	69	93	55

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Canadian Western Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 5 (better than 5% compared with alternatives), the company Canadian Western Bank has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Canadian Western Bank 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 Canadian Western Bank and the other two below average. Refinancing is at 55, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. But Leverage is high with a rank of 2, meaning the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. Liquidity is also on the riskier side with a rank of 24, meaning the company generates less profit to service its debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 5 (worse than 95% compared with alternatives), Canadian Western Bank has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Canadian Western Bank are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Canadian Western Bank and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	4	2	2
REFINANCING
REFINANCING	10	53	61	55
LIQUIDITY
LIQUIDITY	11	12	17	24
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	4	5	5	5

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Canadian Western Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	65	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	95	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	19	96	^new
MARKET PULSE
MARKET PULSE	n/a	68	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	67	100	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Canadian Western Bank.
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