VersaBank (VBNK) AI Stock Analysis

VersaBank is a federally chartered Canadian bank headquartered in London, Canada, that delivers deposit, lending, and commercial banking services across the country. Its deposit offerings include guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts, and tax-free savings accounts backed by deposit insurance. The bank provides lending services through point of sale financing by acquiring loan and lease receivables from finance companies across multiple industries. VersaBank also offers commercial banking solutions, including commercial real estate financing, public sector and infrastructure financing, condominium financing, and residential mortgages to support business and institutional clients.

Between FY2020 and FY2025, VersaBank achieved a 5-year revenue compound annual growth rate of 6.9%. Annual revenue rose from $94.7M in FY2021 to $132.5M in FY2022 and $237.9M in FY2023, before falling 53.1% to $111.6M in FY2024 and rebounding 7.7% to $120.2M in FY2025. Operating margin was 34.5% in FY2025, while net income stood at $28.5M with a net margin of 23.7% and EPS of $0.84. Over the trailing twelve months, revenue reached $146.5M with an operating margin of 35.5% and EPS of $0.76. In the latest quarter ended July 31, 2026, quarterly revenue grew 28.4% year-over-year, accompanied by 55.0% year-over-year quarterly earnings growth.

As of July 31, 2026, VersaBank held $490.3M in cash and short-term investments alongside total debt of $107.3M, resulting in net cash of $383.0M. Total assets reached $6.88B and shareholders' equity stood at $565.9M, supporting a debt-to-equity ratio of 0.19 and a current ratio of 0.09. In FY2025, operating cash flow was $44.5M and free cash flow was $43.5M. Capital deployment in FY2025 included $954,000 for capital expenditures, $9.1M for share buybacks, and $3.2M in dividends paid.

VersaBank shares closed at $22.28 on October 16, 2026, with a market capitalization of $722.3M and an enterprise value of $337.2M. The stock trades at a trailing P/E of 29.3x, above the median of its US-listed Financial Services peers of 12.1x, and a forward P/E of 11.6x compared to the peer median of 10.8x. Its price-to-sales ratio is 4.9x versus the peer median of 3.2x. Over the past year, the stock returned 84.9%, outperforming the 16.8% return of the S&P 500 benchmark.

VersaBank pays an annual forward dividend of $0.07 per share, representing a dividend yield of 0.32% and a payout ratio of 6.7%. The dividend is distributed on a quarterly frequency and has been paid for 9 consecutive years. The 5-year annualized dividend growth rate stands at -0.9%, with the most recent ex-dividend date recorded on October 9, 2026.

Wall Street coverage consists of 1 Strong Buy and 2 Buy ratings, with zero Hold or Sell recommendations. Analysts set a mean price target of $25.50, representing an upside of 14.5% from the last close of $22.28. For the current fiscal year ending October 31, 2026, analysts estimate revenue of $155.8M and EPS of $1.06, reflecting 24.9% EPS growth. The bank beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is December 9, 2026.

This page is an AI-written research summary of VersaBank (VBNK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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