BANK OF NEW YORK MELLON CORP (BK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BK - US0640581007 - Common Stock
116.87 USD
-0.6 (-0.51%)
116.87 USD
0 (0%)
Taking everything into account, BK scores 4 out of 10 in our fundamental rating. BK was compared to 235 industry peers in the Capital Markets industry. BK has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
With a Return On Assets value of 1.10%, BK is not doing good in the industry: 64.68% of the companies in the same industry are doing better.
BK has a better Return On Equity (11.42%) than 67.23% 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
BK has a Profit Margin of 25.36%. This is in the better half of the industry: BK outperforms 64.68% of its industry peers.
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
BK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BK has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BK is 32.92, which is on the high side as it means it would take BK, 32.92 years of fcf income to pay off all of its debts.
BK has a Debt to FCF ratio of 32.92. This is comparable to the rest of the industry: BK outperforms 51.06% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that BK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.17, BK is in line with its industry, outperforming 41.70% of the companies in the same industry.
| 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.
BK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.43% yearly.
The Revenue has grown by 9.21% in the past year. This is quite good.
Measured over the past years, BK shows a small growth in Revenue. The Revenue has been growing by 2.49% on average per year.
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
The Earnings Per Share is expected to grow by 13.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.28% on average over the next years.
EPS Next Y25.86%
EPS Next 2Y17.96%
EPS Next 3Y15.91%
EPS Next 5Y13.22%
Revenue Next Year8.58%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
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 16.35 indicates a correct valuation of BK.
The rest of the industry has a similar Price/Earnings ratio as BK.
The average S&P500 Price/Earnings ratio is at 26.77. BK is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.91, the valuation of BK can be described as correct.
BK's Price/Forward Earnings is on the same level as the industry average.
BK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.91 |
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 | 52.08 | ||
| 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 15.91% in the coming years.
PEG (NY)0.63
PEG (5Y)1.94
EPS Next 2Y17.96%
EPS Next 3Y15.91%
5. Dividend
5.1 Amount
BK has a Yearly Dividend Yield of 1.79%.
Compared to an average industry Dividend Yield of 6.65, BK is paying slightly less dividend.
BK's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
On average, the dividend of BK grows each year by 8.55%, which is quite nice.
BK has paid a dividend for at least 10 years, which is a reliable track record.
BK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.55%
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.
BK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.8%
EPS Next 2Y17.96%
EPS Next 3Y15.91%
116.87
-0.6 (-0.51%)
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 Change1.15%
Market Cap81.50B
Revenue(TTM)19.75B
Net Income(TTM)5.01B
Analysts77.69
Price Target121.69 (4.12%)
Short Float %1.52%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)0.79%
PT rev (3m)16.11%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)7.99%
EPS NY rev (1m)0.2%
EPS NY rev (3m)3.6%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)2.7%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.91 | ||
| P/S | 4.13 | ||
| P/FCF | 52.08 | ||
| P/OCF | 26.33 | ||
| P/B | 1.86 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.15
EY6.12%
EPS(NY)8.4
Fwd EY7.19%
FCF(TTM)2.24
FCFY1.92%
OCF(TTM)4.44
OCFY3.8%
SpS28.32
BVpS62.92
TBVpS34.81
PEG (NY)0.63
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 Y25.86%
EPS Next 2Y17.96%
EPS Next 3Y15.91%
EPS Next 5Y13.22%
Revenue 1Y (TTM)9.21%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%9.32%
Revenue Next Year8.58%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
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 16.35 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 6 / 10 and the dividend payout ratio is 32.8%.