BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
TSX:BNS - Toronto Stock Exchange - CA0641491075 - Common Stock - Currency: CAD
We assign a fundamental rating of 2 out of 10 to BNS. BNS was compared to 29 industry peers in the Banks industry. Both the profitability and financial health of BNS have multiple concerns. BNS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BNS had positive earnings in the past year.
BNS had a positive operating cash flow in the past year.
BNS had positive earnings in each of the past 5 years.
Of the past 5 years BNS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BNS (0.43%) is worse than 89.66% of its industry peers.
BNS's Return On Equity of 7.23% is on the low side compared to the rest of the industry. BNS is outperformed by 79.31% of its industry peers.
| 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
BNS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BNS has a worse debt to assets ratio.
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.
With a Debt to FCF ratio value of 10.52, BNS is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.60 is on the high side and indicates that BNS has dependencies on debt financing.
BNS has a Debt to Equity ratio of 2.60. This is in the lower half of the industry: BNS underperforms 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
WACC14.02%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.53%.
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.
BNS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.52%.
Measured over the past years, BNS shows a small growth in Revenue. The Revenue has been growing by 1.64% on average per year.
EPS 1Y (TTM)2.53%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%-7.68%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%4.27%
3.2 Future
BNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.36% yearly.
BNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.37% yearly.
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
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
Based on the Price/Earnings ratio of 11.60, the valuation of BNS can be described as reasonable.
Based on the Price/Earnings ratio, BNS is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.35, BNS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.33, the valuation of BNS can be described as reasonable.
Based on the Price/Forward Earnings ratio, BNS is valued a bit more expensive than the industry average as 79.31% of the companies are valued more cheaply.
BNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BNS is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.39 | ||
| 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)1.29
PEG (5Y)N/A
EPS Next 2Y11.03%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.95%, BNS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.02, BNS pays a better dividend. On top of this BNS pays more dividend than 93.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
5.2 History
The dividend of BNS has a limited annual growth rate of 4.87%.
BNS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BNS pays out 93.68% of its income as dividend. 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 (6/20/2025, 7:00:00 PM)
74.46
-0.04 (-0.05%)
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 Cap92.74B
Analysts66.32
Price Target78.2 (5.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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)-0.97%
Min EPS beat(2)-7.38%
Max EPS beat(2)5.44%
EPS beat(4)1
Avg EPS beat(4)-1.3%
Min EPS beat(4)-7.38%
Max EPS beat(4)5.44%
EPS beat(8)3
Avg EPS beat(8)-3.36%
EPS beat(12)4
Avg EPS beat(12)-3.42%
EPS beat(16)8
Avg EPS beat(16)-0.8%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)4.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)2
Avg Revenue beat(12)-1.98%
Revenue beat(16)3
Avg Revenue beat(16)-1.64%
PT rev (1m)0.88%
PT rev (3m)-3.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 9.33 | ||
| P/S | 2.62 | ||
| P/FCF | 4.39 | ||
| P/OCF | 4.31 | ||
| P/B | 1.09 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.42
EY8.62%
EPS(NY)7.98
Fwd EY10.71%
FCF(TTM)16.97
FCFY22.79%
OCF(TTM)17.28
OCFY23.2%
SpS28.37
BVpS68.18
TBVpS55.26
PEG (NY)1.29
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
WACC14.02%
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)2.53%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%-7.68%
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%4.27%
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