BANK OF NEW YORK MELLON CORP (BK)
US0640581007 - Common Stock
BK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. BK may be in some trouble as it scores bad on both profitability and health. BK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BK was profitable.
In the past year BK had a positive cash flow from operations.
Each year in the past 5 years BK has been profitable.
Each year in the past 5 years BK had a positive operating cash flow.
1.2 Ratios
BK's Return On Assets of 0.75% is on the low side compared to the rest of the industry. BK is outperformed by 70.67% of its industry peers.
The Return On Equity of BK (7.49%) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 7.49% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.79%
ROE(3y)7.19%
ROE(5y)7.86%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 17.40%, BK is in line with its industry, outperforming 47.60% of the companies in the same industry.
In the last couple of years the Profit Margin of BK has declined.
BK does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 17.4% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-7.1%
PM growth 5Y-6.94%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for BK has been reduced compared to 1 year ago.
Compared to 5 years ago, BK has less shares outstanding
Compared to 1 year ago, BK has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BK is 9.86, which is on the high side as it means it would take BK, 9.86 years of fcf income to pay off all of its debts.
BK's Debt to FCF ratio of 9.86 is in line compared to the rest of the industry. BK outperforms 50.48% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that BK has dependencies on debt financing.
BK has a Debt to Equity ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.50% over the past year.
BK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.31% yearly.
Looking at the last year, BK shows a small growth in Revenue. The Revenue has grown by 7.16% in the last year.
The Revenue has been growing slightly by 1.54% on average over the past years.
EPS 1Y (TTM)30.5%
EPS 3Y7.14%
EPS 5Y3.31%
EPS growth Q2Q106.45%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y3.83%
Revenue growth 5Y1.54%
Revenue growth Q2Q11.23%
3.2 Future
BK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
BK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y11.67%
EPS Next 2Y11.63%
EPS Next 3Y12.23%
EPS Next 5Y8.38%
Revenue Next Year1.39%
Revenue Next 2Y2%
Revenue Next 3Y2.85%
Revenue Next 5Y3.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.67, the valuation of BK can be described as very reasonable.
62.50% of the companies in the same industry are more expensive than BK, based on the Price/Earnings ratio.
BK is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.46, the valuation of BK can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BK indicates a somewhat cheap valuation: BK is cheaper than 65.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, BK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
BK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BK is cheaper than 74.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BK's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)1
PEG (5Y)3.52
EPS Next 2Y11.63%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BK has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.77, BK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, BK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
On average, the dividend of BK grows each year by 8.92%, which is quite nice.
BK has been paying a dividend for at least 10 years, so it has a reliable track record.
BK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.92%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
BK pays out 48.69% of its income as dividend. This is a bit on the high side, but may be sustainable.
BK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.69%
EPS Next 2Y11.63%
EPS Next 3Y12.23%
BANK OF NEW YORK MELLON CORP
NYSE:BK (4/23/2024, 7:04:00 PM)
Premarket: 57.4 -0.04 (-0.07%)57.44
+0.28 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1
PEG (5Y)3.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 7.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 17.4% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.5%
EPS 3Y7.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.16%
Revenue growth 3Y3.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y