5 Banks Boosting Earnings

Royal Bank of Canada makes the list

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Apr 29, 2021
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The following banks have grown their earnings per share over the past five-year period. According to the GuruFocus discounted cash flow calculator as of April 29, all of them also trade with a margin of safety.

Royal Bank of Canada

Royal Bank of Canada's (RY, Financial) earnings per share have climbed 4.70% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 17.32% margin of safety at $92.59 per share. The price-earnings ratio is 14.32. The share price has been as high as $95.14 and as low as $57.11 in the last year; it is currently 2.68% below its 52-week high and 62.13% above its 52-week low.

The bank has a market cap of $132 billion.

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The company's largest guru shareholder is Jeremy Grantham (Trades, Portfolio) with 0.07% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.05% and Pioneer Investments (Trades, Portfolio) with 0.04%.

The Toronto-Dominion Bank

The earnings per share of The Toronto-Dominion Bank (TD, Financial) have grown 24.81% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 28.65% margin of safety at $69.27 per share. The price-earnings ratio is 24.81. The share price has been as high as $84.7 and as low as $35.65 in the last year; it is currently 18.22% below its 52-week high and 94.31% above its 52-week low.

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The bank has a market cap of $120.33 billion.

The company's largest guru shareholder is Pioneer Investments with 0.04% of outstanding shares, followed by Simons' firm with 0.03% and Grantham with 0.03%.

U.S. Bancorp

U.S. Bancorp.'s (USB, Financial) earnings per share have risen 14.78% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 6.56% margin of safety at $56.15 per share. The price-earnings ratio is $14.78. The share price has been as high as $58.45 and as low as $28.36 in the last year; it is currently 3.93% below its 52-week high and 98.03% above its 52-week low.

The U.S. financial services company has a market cap of $84.07 billion and an enterprise value of $78.96 billion.

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With an 8.70% stake, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Chris Davis (Trades, Portfolio) with 1.12%, Barrow, Hanley, Mewhinney & Strauss with 0.96% and First Eagle Investment (Trades, Portfolio) with 0.66%.

Bank of Montreal

The earnings per share of Bank of Montreal (BMO, Financial) have increased 4.10% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 5.57% margin of safety at $91.09 per share. The price-earnings ratio is 13.88. The share price has been as high as $92.22 and as low as $43.26 in the last year; it is currently 1.23% below its 52-week high and 110.56% above its 52-week low.

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The bank has a market cap of $58.94 billion and an enterprise value of $22.64 billion.

The company's largest guru shareholder is Pioneer Investments with 0.09% of outstanding shares.

SVB Financial Group

SVB Financial Group's (SIVB, Financial) earnings per share have climbed 33.60% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 9.74% margin of safety at $14.46 per share. The price-earnings ratio is 20.67. The share price has been as high as $16.91 and as low as $6.98 in the last year; it is currently 14.49% below its 52-week high and 107.02% above its 52-week low.

The company, which provides loans and ancillary financial services to startups, private equity and venture capital firms, has a market cap of $28.01 billion and an enterprise value of $12.244 billion.

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With a 1.36% stake, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.60% and Pioneer Investments with 0.49%.

Disclosure: I do not own any stocks mentioned.

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