National Bank of Canada (NA.TO) stock analysis

In our weekly check, National Bank of Canada is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7.

About National Bank of Canada

National Bank of Canada is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as NA.TO.

What our checks show for NA.TO

Red flags

• The net margin fell by 20.3 points over 5 years, to 14.9%: the company keeps less of each sale as profit.
• The gross margin fell by 55.2 points, to 44.8%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 23.2% a year.
• The stock has fallen as much as 62% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.1%.

Warning signs

• Recovering from its deepest fall took about 1.7 years.
• The share count grew by 12.1% in 2 years: each shareholder owns a smaller slice.

Strengths

• Operating cash flow is 1.32x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 12.6% a year over the next years.
• Analysts expect the net margin to improve by 18.9 points from today's 14.9%.
• Revenue grew 50.1% a year over the last 3 years.
• Net profit grew 12.8% a year over the last 3 years.
• Free cash flow is 18.7% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-12-02

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BCS · ING · SMFG · CM · BNS · BMO

Questions

What grade does National Bank of Canada (NA.TO) have?

In our weekly check, National Bank of Canada is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NA.TO stock?

This week's biggest flags for National Bank of Canada: Margins falling, Gross margin falling, Weak revenue forecast. In total 9 of 25 checks show a warning or a red flag.

What does National Bank of Canada do?

National Bank of Canada is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as NA.TO.

When does National Bank of Canada report earnings next?

The next earnings report is expected on 2026-12-02. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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