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. 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.
BNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BNS (0.43%) is worse than 89.66% of its industry peers.
BNS has a worse Return On Equity (7.23%) than 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
The Profit Margin of BNS (17.38%) is worse than 89.66% of its industry peers.
In the last couple of years the Profit Margin of BNS has declined.
BNS 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) | 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.
The number of shares outstanding for BNS has been increased compared to 1 year ago.
Compared to 5 years ago, BNS has more shares outstanding
Compared to 1 year ago, BNS has a worse debt to assets ratio.
2.2 Solvency
BNS has a debt to FCF ratio of 10.52. This is a negative value and a sign of low solvency as BNS would need 10.52 years to pay back of 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
WACC13.31%
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.
BNS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.98% yearly.
Looking at the last year, BNS shows a small growth in Revenue. The Revenue has grown by 6.52% in the last year.
The Revenue has been growing slightly by 1.64% on average over the past years.
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
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.
Based on estimates for the next years, BNS will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y8.96%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y6.32%
Revenue Next 3Y5.55%
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
BNS is valuated reasonably with a Price/Earnings ratio of 11.89.
75.86% of the companies in the same industry are cheaper than BNS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.48, BNS is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.66, the valuation of BNS can be described as very reasonable.
79.31% of the companies in the same industry are cheaper than BNS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 9.66 |
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 | 4.53 | ||
| 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)1.33
PEG (5Y)N/A
EPS Next 2Y11.03%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
BNS has a Yearly Dividend Yield of 5.74%, which is a nice return.
Compared to an average industry Dividend Yield of 4.61, BNS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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 (8/8/2025, 7:00:00 PM)
77.03
+0.33 (+0.43%)
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 Cap95.77B
Analysts66.32
Price Target79.63 (3.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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)1.02%
PT rev (3m)2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 9.66 | ||
| P/S | 2.71 | ||
| P/FCF | 4.53 | ||
| P/OCF | 4.45 | ||
| P/B | 1.13 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.48
EY8.41%
EPS(NY)7.98
Fwd EY10.36%
FCF(TTM)17
FCFY22.07%
OCF(TTM)17.31
OCFY22.47%
SpS28.43
BVpS68.3
TBVpS55.36
PEG (NY)1.33
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
WACC13.31%
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 Year9.59%
Revenue Next 2Y6.32%
Revenue Next 3Y5.55%
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