Laurentian is a Canadian bank that provides retail and business banking services to individuals and small business across Canada. It is headquartered in Montreal, QC.
Unlike the “big five” banks – CIBC, TD, Royal, Scotia and TD – Laurentian does not have overseas operations, which gives it a different risk profile: less risk caused by the Eurozone debt crisis and US economic health, but less diversification in the event of economic trouble here in Canada.
- The P/E Ratio is 8.70, which is much lower than the average historical P/E of 10.43, and the Graham Number is a whopping $79.23
- The Dividend Yield is 4.42%, and the coverage is 260%
- Forecast Growth Rate is marginal at 3.50%, compared with 5.71% historically, which is likely why the P/E Ratio is lower than its historical average
- The Gordon Return (Dividend + Growth) is 7.93%, which is low
- The Margin of Safety at current prices is 15%. This is quite high, and this gives me confidence to take the risk of buying the stock with a return below 10%.
I believe that the stock is fairly priced here.
- Buy LB.TO @ $44.30