Laurentian Bank (LB) AI Stock Analysis

• Market Cap: C$1.79B
• Dividend Yield: 4.67%
• Average Volume (3M): 454.49K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.75
• Revenue Growth: -11.26%
• EPS Growth: N/A
• Country: CA
• Employees: 2,800
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 44,583,717
• 10 Day Avg. Volume: 438,553
• 30 Day Avg. Volume: 454,487
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$40.56
• Price Target Upside: 0.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.11
• Revenue Forecast (FY): C$1.00B

• Rating: 68 Neutral
• Price Target: C$44.00 ▲(9.32% Upside)

Laurentian Bank's stock score reflects a balance of strengths and challenges. The most significant factor is the mixed financial performance, with improvements in profitability offset by revenue decline and high leverage. Technical analysis indicates strong momentum, though overbought conditions suggest caution. Valuation is fair, offering a good dividend yield. The earnings call presents a mixed sentiment, with strategic growth tempered by economic challenges.

Positive Factors

Commercial Real Estate Growth

The growth in commercial real estate loans indicates strong market positioning and expertise, contributing to long-term revenue stability and diversification.

Stable Liquidity and Capital Position

A strong CET1 ratio reflects robust capital management, ensuring financial stability and the ability to withstand economic fluctuations.

Resilient Dealer Network

Expansion of the dealer network enhances market reach and supports revenue growth, particularly in niche segments like agriculture and power sports.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining sales growth, which could impact long-term profitability and market competitiveness.

Increased Gross Impaired Loans

Rising impaired loans suggest potential credit quality issues, which could lead to higher provisions and impact financial health.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially affecting the bank's ability to invest in growth opportunities.

Laurentian Bank Business Overview & Revenue Model

Company Description

Laurentian Bank of Canada, together with its subsidiaries, provides various financial services to personal, business, and institutional customers in Canada and the United States. It operates through three segments: Personal Banking, Commercial Banking, and Capital Markets. The company offers notice, demand, and term deposits; commercial, residential mortgage, and personal loans; real estate, and equipment and inventory financing; and credit life and disability insurance products. It also provides investment securities services; research, market analysis, and advisory services; corporate underwriting services for debt and equity; and administrative, foreign exchange, and trustee services. The company sells its products through the bank's financial clinics, advisors, broker channels, and digital platforms. Laurentian Bank of Canada was founded in 1846 and is headquartered in Montréal, Canada.

How the Company Makes Money

Laurentian Bank generates revenue primarily through interest income from loans and mortgages, which constitutes a significant portion of its earnings. The bank charges interest on personal, commercial, and real estate loans, which is a key revenue stream. Additionally, the bank earns fee-based income from various services, including transaction fees, account maintenance fees, and advisory services in wealth management. The bank also generates income from its investment portfolio, which includes securities and other financial instruments. Strategic partnerships with other financial institutions and service providers enhance its product offerings and customer reach, contributing further to its revenue streams.

Laurentian Bank Financial Statement Overview

Summary

Laurentian Bank's financial performance is mixed. Improvements in profitability margins and ROE are positive, but declining revenue growth and high leverage are significant concerns. Cash flow challenges further complicate the outlook, despite some operational efficiency improvements.

Income Statement

The income statement shows a decline in revenue growth, with a negative growth rate of -1.14% in the latest year, indicating potential challenges in generating sales. The gross profit margin remains healthy, but net profit margin has been volatile, improving from a negative margin in 2024 to a positive one in 2025. EBIT and EBITDA margins have also shown improvement, suggesting better operational efficiency. However, the overall revenue decline and past negative margins pose concerns.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, increasing from 5.31 in 2020 to 6.27 in 2024, indicating significant leverage. Return on equity has been inconsistent, with a negative ROE in 2024 but a positive trend in 2025. The equity ratio remains stable, suggesting a reasonable proportion of equity financing. The high leverage presents a risk, but the recent improvement in ROE is a positive sign.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, with a -47.78% change in the latest year. The operating cash flow to net income ratio indicates some improvement, but the free cash flow to net income ratio has been inconsistent. The negative free cash flow growth is concerning, although the ability to generate operating cash flow relative to net income shows some resilience.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.34B	2.58B	2.55B	1.78B	1.56B
Gross Profit	921.76M	942.70M	963.90M	977.36M	952.96M
EBITDA	218.85M	35.48M	270.39M	328.18M	134.11M
Net Income	139.87M	-5.50M	181.09M	226.58M	57.07M
Balance Sheet
Total Assets	50.15B	47.40B	49.89B	50.72B	45.08B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.68B	1.46B	2.25B	1.11B
Total Debt	19.50B	19.26B	18.35B	17.97B	16.80B
Total Liabilities	47.27B	44.57B	47.03B	47.94B	42.44B
Stockholders Equity	2.88B	2.83B	2.86B	2.78B	2.64B
Cash Flow
Free Cash Flow	341.84M	161.76M	-616.62M	840.93M	65.56M
Operating Cash Flow	381.73M	198.78M	-577.92M	903.98M	93.66M
Investing Cash Flow	-286.72M	-61.45M	665.23M	-759.03M	-16.61M
Financing Cash Flow	-94.24M	-114.48M	-97.08M	-147.80M	-73.76M

Laurentian Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 40.25 is above the 20-day moving average (MA) of 38.71, above the 50-day MA of 35.15, and above the 200-day MA of 30.59, indicating a bullish trend. The MACD of 1.59 indicates Positive momentum. The RSI at 86.34 is Negative, neither overbought nor oversold. The STOCH value of 90.32 is Negative, 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
AGF.B	79 Outperform	C$1.06B	9.41	9.85%	3.01%	11.23%	30.44%
AD.UN	75 Outperform	C$958.46M	5.69	15.52%	6.43%	11.16%	-14.26%
MKP	69 Neutral	C$901.61M	13.50	10.50%	7.33%	7.74%	-31.96%
LB	68 Neutral	C$1.79B	14.18	5.11%	4.67%	-11.26%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBNK	67 Neutral	C$654.56M	22.69	6.08%	0.49%	3.31%	-39.12%
EQB	65 Neutral	C$3.88B	15.45	8.72%	2.09%	-7.50%	-34.45%

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.