• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Should EQB’s New Share Buyback Plan Shape How Investors View Its Capital Priorities (TSX:EQB)?

    Simply Wall St·01/08/2026 23:30:53
    Listen to the news
    • EQB Inc. (TSX:EQB) recently launched a normal course issuer bid allowing it to repurchase up to 2,215,794 common shares, or 5.94% of its issued capital, by January 5, 2027, with all bought-back shares to be cancelled.
    • This move, backed by Board approval on January 2, 2026, points to management prioritizing capital return and potential per-share value enhancement through a smaller share count.
    • We’ll now examine how EQB’s newly authorized share repurchase plan could influence its investment narrative and capital allocation priorities.

    These 16 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

    EQB Investment Narrative Recap

    To own EQB, you need to believe in its digital banking model and its ability to manage credit risk while restoring earnings momentum after a weaker 2025. The newly approved normal course issuer bid does not materially change the main near term catalyst, which is a recovery in profitability, or the key risk, which remains credit losses and impaired loans in concentrated mortgage segments.

    Among recent developments, EQB’s pattern of increasing dividends, including the CAD 0.57 per share payout declared on December 3, 2025, sits alongside this repurchase plan as another way capital is being returned to shareholders. How both actions intersect with rising funding costs and an elevated efficiency ratio will matter for how quickly EQB can rebuild its earnings profile.

    However, investors should also be aware that rising credit losses in specific uninsured mortgage pockets could...

    Read the full narrative on EQB (it's free!)

    EQB's narrative projects CA$1.6 billion revenue and CA$455.1 million earnings by 2028. This requires 11.4% yearly revenue growth and roughly a CA$113.8 million earnings increase from CA$341.3 million today.

    Uncover how EQB's forecasts yield a CA$102.40 fair value, in line with its current price.

    Exploring Other Perspectives

    TSX:EQB 1-Year Stock Price Chart
    TSX:EQB 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community span a wide range, from about CA$102 to CA$187 per share, underlining how far apart individual views can be. You should weigh these against EQB’s current pressure on profits and credit quality, and use the contrast to explore how different scenarios for earnings recovery could affect your own expectations.

    Explore 2 other fair value estimates on EQB - why the stock might be worth as much as 80% more than the current price!

    Build Your Own EQB Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your EQB research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
    • Our free EQB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EQB's overall financial health at a glance.

    Curious About Other Options?

    Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.