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Upturn AI SWOT - About
VersaBank (VBNK)
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Upturn Advisory Summary
08/14/2025: VBNK (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
4 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $11.5
1 Year Target Price $11.5
| 1 | Strong Buy |
| 2 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 97.85% | Avg. Invested days 61 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 344.25M USD | Price to earnings Ratio 13.18 | 1Y Target Price 11.5 |
Price to earnings Ratio 13.18 | 1Y Target Price 11.5 | ||
Volume (30-day avg) 4 | Beta 1.16 | 52 Weeks Range 8.50 - 18.29 | Updated Date 08/15/2025 |
52 Weeks Range 8.50 - 18.29 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 0.94% | Basic EPS (TTM) 0.8 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 28.87% | Operating Margin (TTM) 40.12% |
Management Effectiveness
Return on Assets (TTM) 0.68% | Return on Equity (TTM) 6.87% |
Valuation
Trailing PE 13.18 | Forward PE 7.79 | Enterprise Value 107659008 | Price to Sales(TTM) 3.12 |
Enterprise Value 107659008 | Price to Sales(TTM) 3.12 | ||
Enterprise Value to Revenue 5.15 | Enterprise Value to EBITDA - | Shares Outstanding 32518800 | Shares Floating 27947945 |
Shares Outstanding 32518800 | Shares Floating 27947945 | ||
Percent Insiders 31.26 | Percent Institutions 35.76 |
Upturn AI SWOT
VersaBank
Company Overview
History and Background
VersaBank was founded in 1979 in Petrolia, Ontario, as a credit union. It transitioned to a Schedule I chartered bank in 2002. Initially focused on traditional banking, it shifted towards a branchless, digital model to cater to specific niche markets and B2B partnerships.
Core Business Areas
- Digital Banking Services: Provides deposit and lending services primarily through intermediaries, including brokers and fintech companies. Offers specialized deposit accounts and mortgages.
- Cybersecurity Services: Via its subsidiary, DRT Cyber Inc., offers cybersecurity solutions focusing on threat detection, incident response, and managed security services.
Leadership and Structure
David Taylor serves as the President and CEO. The bank operates with a traditional board of directors overseeing its operations. DRT Cyber is a wholly-owned subsidiary.
Top Products and Market Share
Key Offerings
- Mortgage Lending: Offers a variety of mortgage products through brokers and other intermediaries. Market share is relatively small compared to major Canadian banks; specific data isn't readily available. Competitors include major Canadian banks like RBC, TD, and BMO, and other mortgage lenders.
- Deposit Accounts: Provides deposit accounts aimed at specific niches, offering competitive interest rates. Market share data is not publicly available. Competitors include online banks and credit unions.
- Cybersecurity Solutions (DRT Cyber): Provides cybersecurity services. Market share is growing but remains a fraction of the overall cybersecurity market. Competitors include large cybersecurity firms like CrowdStrike, Palo Alto Networks, and smaller regional providers.
Market Dynamics
Industry Overview
The banking industry is evolving with increasing digitization and competition from fintech companies. Cybersecurity is a rapidly growing sector due to increasing cyber threats.
Positioning
VersaBank positions itself as a technology-focused, branchless bank, specializing in niche markets and B2B partnerships. Its cybersecurity division provides synergistic opportunities.
Total Addressable Market (TAM)
The combined TAM for the Canadian mortgage market, deposit market, and cybersecurity services is estimated to be in the hundreds of billions of dollars. VersaBank's positioning allows it to address specific segments of these markets, competing with larger incumbents.
Upturn SWOT Analysis
Strengths
- Branchless business model allows for lower overhead costs.
- Technology-focused approach enables efficient operations.
- Cybersecurity division provides diversification and synergy.
- Focus on niche markets reduces direct competition with larger banks.
- Experienced management team.
Weaknesses
- Smaller size compared to major banks limits capital access.
- Reliance on intermediaries for distribution.
- Limited brand recognition among consumers.
- Profitability dependent on cybersecurity sector success.
- Relatively undiversified revenue stream.
Opportunities
- Further expansion into digital banking services.
- Increased demand for cybersecurity solutions.
- Strategic partnerships with fintech companies.
- Acquisitions to expand service offerings.
- Growth in specialized lending products.
Threats
- Increasing competition from fintech companies.
- Regulatory changes impacting the banking industry.
- Economic downturn affecting loan performance.
- Cybersecurity threats targeting the bank itself.
- Rising interest rates affecting mortgage demand.
Competitors and Market Share
Key Competitors
- RY
- TD
- BMO
- CSCO
- PANW
Competitive Landscape
VersaBank's competitive advantage lies in its niche focus and digital model. However, it faces competition from larger, well-established banks and established cybersecurity firms.
Major Acquisitions
DRT Cyber Inc.
- Year: 2017
- Acquisition Price (USD millions): 11.1
- Strategic Rationale: To diversify into cybersecurity services and provide a synergistic offering alongside its digital banking platform.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends would analyze past revenue and profit growth rates, requiring specific data for calculation.
Future Projections: Future growth projections would be based on analyst estimates and company guidance, dependent on current market conditions.
Recent Initiatives: Recent initiatives include expanding cybersecurity services, forming new partnerships, and focusing on digital lending.
Summary
VersaBank is a niche digital bank with a growing cybersecurity arm. Its branchless model provides efficiency but lacks the brand recognition of major banks. Expansion in cybersecurity and strategic partnerships are key to future growth, but competition and economic conditions pose threats.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (SEDAR, EDGAR)
- Financial news sources
- Industry reports
- Analyst research
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market data is dynamic and subject to change. Conduct thorough research before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About VersaBank
Exchange NASDAQ | Headquaters London, ON, Canada | ||
IPO Launch date 2021-08-27 | Interim CEO & Vice Chair Ms. Susan Teresa McGovern B.Sc. | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 121 | Website https://www.versabank.com |
Full time employees 121 | Website https://www.versabank.com | ||
VersaBank provides various banking products and services in Canada and the United States. The company operates through three segments: Digital Banking Canada, Digital Banking USA, and DRTC (cybersecurity services and banking and financial technology development). It offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial real estate mortgages and loans, public sector, leases, and other financing. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.
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