BANK OF NEW YORK MELLON CORP (BK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BK - US0640581007 - Common Stock
117.03 USD
-1.65 (-1.39%)
117.03 USD
0 (0%)
BK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past 5 years BK always reported a positive cash flow from operatings.
1.2 Ratios
BK has a worse Return On Assets (1.10%) than 64.56% of its industry peers.
BK has a better Return On Equity (11.42%) than 66.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 11.42% | ||
| 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
With a decent Profit Margin value of 25.36%, BK is doing good in the industry, outperforming 62.87% 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) | 25.36% | ||
| 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
Compared to 1 year ago, BK has less shares outstanding
Compared to 5 years ago, BK has less shares outstanding
Compared to 1 year ago, BK has an improved debt to assets ratio.
2.2 Solvency
BK has a debt to FCF ratio of 32.92. This is a negative value and a sign of low solvency as BK would need 32.92 years to pay back of all of its debts.
The Debt to FCF ratio of BK (32.92) is comparable to the rest of the industry.
BK has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
BK's Debt to Equity ratio of 1.17 is in line compared to the rest of the industry. BK outperforms 41.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 32.92 | ||
| 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.
Measured over the past years, BK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.43% on average per year.
Looking at the last year, BK shows a quite strong growth in Revenue. The Revenue has grown by 9.21% in the last year.
The Revenue has been growing slightly by 2.49% on average over the past years.
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
Based on estimates for the next years, BK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.22% on average per year.
The Revenue is expected to grow by 4.28% on average over the next years.
EPS Next Y25.77%
EPS Next 2Y17.71%
EPS Next 3Y15.79%
EPS Next 5Y13.22%
Revenue Next Year8.55%
Revenue Next 2Y6.21%
Revenue Next 3Y5.47%
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
With a Price/Earnings ratio of 16.37, BK is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BK is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.54, BK is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.98, which indicates a correct valuation of BK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BK is on the same level as its industry peers.
BK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
BK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.15 | ||
| 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.
BK's earnings are expected to grow with 15.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)1.94
EPS Next 2Y17.71%
EPS Next 3Y15.79%
5. Dividend
5.1 Amount
BK has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.26, BK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, BK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
32.80% of the earnings are spent on dividend by BK. This is a low number and sustainable payout ratio.
The dividend of BK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.8%
EPS Next 2Y17.71%
EPS Next 3Y15.79%
117.03
-1.65 (-1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.34%
Inst Owner Change0.26%
Ins Owners0.19%
Ins Owner Change-0.1%
Market Cap81.61B
Revenue(TTM)19.75B
Net Income(TTM)5.01B
Analysts77.69
Price Target120.67 (3.11%)
Short Float %1.36%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend2.09
Dividend Growth(5Y)8.55%
DP32.8%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.03%
Min EPS beat(2)4.76%
Max EPS beat(2)7.3%
EPS beat(4)4
Avg EPS beat(4)5.09%
Min EPS beat(4)1.58%
Max EPS beat(4)7.3%
EPS beat(8)8
Avg EPS beat(8)5.31%
EPS beat(12)10
Avg EPS beat(12)1.52%
EPS beat(16)12
Avg EPS beat(16)1.19%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)1%
Revenue beat(8)2
Avg Revenue beat(8)-0.96%
Revenue beat(12)2
Avg Revenue beat(12)-1.73%
Revenue beat(16)2
Avg Revenue beat(16)-1.8%
PT rev (1m)-0.03%
PT rev (3m)16.36%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)8.54%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.73%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.98 | ||
| P/S | 4.13 | ||
| P/FCF | 52.15 | ||
| P/OCF | 26.37 | ||
| P/B | 1.86 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY6.11%
EPS(NY)8.37
Fwd EY7.15%
FCF(TTM)2.24
FCFY1.92%
OCF(TTM)4.44
OCFY3.79%
SpS28.32
BVpS62.92
TBVpS34.81
PEG (NY)0.64
PEG (5Y)1.94
Graham Number100.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 11.42% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.36% | ||
| GM | N/A | ||
| FCFM | 7.92% |
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-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 32.92 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 88.54% | ||
| Cap/Sales | 7.75% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 31.24% | ||
| 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)7.64%
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 Y25.77%
EPS Next 2Y17.71%
EPS Next 3Y15.79%
EPS Next 5Y13.22%
Revenue 1Y (TTM)9.21%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%9.32%
Revenue Next Year8.55%
Revenue Next 2Y6.21%
Revenue Next 3Y5.47%
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-83.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.62%
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 16.37 and the Price/Book (PB) ratio is 1.86.
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 32.8%.