BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
TSX:BNS - CA0641491075 - Common Stock
87.86 CAD
+0.01 (+0.01%)
We assign a fundamental rating of 3 out of 10 to BNS. BNS was compared to 27 industry peers in the Banks industry. BNS may be in some trouble as it scores bad on both profitability and health. BNS is valied quite expensively at the moment, while it does show a decent growth rate.
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 has a Return On Assets of 0.47%. This is amonst the worse of the industry: BNS underperforms 88.89% of its industry peers.
With a Return On Equity value of 7.97%, BNS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 7.97% | ||
| 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
BNS's Profit Margin of 18.31% is on the low side compared to the rest of the industry. BNS is outperformed by 88.89% of its industry peers.
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) | 18.31% | ||
| 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.
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
BNS has a debt to FCF ratio of 12.15. This is a negative value and a sign of low solvency as BNS would need 12.15 years to pay back of all of its debts.
BNS has a Debt to FCF ratio of 12.15. This is in the better half of the industry: BNS outperforms 62.96% of its industry peers.
BNS has a Debt/Equity ratio of 2.66. This is a high value indicating a heavy dependency on external financing.
BNS has a Debt to Equity ratio of 2.66. This is in the lower half of the industry: BNS underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.54%
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 nice 9.25% 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.
BNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.12%.
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)9.25%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%15.34%
Revenue 1Y (TTM)9.12%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%13.41%
3.2 Future
The Earnings Per Share is expected to grow by 10.46% on average over the next years. This is quite good.
Based on estimates for the next years, BNS will show a small growth in Revenue. The Revenue will grow by 3.52% on average per year.
EPS Next Y5.73%
EPS Next 2Y9.68%
EPS Next 3Y10.46%
EPS Next 5YN/A
Revenue Next Year9.67%
Revenue Next 2Y6.45%
Revenue Next 3Y5.59%
Revenue Next 5Y3.52%
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.
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 correctly with a Price/Earnings ratio of 13.05.
81.48% of the companies in the same industry are cheaper than BNS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BNS to the average of the S&P500 Index (27.06), we can say BNS is valued rather cheaply.
A Price/Forward Earnings ratio of 11.29 indicates a reasonable valuation of BNS.
BNS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BNS is more expensive than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BNS to the average of the S&P500 Index (22.69), we can say BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 11.29 |
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 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BNS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.28
PEG (5Y)N/A
EPS Next 2Y9.68%
EPS Next 3Y10.46%
5. Dividend
5.1 Amount
BNS has a Yearly Dividend Yield of 5.01%, which is a nice return.
Compared to an average industry Dividend Yield of 3.59, BNS pays a better dividend. On top of this BNS pays more dividend than 92.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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
87.33% of the earnings are spent on dividend by BNS. This is not a sustainable payout ratio.
BNS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP87.33%
EPS Next 2Y9.68%
EPS Next 3Y10.46%
TSX:BNS (9/5/2025, 7:00:00 PM)
87.86
+0.01 (+0.01%)
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 Cap109.24B
Analysts66.67
Price Target89.52 (1.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
Yearly Dividend4.61
Dividend Growth(5Y)4.87%
DP87.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.15%
Min EPS beat(2)-3.49%
Max EPS beat(2)7.79%
EPS beat(4)2
Avg EPS beat(4)1.76%
Min EPS beat(4)-3.49%
Max EPS beat(4)7.79%
EPS beat(8)4
Avg EPS beat(8)-1.73%
EPS beat(12)5
Avg EPS beat(12)-2.32%
EPS beat(16)8
Avg EPS beat(16)-0.37%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-1.73%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)0.23%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)4
Avg Revenue beat(16)-1.28%
PT rev (1m)12.83%
PT rev (3m)14.48%
EPS NQ rev (1m)3.16%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)-2.96%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 11.29 | ||
| P/S | 3 | ||
| P/FCF | 5.91 | ||
| P/OCF | 5.81 | ||
| P/B | 1.3 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.73
EY7.66%
EPS(NY)7.78
Fwd EY8.86%
FCF(TTM)14.86
FCFY16.91%
OCF(TTM)15.11
OCFY17.2%
SpS29.33
BVpS67.4
TBVpS54.48
PEG (NY)2.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 7.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 18.31% | ||
| GM | N/A | ||
| FCFM | 50.65% |
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 Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 12.16 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 18.68% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 276.58% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC13.54%
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)9.25%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%15.34%
EPS Next Y5.73%
EPS Next 2Y9.68%
EPS Next 3Y10.46%
EPS Next 5YN/A
Revenue 1Y (TTM)9.12%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%13.41%
Revenue Next Year9.67%
Revenue Next 2Y6.45%
Revenue Next 3Y5.59%
Revenue Next 5Y3.52%
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-23.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.66%
OCF growth 3YN/A
OCF growth 5YN/A