BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
TSX:BNS - Toronto Stock Exchange - CA0641491075 - Common Stock - Currency: CAD
BNS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 29 industry peers in the Banks industry. BNS has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, BNS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BNS was profitable.
BNS had a positive operating cash flow in the past year.
Each year in the past 5 years BNS has been profitable.
BNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BNS's Return On Assets of 0.43% is on the low side compared to the rest of the industry. BNS is outperformed by 89.66% of its industry peers.
With a Return On Equity value of 7.23%, BNS is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 7.23% | ||
| ROIC | N/A |
ROA(3y)0.57%
ROA(5y)0.62%
ROE(3y)10.35%
ROE(5y)10.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 17.38%, BNS is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
BNS's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for BNS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 17.38% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.37%
PM growth 5Y-3.93%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BNS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, BNS has more shares outstanding
Compared to 5 years ago, BNS has more shares outstanding
BNS has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BNS is 10.52, which is on the high side as it means it would take BNS, 10.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.52, BNS is doing worse than 75.86% of the companies in the same industry.
BNS has a Debt/Equity ratio of 2.60. This is a high value indicating a heavy dependency on external financing.
BNS has a worse Debt to Equity ratio (2.60) than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 10.52 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.74%
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 been growing slightly by 3.51% over the past year.
Measured over the past years, BNS shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.98% on average per year.
Looking at the last year, BNS shows a small growth in Revenue. The Revenue has grown by 6.52% in the last year.
BNS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.64% yearly.
EPS 1Y (TTM)3.51%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%-3.8%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%8.78%
3.2 Future
Based on estimates for the next years, BNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
The Revenue is expected to grow by 3.37% on average over the next years.
EPS Next Y8.96%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue Next Year8.78%
Revenue Next 2Y6.43%
Revenue Next 3Y5.07%
Revenue Next 5Y3.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.68, which indicates a very decent valuation of BNS.
BNS's Price/Earnings ratio is a bit more expensive when compared to the industry. BNS is more expensive than 75.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.48. BNS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.49, which indicates a very decent valuation of BNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BNS indicates a slightly more expensive valuation: BNS is more expensive than 79.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BNS to the average of the S&P500 Index (36.52), we can say BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BNS indicates a slightly more expensive valuation: BNS is more expensive than 65.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.45 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BNS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y11.03%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.84%, BNS is a good candidate for dividend investing.
BNS's Dividend Yield is a higher than the industry average which is at 4.64.
BNS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
5.2 History
The dividend of BNS has a limited annual growth rate of 4.87%.
BNS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
93.68% of the earnings are spent on dividend by BNS. This is not a sustainable payout ratio.
The dividend of BNS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP93.68%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
TSX:BNS (7/17/2025, 7:00:00 PM)
75.66
+0.31 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.31%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap94.07B
Analysts66.32
Price Target78.83 (4.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend4.61
Dividend Growth(5Y)4.87%
DP93.68%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.98%
Min EPS beat(2)-3.49%
Max EPS beat(2)5.44%
EPS beat(4)1
Avg EPS beat(4)-0.32%
Min EPS beat(4)-3.49%
Max EPS beat(4)5.44%
EPS beat(8)3
Avg EPS beat(8)-2.87%
EPS beat(12)4
Avg EPS beat(12)-3.1%
EPS beat(16)8
Avg EPS beat(16)-0.56%
Revenue beat(2)1
Avg Revenue beat(2)2.24%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.64%
Revenue beat(16)3
Avg Revenue beat(16)-1.38%
PT rev (1m)0.81%
PT rev (3m)-0.41%
EPS NQ rev (1m)-4.07%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 9.49 | ||
| P/S | 2.66 | ||
| P/FCF | 4.45 | ||
| P/OCF | 4.37 | ||
| P/B | 1.11 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.48
EY8.56%
EPS(NY)7.98
Fwd EY10.54%
FCF(TTM)17
FCFY22.47%
OCF(TTM)17.31
OCFY22.87%
SpS28.43
BVpS68.3
TBVpS55.36
PEG (NY)1.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 7.23% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 17.38% | ||
| GM | N/A | ||
| FCFM | 59.8% |
ROA(3y)0.57%
ROA(5y)0.62%
ROE(3y)10.35%
ROE(5y)10.79%
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 3Y-10.37%
PM growth 5Y-3.93%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 10.52 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 22.2% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 344.05% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC13.74%
ROIC/WACCN/A
Cap/Depr(3y)29.79%
Cap/Depr(5y)33.96%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.72%
Profit Quality(3y)276.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.51%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%-3.8%
EPS Next Y8.96%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%8.78%
Revenue Next Year8.78%
Revenue Next 2Y6.43%
Revenue Next 3Y5.07%
Revenue Next 5Y3.37%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y332.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y349.14%
OCF growth 3YN/A
OCF growth 5YN/A