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BANK OF NEW YORK MELLON CORP (BK) Stock Fundamental Analysis

NYSE:BK - New York Stock Exchange, Inc. - US0640581007 - Common Stock - Currency: USD

73.87  -2 (-2.64%)

Fundamental Rating

4

Taking everything into account, BK scores 4 out of 10 in our fundamental rating. BK was compared to 227 industry peers in the Capital Markets industry. BK has a bad profitability rating. Also its financial health evaluation is rather negative. BK has a correct valuation and a medium growth rate. Finally BK also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year BK was profitable.
BK had a positive operating cash flow in the past year.
BK had positive earnings in each of the past 5 years.
BK had a positive operating cash flow in each of the past 5 years.
BK Yearly Net Income VS EBIT VS OCF VS FCFBK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

BK's Return On Assets of 1.04% is on the low side compared to the rest of the industry. BK is outperformed by 66.96% of its industry peers.
BK's Return On Equity of 10.49% is in line compared to the rest of the industry. BK outperforms 57.27% of its industry peers.
Industry RankSector Rank
ROA 1.04%
ROE 10.49%
ROIC N/A
ROA(3y)0.79%
ROA(5y)0.78%
ROE(3y)7.93%
ROE(5y)7.9%
ROIC(3y)N/A
ROIC(5y)N/A
BK Yearly ROA, ROE, ROICBK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

BK has a Profit Margin of 23.29%. This is in the better half of the industry: BK outperforms 62.11% of its industry peers.
BK's Profit Margin has declined in the last couple of years.
BK does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 23.29%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1.48%
PM growth 5Y-2.06%
GM growth 3YN/A
GM growth 5YN/A
BK Yearly Profit, Operating, Gross MarginsBK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

2

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
The debt/assets ratio for BK has been reduced compared to a year ago.
BK Yearly Shares OutstandingBK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
BK Yearly Total Debt VS Total AssetsBK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B

2.2 Solvency

BK has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
BK has a Debt to Equity ratio (1.10) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
BK Yearly LT Debt VS Equity VS FCFBK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
BK Yearly Current Assets VS Current LiabilitesBK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 24.36% over the past year.
The Earnings Per Share has been growing by 8.43% on average over the past years. This is quite good.
BK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.61%.
BK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
EPS 1Y (TTM)24.36%
EPS 3Y13.05%
EPS 5Y8.43%
EPS Q2Q%22.48%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%6.31%

3.2 Future

The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y15.27%
EPS Next 2Y13.91%
EPS Next 3Y12.84%
EPS Next 5Y10.91%
Revenue Next Year4.95%
Revenue Next 2Y3.91%
Revenue Next 3Y3.49%
Revenue Next 5Y3.36%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
BK Yearly Revenue VS EstimatesBK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
BK Yearly EPS VS EstimatesBK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.67, the valuation of BK can be described as reasonable.
BK's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BK to the average of the S&P500 Index (28.29), we can say BK is valued rather cheaply.
The Price/Forward Earnings ratio is 9.43, which indicates a very decent valuation of BK.
Based on the Price/Forward Earnings ratio, BK is valued a bit cheaper than the industry average as 66.96% of the companies are valued more expensively.
BK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.67
Fwd PE 9.43
BK Price Earnings VS Forward Price EarningsBK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
BK Per share dataBK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

BK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BK's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)1.38
EPS Next 2Y13.91%
EPS Next 3Y12.84%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.46%, BK has a reasonable but not impressive dividend return.
BK's Dividend Yield is comparable with the industry average which is at 8.41.
BK's Dividend Yield is comparable with the S&P500 average which is at 2.51.
Industry RankSector Rank
Dividend Yield 2.46%

5.2 History

The dividend of BK is nicely growing with an annual growth rate of 8.55%!
BK has paid a dividend for at least 10 years, which is a reliable track record.
BK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.55%
Div Incr Years14
Div Non Decr Years14
BK Yearly Dividends per shareBK Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

35.56% of the earnings are spent on dividend by BK. This is a low number and sustainable payout ratio.
BK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.56%
EPS Next 2Y13.91%
EPS Next 3Y12.84%
BK Yearly Income VS Free CF VS DividendBK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B
BK Dividend Payout.BK Dividend Payout, showing the Payout Ratio.BK Dividend Payout.PayoutRetained Earnings

BANK OF NEW YORK MELLON CORP

NYSE:BK (4/21/2025, 2:39:04 PM)

73.87

-2 (-2.64%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)04-11 2025-04-11/bmo
Earnings (Next)07-10 2025-07-10/amc
Inst Owners88.45%
Inst Owner Change0.4%
Ins Owners0.25%
Ins Owner Change1.01%
Market Cap52.85B
Analysts79.2
Price Target94.53 (27.97%)
Short Float %1.5%
Short Ratio2.45
Dividend
Industry RankSector Rank
Dividend Yield 2.46%
Yearly Dividend2.09
Dividend Growth(5Y)8.55%
DP35.56%
Div Incr Years14
Div Non Decr Years14
Ex-Date04-21 2025-04-21 (0.47)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.43%
Min EPS beat(2)4.15%
Max EPS beat(2)6.71%
EPS beat(4)4
Avg EPS beat(4)4.65%
Min EPS beat(4)2.55%
Max EPS beat(4)6.71%
EPS beat(8)7
Avg EPS beat(8)4%
EPS beat(12)9
Avg EPS beat(12)0.46%
EPS beat(16)12
Avg EPS beat(16)1.46%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)1%
Revenue beat(8)1
Avg Revenue beat(8)-1.43%
Revenue beat(12)1
Avg Revenue beat(12)-2.27%
Revenue beat(16)1
Avg Revenue beat(16)-1.99%
PT rev (1m)0.07%
PT rev (3m)9.49%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 11.67
Fwd PE 9.43
P/S 2.84
P/FCF N/A
P/OCF 76.93
P/B 1.28
P/tB 2.75
EV/EBITDA N/A
EPS(TTM)6.33
EY8.57%
EPS(NY)7.84
Fwd EY10.61%
FCF(TTM)-1.09
FCFYN/A
OCF(TTM)0.96
OCFY1.3%
SpS26.02
BVpS57.75
TBVpS26.83
PEG (NY)0.76
PEG (5Y)1.38
Profitability
Industry RankSector Rank
ROA 1.04%
ROE 10.49%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 23.29%
GM N/A
FCFM N/A
ROA(3y)0.79%
ROA(5y)0.78%
ROE(3y)7.93%
ROE(5y)7.9%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1.48%
PM growth 5Y-2.06%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 81.48%
Cap/Sales 7.89%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)77.85%
Cap/Depr(5y)74.72%
Cap/Sales(3y)7.69%
Cap/Sales(5y)7.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.36%
EPS 3Y13.05%
EPS 5Y8.43%
EPS Q2Q%22.48%
EPS Next Y15.27%
EPS Next 2Y13.91%
EPS Next 3Y12.84%
EPS Next 5Y10.91%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%6.31%
Revenue Next Year4.95%
Revenue Next 2Y3.91%
Revenue Next 3Y3.49%
Revenue Next 5Y3.36%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-8.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-116.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.38%
OCF growth 3Y-37.68%
OCF growth 5Y48.23%