VersaBank Common Shares (VBNK)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what I can verify. VersaBank is a $568.3M market-cap regional lender operating digital banking in Canada and the U.S., plus DRTC cybersecurity and Digital Meteor. It is tiny—131 employees—and the latest filed quarter, fiscal Q3 2026, showed revenue of $38.8M and net income of $10.1M, a 25.92% margin. The provided growth figures are 22.88% for revenue and 52.84% for profit, which is impressive if durable. But quality is mixed. FairStock's calculated return on equity is only 6.19%, and ROCE is 0.55%. At the 2026-10-13 close of $22.65, FairStock's P/E is 29.80 and P/B is 1.85; paying nearly two times book for a 6% ROE leaves little margin of safety. The PEG of 0.56 looks attractive, but it depends on high growth continuing. FairStock's Piotroski F-Score is 3/9, suggesting weak financial signals, and beta of 1.00 means no special defensiveness. The dividend yield is only 0.31%. I cannot assess CET1 capital, net interest margin, credit-loss rates, or underwriting quality because those bank-specific measures are not in the data; combined ratio is also absent. That is a serious gap for a lender. The computed Lynch category is none because only 0 years of filed annual results are available and three are needed, so there is no long earnings record. With the 52-week range at $11.25–$25.05, the market is pricing a lot of future success. I would need more evidence on credit and capital before calling this a bargain.

In plain English: VersaBank is a small digital bank that takes deposits and makes loans in Canada and the U.S., and it also runs technology businesses. In its latest reported quarter it earned $10.1 million on $38.8 million of revenue, and profit has been growing quickly. However, the shares look expensive compared with current profit and the company's net worth, and the available data is too thin to judge important banking risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer