BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BNS - CA0641491075 - Common Stock
101.31 CAD
+0.27 (+0.27%)
Overall BNS gets a fundamental rating of 3 out of 10. We evaluated BNS against 23 industry peers in the Banks industry. Both the profitability and financial health of BNS have multiple concerns. BNS is quite expensive at the moment. It does show a decent growth rate. BNS also has an excellent dividend rating.
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.
In the past 5 years BNS has always been profitable.
BNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.50%, BNS is doing worse than 78.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.36%, BNS is doing worse than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.36% | ||
| ROIC | N/A |
ROA(3y)0.5%
ROA(5y)0.6%
ROE(3y)8.74%
ROE(5y)10.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 19.24%, BNS is doing worse than 82.61% of the companies in the same industry.
In the last couple of years the Profit Margin of BNS has declined.
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) | 19.24% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-14.46%
PM growth 5Y-1.74%
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 reduced compared to 1 year ago.
The number of shares outstanding for BNS has been increased compared to 5 years ago.
The debt/assets ratio for BNS has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BNS is 46.43, which is on the high side as it means it would take BNS, 46.43 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 46.43, BNS is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.68 is on the high side and indicates that BNS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.68, BNS is doing worse than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 46.43 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.58%, which is quite good.
BNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.75% yearly.
The Revenue has grown by 12.09% in the past year. This is quite good.
The Revenue has been growing slightly by 3.79% on average over the past years.
EPS 1Y (TTM)9.58%
EPS 3Y-5.83%
EPS 5Y5.75%
EPS Q2Q%22.93%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.31%
Revenue growth 5Y3.79%
Sales Q2Q%14.98%
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 13.07% on average per year.
Based on estimates for the next years, BNS will show a small growth in Revenue. The Revenue will grow by 2.97% on average per year.
EPS Next Y13.45%
EPS Next 2Y13.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.71%
Revenue Next 2Y3.81%
Revenue Next 3Y2.87%
Revenue Next 5Y2.97%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.29 indicates a correct valuation of BNS.
Based on the Price/Earnings ratio, BNS is valued a bit more expensive than 65.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. BNS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.59, BNS is valued correctly.
69.57% of the companies in the same industry are cheaper than BNS, based on the Price/Forward Earnings ratio.
BNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.59 |
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 73.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.75 | ||
| 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.
BNS's earnings are expected to grow with 13.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)2.48
EPS Next 2Y13.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, BNS is a good candidate for dividend investing.
BNS's Dividend Yield is rather good when compared to the industry average which is at 3.01. BNS pays more dividend than 91.30% of the companies in the same industry.
BNS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
The dividend of BNS has a limited annual growth rate of 4.75%.
BNS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.75%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BNS pays out 80.91% of its income as dividend. This is not a sustainable payout ratio.
BNS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.91%
EPS Next 2Y13.07%
EPS Next 3YN/A
TSX:BNS (12/24/2025, 7:00:00 PM)
101.31
+0.27 (+0.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.47%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap125.25B
Revenue(TTM)37.74B
Net Income(TTM)7.26B
Analysts67.37
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend4.74
Dividend Growth(5Y)4.75%
DP80.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.74%
Min EPS beat(2)3.68%
Max EPS beat(2)7.79%
EPS beat(4)3
Avg EPS beat(4)3.36%
Min EPS beat(4)-3.49%
Max EPS beat(4)7.79%
EPS beat(8)5
Avg EPS beat(8)1.77%
EPS beat(12)5
Avg EPS beat(12)-2.19%
EPS beat(16)8
Avg EPS beat(16)-0.71%
Revenue beat(2)2
Avg Revenue beat(2)2.09%
Min Revenue beat(2)1.03%
Max Revenue beat(2)3.15%
Revenue beat(4)3
Avg Revenue beat(4)2.16%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)4.76%
Revenue beat(8)4
Avg Revenue beat(8)0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)5
Avg Revenue beat(16)-0.9%
PT rev (1m)13.49%
PT rev (3m)14.29%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)0.73%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.59 | ||
| P/S | 3.32 | ||
| P/FCF | 24.75 | ||
| P/OCF | 23.16 | ||
| P/B | 1.44 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.09
EY7%
EPS(NY)8.04
Fwd EY7.94%
FCF(TTM)4.09
FCFY4.04%
OCF(TTM)4.37
OCFY4.32%
SpS30.53
BVpS70.26
TBVpS57.18
PEG (NY)1.06
PEG (5Y)2.48
Graham Number105.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.36% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 19.24% | ||
| GM | N/A | ||
| FCFM | 13.41% |
ROA(3y)0.5%
ROA(5y)0.6%
ROE(3y)8.74%
ROE(5y)10.53%
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 3Y-14.46%
PM growth 5Y-1.74%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 46.43 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.63% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 69.69% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC11.62%
ROIC/WACCN/A
Cap/Depr(3y)24.57%
Cap/Depr(5y)28.32%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.41%
Profit Quality(3y)243.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.58%
EPS 3Y-5.83%
EPS 5Y5.75%
EPS Q2Q%22.93%
EPS Next Y13.45%
EPS Next 2Y13.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.31%
Revenue growth 5Y3.79%
Sales Q2Q%14.98%
Revenue Next Year3.71%
Revenue Next 2Y3.81%
Revenue Next 3Y2.87%
Revenue Next 5Y2.97%
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 1Y-66.63%
FCF growth 3Y-32.39%
FCF growth 5Y-38.15%
OCF growth 1Y-65.45%
OCF growth 3Y-31.66%
OCF growth 5Y-37.49%
BANK OF NOVA SCOTIA / BNS.CA FAQ
What is the fundamental rating for BNS stock?
ChartMill assigns a fundamental rating of 3 / 10 to BNS.CA.
What is the valuation status for BNS stock?
ChartMill assigns a valuation rating of 2 / 10 to BANK OF NOVA SCOTIA (BNS.CA). This can be considered as Overvalued.
How profitable is BANK OF NOVA SCOTIA (BNS.CA) stock?
BANK OF NOVA SCOTIA (BNS.CA) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for BNS stock?
The Price/Earnings (PE) ratio for BANK OF NOVA SCOTIA (BNS.CA) is 14.29 and the Price/Book (PB) ratio is 1.44.
Is the dividend of BANK OF NOVA SCOTIA sustainable?
The dividend rating of BANK OF NOVA SCOTIA (BNS.CA) is 7 / 10 and the dividend payout ratio is 80.91%.