BANK OF NEW YORK MELLON CORP (BK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BK - US0640581007 - Common Stock
118.9 USD
+0.03 (+0.03%)
118.7 USD
-0.2 (-0.17%)
We assign a fundamental rating of 3 out of 10 to BK. BK was compared to 237 industry peers in the Capital Markets industry. Both the profitability and financial health of BK have multiple concerns. BK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- BK had positive earnings in the past year.
- In the past year BK had a positive cash flow from operations.
- In the past 5 years BK has always been profitable.
- Of the past 5 years BK 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BK (0.00%) is worse than 77.64% of its industry peers.
- With a Return On Equity value of 0.00%, BK is not doing good in the industry: 72.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | 0% | ||
| ROIC | N/A |
ROA(3y)0.97%
ROA(5y)0.86%
ROE(3y)10%
ROE(5y)8.8%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- BK's Profit Margin has improved in the last couple of years.
- BK does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y23.04%
PM growth 5Y4.1%
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.
- The number of shares outstanding for BK has been reduced compared to 5 years ago.
- Compared to 1 year ago, BK has a worse 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 53.59% 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.
- With a Debt to Equity ratio value of 1.17, BK perfoms like the industry average, outperforming 42.19% 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
- The Earnings Per Share has grown by an impressive 24.34% over the past year.
- The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 7.85% in the past year.
- The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)24.34%
EPS 3Y25.82%
EPS 5Y13.43%
EPS Q2Q%20.93%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y6.7%
Revenue growth 5Y4.9%
Sales Q2Q%6.85%
3.2 Future
- The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y14.73%
EPS Next 2Y13.63%
EPS Next 3Y13.29%
EPS Next 5Y11.09%
Revenue Next Year5.71%
Revenue Next 2Y5.05%
Revenue Next 3Y4.48%
Revenue Next 5Y3.42%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.83, the valuation of BK can be described as correct.
- BK's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, BK is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 13.80, BK is valued correctly.
- BK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BK is cheaper than 60.34% of the companies in the same industry.
- BK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 13.8 |
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 | 52.98 | ||
| 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 13.29% in the coming years.
PEG (NY)1.07
PEG (5Y)1.18
EPS Next 2Y13.63%
EPS Next 3Y13.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.76%, BK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.87, BK has a dividend in line with its industry peers.
- BK's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 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
- The dividend of BK is growing, but earnings are growing more, so the dividend growth is sustainable.
DPN/A
EPS Next 2Y13.63%
EPS Next 3Y13.29%
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 3 / 10 to BK.
What is the valuation status for BK stock?
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 2 / 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 15.83 and the Price/Book (PB) ratio is 1.89.
What is the financial health of BANK OF NEW YORK MELLON CORP (BK) stock?
The financial health rating of BANK OF NEW YORK MELLON CORP (BK) is 2 / 10.