Laurentian Bank (LB) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: 5.67%
• Average Volume (3M): 201.00K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.82
• Revenue Growth: -9.93%
• EPS Growth: N/A
• Country: CA
• Employees: 2,800
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.78
• Shares Outstanding: 44,553,370
• 10 Day Avg. Volume: 142,263
• 30 Day Avg. Volume: 201,000
• PEG Ratio: 1.88
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 7.07
• Enterprise Value/Market Cap: 13.33
• Enterprise Value/Revenue: 8.30
• Enterprise Value/Gross Profit: 21.35
• Enterprise Value/Ebitda: 87.23
• 1Y Price Target: $28.49
• Price Target Upside: -14.02% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.3
• Revenue Forecast (FY): $1.02B

• Rating: 74 Outperform
• Price Target: C$35.00 ▲(5.64% Upside)

Laurentian Bank's strong financial performance and reasonable valuation are key strengths, supported by positive technical indicators. However, economic challenges reflected in the earnings call, such as revenue and income declines, slightly offset these strengths.

Positive Factors

Negative Factors

Laurentian Bank Business Overview & Revenue Model

Company Description

Laurentian Bank (LB) is a Canadian financial institution headquartered in Montreal, Quebec. Established in 1846, the bank primarily serves retail and commercial clients across Canada. Its core sectors include personal and commercial banking, wealth management, and capital markets. Laurentian Bank offers a wide range of products and services, including savings and checking accounts, mortgages, loans, investment services, and financial advisory solutions.

How the Company Makes Money

Laurentian Bank generates revenue through several key streams. Primarily, the bank earns income from interest on loans provided to customers, including personal and commercial loans, mortgages, and lines of credit. Additionally, it receives fees from various banking services, such as account maintenance, transaction fees, and advisory services in wealth management. The bank also generates income through investment activities and trading in capital markets. Significant partnerships with other financial institutions and investment firms enhance its service offerings and revenue potential. Furthermore, the bank's focus on digital banking solutions has allowed it to reduce operational costs and increase efficiency, contributing positively to its earnings.

Laurentian Bank Financial Statement Overview

Summary

Laurentian Bank shows strong revenue growth and cash flow generation, indicating financial health. However, high leverage and moderate profitability margins suggest potential risks. The company is on a solid growth trajectory but should focus on improving cost efficiency and reducing leverage.

Income Statement

Laurentian Bank's income statement shows a strong revenue growth rate of 16.17% in the TTM, indicating robust top-line expansion. The gross profit margin of 38.88% is healthy, though the net profit margin of 6.29% suggests room for improvement in cost management. The EBIT and EBITDA margins are moderate at 7.67% and 9.57%, respectively, reflecting stable operational efficiency.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 6.84, which suggests significant leverage and potential risk in a rising interest rate environment. However, the return on equity of 5.23% shows that the company is generating modest returns on shareholder investments. The equity ratio of 5.72% highlights a relatively low equity base compared to total assets.

Cash Flow

The cash flow statement reveals impressive free cash flow growth of 450.70% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 0.23 indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.94 suggests that most of the net income is being converted into free cash flow, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	2.58B	2.55B	1.78B	1.56B	1.71B
Gross Profit	921.46M	942.70M	963.90M	977.36M	952.96M	854.71M
EBITDA	225.56M	35.48M	270.39M	328.18M	134.11M	185.93M
Net Income	149.05M	-5.50M	181.09M	226.58M	57.07M	114.08M
Balance Sheet
Total Assets	49.93B	47.40B	49.89B	50.72B	45.08B	44.17B
Cash, Cash Equivalents and Short-Term Investments	1.59B	1.68B	1.46B	2.25B	1.11B	1.14B
Total Debt	19.53B	19.26B	18.35B	17.97B	16.80B	15.59B
Total Liabilities	47.08B	44.57B	47.03B	47.94B	42.44B	41.56B
Stockholders Equity	2.86B	2.83B	2.86B	2.78B	2.64B	2.61B
Cash Flow
Free Cash Flow	654.63M	161.76M	-616.62M	840.93M	65.56M	657.48M
Operating Cash Flow	693.88M	198.78M	-577.92M	903.98M	93.66M	698.68M
Investing Cash Flow	-544.44M	-61.45M	665.23M	-759.03M	-16.61M	-599.87M
Financing Cash Flow	-275.00M	-114.48M	-97.08M	-147.80M	-73.76M	-123.25M

Laurentian Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LB, the sentiment is Positive. The current price of 33.13 is above the 20-day moving average (MA) of 33.00, above the 50-day MA of 32.69, and above the 200-day MA of 29.29, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 39.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LB.

Laurentian Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NA	78 Outperform	$61.80B	15.30	13.25%	2.84%	9.25%	0.34%
CM	77 Outperform	$110.53B	14.30	13.40%	3.27%	-0.39%	20.28%
TD	75 Outperform	$199.25B	9.99	17.36%	3.60%	7.92%	175.59%
BMO	74 Outperform	$123.64B	15.10	10.20%	3.73%	1.78%	32.32%
LB	74 Outperform	$1.48B	10.85	5.47%	5.67%	-9.93%	―
BNS	71 Outperform	$116.74B	17.50	8.64%	4.60%	-2.54%	-6.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Laurentian Bank Corporate Events

Laurentian Bank Declares Dividend on Preferred Shares

Laurentian Bank of Canada has declared a dividend of $0.38725 on its preferred shares Series 13, payable on December 15, 2025. These dividends are eligible for reinvestment under the Bank’s Shareholder Dividend Reinvestment and Share Purchase Plan, allowing shareholders to reinvest dividends in newly issued common shares without additional charges. This move reflects the bank’s ongoing commitment to providing value to its shareholders and could enhance shareholder engagement by offering flexible investment options.

The most recent analyst rating on (TSE:LB) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on Laurentian Bank stock, see the TSE:LB Stock Forecast page.

Laurentian Bank Reduces USD Base Rate to 7.50%

Laurentian Bank of Canada has announced a reduction in its USD base rate in Canada by 25 basis points, bringing it down from 7.75% to 7.50%, effective October 30, 2025. This move is likely to impact the bank’s operations by potentially making its financial products more attractive to customers, thereby enhancing its competitive positioning in the banking industry.

The most recent analyst rating on (TSE:LB) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on Laurentian Bank stock, see the TSE:LB Stock Forecast page.

Laurentian Bank Reduces Prime Lending Rate

Laurentian Bank of Canada has announced a reduction in its prime lending rate, as well as that of B2B Bank, by 25 basis points from 4.70% to 4.45%, effective October 30, 2025. This move is likely to impact the bank’s operations by potentially increasing borrowing and stimulating economic activity, which may enhance its competitive positioning in the financial services industry.

The most recent analyst rating on (TSE:LB) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on Laurentian Bank stock, see the TSE:LB Stock Forecast page.

Laurentian Bank Corrects Management Proxy Circular Deadline

Laurentian Bank of Canada has issued a correction to its Management Proxy Circular, informing shareholders of a new deadline for submitting proposals for the next circular. The original circular published in March contained a clerical error, which has now been amended to set the deadline for November 20, 2025. This correction ensures shareholders have accurate information for participation, potentially affecting shareholder engagement and governance processes.

The most recent analyst rating on (TSE:LB) stock is a Hold with a C$33.00 price target. To see the full list of analyst forecasts on Laurentian Bank stock, see the TSE:LB Stock Forecast page.

Laurentian Bank’s Earnings Call: Growth Amid Challenges

Laurentian Bank’s recent earnings call presented a mixed sentiment, reflecting both strategic growth and economic hurdles. The bank showcased progress in commercial real estate and dealer network expansion, backed by a strong liquidity and capital position. However, challenges were evident with declines in total revenue, net income, and EPS, alongside an increased efficiency ratio and gross impaired loans.

Laurentian Bank Reports Q3 2025 Earnings Growth

Laurentian Bank of Canada is a financial institution that provides a variety of banking services, including deposit, investment, loan, securities, and trust services, primarily operating in the Canadian financial sector with a focus on specialized commercial banking.

Laurentian Bank Reports Improved Q3 2025 Financial Results

Laurentian Bank of Canada reported a net income of $37.5 million for the third quarter of 2025, showing an improvement from the previous year’s $34.1 million. Despite a challenging economic environment, the bank’s disciplined approach to risk management and strong liquidity and capital foundation have supported its strategic plan, as highlighted by CEO Éric Provost.

The most recent analyst rating on (TSE:LB) stock is a Hold with a C$35.00 price target. To see the full list of analyst forecasts on Laurentian Bank stock, see the TSE:LB Stock Forecast page.

Laurentian Bank Declares Quarterly Dividend and Offers Reinvestment Plan

Laurentian Bank of Canada has announced a regular quarterly dividend of 47 cents per share on its common shares, payable on November 3, 2025, to shareholders of record as of October 1, 2025. The dividends are eligible under the Bank’s Shareholder Dividend Reinvestment and Share Purchase Plan, allowing holders to reinvest dividends in new shares without additional costs, which could enhance shareholder value and engagement.

The most recent analyst rating on (TSE:LB) stock is a Hold with a C$35.00 price target. To see the full list of analyst forecasts on Laurentian Bank stock, see the TSE:LB Stock Forecast page.