VersaBank Revenue vs. Return On Equity

VBNK Stock   21.98  0.55  2.44%   
Taking into consideration VersaBank's profitability measurements, VersaBank may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess VersaBank's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2011-07-31
Previous Quarter
73.5 M
Current Value
27 M
Quarterly Volatility
12.9 M
 
Yuan Drop
 
Covid
At this time, VersaBank's EV To Sales is very stable compared to the past year. As of the 11th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.58, while Price To Sales Ratio is likely to drop 2.68. At this time, VersaBank's Income Quality is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.771.99
Fairly Down
Slightly volatile
Net Profit Margin0.220.3561
Way Down
Slightly volatile
Operating Profit Margin1.10.61
Way Up
Slightly volatile
Pretax Profit Margin0.30.4908
Way Down
Slightly volatile
Return On Assets0.00570.0082
Way Down
Slightly volatile
Return On Equity0.05380.0996
Way Down
Slightly volatile
For VersaBank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VersaBank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VersaBank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VersaBank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VersaBank over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in VersaBank Stock, please use our How to Invest in VersaBank guide.
Please note, there is a significant difference between VersaBank's value and its price as these two are different measures arrived at by different means. Investors typically determine if VersaBank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VersaBank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

VersaBank Return On Equity vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining VersaBank's current stock value. Our valuation model uses many indicators to compare VersaBank value to that of its competitors to determine the firm's financial worth.
VersaBank is rated first in revenue category among its peers. It is rated second in return on equity category among its peers . The ratio of Revenue to Return On Equity for VersaBank is about  900,041,425 . At this time, VersaBank's Total Revenue is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value VersaBank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for VersaBank's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

VersaBank Revenue vs. Competition

VersaBank is rated first in revenue category among its peers. Market size based on revenue of Financials industry is at this time estimated at about 118.79 Million. VersaBank totals roughly 108.64 Million in revenue claiming about 91% of equities under Financials industry.

VersaBank Return On Equity vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

VersaBank

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
108.64 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

VersaBank

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

VersaBank Return On Equity Comparison

VersaBank is currently under evaluation in return on equity category among its peers.

VersaBank Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in VersaBank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VersaBank will eventually generate negative long term returns. The profitability progress is the general direction of VersaBank's change in net profit over the period of time. It can combine multiple indicators of VersaBank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income117.9 K112 K
Operating Income66.3 M49 M
Income Before Tax66.3 M69.6 M
Total Other Income Expense Net66.3 M69.6 M
Net Income48.5 M50.9 M
Income Tax Expense17.8 M18.7 M
Net Income Applicable To Common Shares24.9 M18.4 M
Net Interest Income115.1 M69.2 M
Interest Income263.7 M136.4 M
Net Income From Continuing Ops48.5 M27.9 M
Change To Netincome20.6 M21.6 M
Net Income Per Share 1.53  1.61 
Income Quality 6.86  7.20 
Net Income Per E B T 0.73  0.62 

VersaBank Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on VersaBank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of VersaBank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the VersaBank's important profitability drivers and their relationship over time.

Use VersaBank in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if VersaBank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VersaBank will appreciate offsetting losses from the drop in the long position's value.

VersaBank Pair Trading

VersaBank Pair Trading Analysis

The ability to find closely correlated positions to VersaBank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VersaBank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back VersaBank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling VersaBank to buy it.
The correlation of VersaBank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as VersaBank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VersaBank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for VersaBank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your VersaBank position

In addition to having VersaBank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Iron
Iron Theme
Companies involved in production of steel and iron. The Iron theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Iron Theme or any other thematic opportunities.
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When determining whether VersaBank is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if VersaBank Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Versabank Stock. Highlighted below are key reports to facilitate an investment decision about Versabank Stock:
Check out World Market Map.
To learn how to invest in VersaBank Stock, please use our How to Invest in VersaBank guide.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
To fully project VersaBank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of VersaBank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include VersaBank's income statement, its balance sheet, and the statement of cash flows.
Potential VersaBank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although VersaBank investors may work on each financial statement separately, they are all related. The changes in VersaBank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on VersaBank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.