National Bank of Canada (NA) AI Stock Analysis

• Market Cap: $68.73B
• Dividend Yield: 2.64%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.82
• Revenue Growth: 7.50%
• EPS Growth: -5.28%
• Country: CA
• Employees: 29,508
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 2.82
• Shares Outstanding: 390,304,320
• 10 Day Avg. Volume: 1,752,000
• 30 Day Avg. Volume: 1,970,101
• 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: 1.67
• Enterprise Value/Revenue: 5.24
• Enterprise Value/Gross Profit: 8.85
• Enterprise Value/Ebitda: 20.11
• 1Y Price Target: $169.44
• Price Target Upside: -3.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$197.00 ▲(11.87% Upside)

National Bank of Canada demonstrates strong financial performance and strategic growth, particularly in Wealth Management and Financial Markets. The stock's technical indicators show positive momentum, though caution is advised due to overbought signals. Valuation is fair, and the bank's robust earnings call supports confidence in future growth despite macroeconomic challenges.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and robust demand for services, supporting long-term financial health.

Wealth Management Growth

Significant growth in Wealth Management reflects successful client acquisition and retention, enhancing the bank's revenue diversification.

Robust Capital Position

A strong CET1 ratio ensures financial stability and the ability to withstand economic shocks, supporting sustainable growth.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting future investment and growth opportunities.

Increased Credit Loss Provisions

Rising credit loss provisions suggest potential asset quality issues, which could pressure profitability if economic conditions worsen.

Pressure on Deposit Spreads

Narrowing deposit spreads can reduce net interest income, challenging profitability and necessitating strategic adjustments.

National Bank of Canada Business Overview & Revenue Model

Company Description

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services comprise credit, and deposit and investment solutions, as well as international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment comprises investment solutions, trust services, banking services, lending services, and other wealth management solutions. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; financial products and services to individuals and businesses in Cambodia; and investment solutions, guaranteed investment certificates, mutual funds, notes, structured products, and monetization. It provides its services through a network of 384 branches and 927 banking machines. National Bank of Canada was founded in 1859 and is based in Montreal, Canada.

How the Company Makes Money

National Bank of Canada generates revenue through several key streams, primarily from interest income on loans and mortgages issued to customers, as well as fees from various banking services such as account maintenance, transactions, and financial advisory services. Additionally, the bank earns income from wealth management services, including asset management and investment advisory fees. Investment banking activities, such as underwriting and advisory services for corporate clients, also contribute significantly to its earnings. The bank's strong relationships with corporate clients and its commitment to expanding its digital banking capabilities further enhance its revenue potential. Overall, the diverse range of services and a robust customer base play a crucial role in the bank's financial performance.

National Bank of Canada Financial Statement Overview

Summary

National Bank of Canada shows strong financial health with significant revenue growth and profitability. However, increased leverage and potential cash flow conversion issues warrant close monitoring.

Income Statement

National Bank of Canada has shown impressive revenue growth with a 45.81% increase in the latest year, indicating strong market performance. The gross profit margin remains robust, and net profit margin is healthy, reflecting efficient cost management. However, the EBIT and EBITDA margins have slightly decreased, which could suggest rising operational costs or competitive pressures.

Balance Sheet

The bank maintains a strong equity base with a stable equity ratio, but the debt-to-equity ratio has increased significantly, indicating higher leverage. While return on equity remains solid, the rising debt levels could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains positive, and free cash flow has grown by 21.35%, showing improved cash generation capabilities. However, the operating cash flow to net income ratio is relatively low, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is healthy, indicating efficient cash management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.80B	10.83B	9.77B	9.62B	8.90B
Gross Profit	13.01B	10.84B	10.16B	9.62B	8.90B
EBITDA	5.79B	5.06B	0.00	4.73B	4.46B
Net Income	4.02B	3.82B	3.34B	3.38B	3.14B
Balance Sheet
Total Assets	576.92B	462.23B	423.58B	403.74B	355.62B
Cash, Cash Equivalents and Short-Term Investments	33.20B	35.75B	39.14B	36.34B	36.81B
Total Debt	149.84B	74.78B	53.51B	44.88B	43.64B
Total Liabilities	543.15B	436.68B	399.90B	381.99B	336.94B
Stockholders Equity	33.77B	25.55B	23.68B	21.74B	18.68B
Cash Flow
Free Cash Flow	4.13B	3.95B	4.51B	-2.59B	5.55B
Operating Cash Flow	4.63B	4.65B	5.17B	-1.92B	9.31B
Investing Cash Flow	-7.08B	-7.34B	-80.00M	-1.46B	1.39B
Financing Cash Flow	-1.18B	-1.10B	19.51B	-381.00M	-1.74B

National Bank of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 176.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NA, the sentiment is Positive. The current price of 176.1 is above the 20-day moving average (MA) of 172.37, above the 50-day MA of 163.91, and above the 200-day MA of 141.47, indicating a bullish trend. The MACD of 3.39 indicates Positive momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NA.

National Bank of Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NA	78 Outperform	$68.73B	17.30	13.53%	2.64%	7.50%	-5.28%
BNS	77 Outperform	$125.25B	17.36	9.19%	4.32%	-3.65%	-1.73%
RY	75 Outperform	$327.44B	16.58	15.28%	2.58%	2.13%	25.16%
CM	74 Outperform	C$117.32B	14.68	13.69%	3.07%	-3.13%	18.22%
TD	74 Outperform	$218.22B	11.16	16.78%	3.34%	3.07%	144.41%
BMO	74 Outperform	$126.47B	15.57	10.10%	3.61%	-1.30%	20.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

National Bank of Canada Corporate Events

National Bank of Canada Reports Strong Q1 2025 Results and Strategic Acquisition

National Bank of Canada reported an 8% increase in net income for the first quarter of 2025, reaching $997 million, driven by revenue growth across all business segments. The recent acquisition of Canadian Western Bank is expected to accelerate domestic growth and enhance the bank’s capabilities, despite challenges posed by macroeconomic and geopolitical uncertainties.

National Bank Completes CWB Tier 1 Capital Reorganization

National Bank of Canada and Canadian Western Bank have completed a reorganization of CWB’s Tier 1 capital, resulting in the exchange of CWB’s First Preferred Shares for new National Bank First Preferred Shares. This strategic move will culminate in an amalgamation of the two banks under the National Bank of Canada name, which is expected to enhance operational efficiencies and strengthen the combined entity’s market position.