VersaBank Common Shares (VBNK)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Revenue growth of 31.2% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

VersaBank Common Shares is a micro-cap financial services company valued at $568 million. The business generates $129 million in annual revenue with a 8.6% net margin. From a quality standpoint, VersaBank shows distressed Altman Z-Score of 0.1 warrants caution and modest 6% ROE. On valuation, the stock is reasonably priced at 24.1x earnings, with trades above its Graham Number with a negative 8% margin. Growth dynamics show revenue growing at 31.2% and profit growth of 35.9%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

VersaBank's 31% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer