BANK OF NEW YORK MELLON CORP (BK) Stock Fundamental Analysis
USA - NYSE:BK - US0640581007 - Common Stock
111.25 USD
+0.29 (+0.26%)
111.41 USD
+0.16 (+0.14%)
Taking everything into account, BK scores 4 out of 10 in our fundamental rating. BK was compared to 237 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. BK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BK had positive earnings in the past year.
BK had a positive operating cash flow in the past year.
BK had positive earnings in each of the past 5 years.
Each year in the past 5 years BK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.98%, BK is doing worse than 65.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.88%, BK is in the better half of the industry, outperforming 62.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.88% | ||
| ROIC | N/A |
ROA(3y)0.79%
ROA(5y)0.78%
ROE(3y)7.92%
ROE(5y)7.9%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 24.75%, BK is in the better half of the industry, outperforming 63.71% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 24.75% | ||
| 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
2. Health
2.1 Basic Checks
BK has less shares outstanding than it did 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.
2.2 Solvency
The Debt to FCF ratio of BK is 21.67, which is on the high side as it means it would take BK, 21.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 21.67, BK perfoms like the industry average, outperforming 49.79% of the companies in the same industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that BK has dependencies on debt financing.
The Debt to Equity ratio of BK (1.17) is worse than 60.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 21.67 | ||
| 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
BK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.68%, which is quite impressive.
The Earnings Per Share has been growing by 8.43% on average over the past years. This is quite good.
Looking at the last year, BK shows a quite strong growth in Revenue. The Revenue has grown by 9.21% in the last year.
BK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
EPS 1Y (TTM)27.68%
EPS 3Y13.05%
EPS 5Y8.43%
EPS Q2Q%25.66%
Revenue 1Y (TTM)9.21%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%9.32%
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 13.22% yearly.
Based on estimates for the next years, BK will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y25.6%
EPS Next 2Y17.66%
EPS Next 3Y15.77%
EPS Next 5Y13.22%
Revenue Next Year8.53%
Revenue Next 2Y6.17%
Revenue Next 3Y5.45%
Revenue Next 5Y4.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.56 indicates a correct valuation of BK.
BK's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.35, BK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.30, the valuation of BK can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as BK.
When comparing the Price/Forward Earnings ratio of BK to the average of the S&P500 Index (33.72), we can say BK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 13.3 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as BK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.6 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as BK's earnings are expected to grow with 15.77% in the coming years.
PEG (NY)0.61
PEG (5Y)1.85
EPS Next 2Y17.66%
EPS Next 3Y15.77%
5. Dividend
5.1 Amount
BK has a Yearly Dividend Yield of 1.96%.
Compared to an average industry Dividend Yield of 8.46, BK has a dividend in line with its industry peers.
BK's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of BK is nicely growing with an annual growth rate of 8.55%!
BK has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
BK pays out 33.28% of its income as dividend. This is a sustainable payout ratio.
BK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.28%
EPS Next 2Y17.66%
EPS Next 3Y15.77%
111.25
+0.29 (+0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.22%
Inst Owner Change-0.33%
Ins Owners0.19%
Ins Owner Change-0.1%
Market Cap77.58B
Revenue(TTM)19.75B
Net Income(TTM)4.78B
Analysts77.69
Price Target120.7 (8.49%)
Short Float %1.25%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend2.09
Dividend Growth(5Y)8.55%
DP33.28%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.44%
Min EPS beat(2)1.58%
Max EPS beat(2)7.3%
EPS beat(4)4
Avg EPS beat(4)4.93%
Min EPS beat(4)1.58%
Max EPS beat(4)7.3%
EPS beat(8)8
Avg EPS beat(8)5.09%
EPS beat(12)9
Avg EPS beat(12)0.6%
EPS beat(16)12
Avg EPS beat(16)0.91%
Revenue beat(2)1
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-3.3%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)1%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)2
Avg Revenue beat(12)-1.75%
Revenue beat(16)2
Avg Revenue beat(16)-1.8%
PT rev (1m)10.99%
PT rev (3m)19.94%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)3.39%
EPS NY rev (3m)7.88%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 13.3 | ||
| P/S | 4.02 | ||
| P/FCF | 32.6 | ||
| P/OCF | 20.17 | ||
| P/B | 1.77 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY6.43%
EPS(NY)8.36
Fwd EY7.52%
FCF(TTM)3.41
FCFY3.07%
OCF(TTM)5.52
OCFY4.96%
SpS27.7
BVpS63.02
TBVpS30.97
PEG (NY)0.61
PEG (5Y)1.85
Graham Number100.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 24.75% | ||
| GM | N/A | ||
| FCFM | 12.32% |
ROA(3y)0.79%
ROA(5y)0.78%
ROE(3y)7.92%
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 21.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 83.78% | ||
| Cap/Sales | 7.6% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 49.79% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)77.85%
Cap/Depr(5y)74.72%
Cap/Sales(3y)7.64%
Cap/Sales(5y)7.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.68%
EPS 3Y13.05%
EPS 5Y8.43%
EPS Q2Q%25.66%
EPS Next Y25.6%
EPS Next 2Y17.66%
EPS Next 3Y15.77%
EPS Next 5Y13.22%
Revenue 1Y (TTM)9.21%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%9.32%
Revenue Next Year8.53%
Revenue Next 2Y6.17%
Revenue Next 3Y5.45%
Revenue Next 5Y4.28%
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-72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.88%
OCF growth 3Y-37.68%
OCF growth 5Y48.23%
BANK OF NEW YORK MELLON CORP / BK FAQ
Can you provide the ChartMill fundamental rating for BANK OF NEW YORK MELLON CORP?
ChartMill assigns a fundamental rating of 4 / 10 to BK.
Can you provide the valuation status for BANK OF NEW YORK MELLON CORP?
ChartMill assigns a valuation rating of 4 / 10 to BANK OF NEW YORK MELLON CORP (BK). This can be considered as Fairly Valued.
How profitable is BANK OF NEW YORK MELLON CORP (BK) stock?
BANK OF NEW YORK MELLON CORP (BK) has a profitability rating of 3 / 10.
What is the valuation of BANK OF NEW YORK MELLON CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BANK OF NEW YORK MELLON CORP (BK) is 15.56 and the Price/Book (PB) ratio is 1.77.
How sustainable is the dividend of BANK OF NEW YORK MELLON CORP (BK) stock?
The dividend rating of BANK OF NEW YORK MELLON CORP (BK) is 7 / 10 and the dividend payout ratio is 33.28%.