Earnings Review · 26 August 2026
National Bank of Beat the Quarter, and Still Fails Our Ethical Screen. Here’s Why We Pass.
The print
Revenue $3.90B. EPS $2.45 vs $2.30 expected.
Did the flow confirm the move?
Underlying money flow is negative: sellers in control on balance going in.
Give the business its due
The business itself is genuinely strong: revenue growing about 18%, net margins near 33%, a moderate competitive moat.
The valuation lens
Our framework labels the valuation FAIR. Fair value lands near $125 against a $157 share price, a margin of safety of about -20%. The trailing multiple sits around 19 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Business activity. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
There is no direct compliant equivalent in the same industry on our screen, the honest answer is to screen a step wider rather than reach for a false substitute.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. We do not confuse a strong quarter with a suitable holding.
This is analysis, not financial advice. Always manage your risk.
