BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BNS - CA0641491075 - Common Stock
102.18 CAD
0 (0%)
Taking everything into account, BNS scores 3 out of 10 in our fundamental rating. BNS was compared to 24 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. Finally 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.
- 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
- The Return On Assets of BNS (0.50%) is worse than 79.17% of its industry peers.
- BNS has a Return On Equity of 8.36%. This is in the lower half of the industry: BNS underperforms 66.67% of its industry peers.
| 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
- BNS has a Profit Margin of 19.24%. This is amonst the worse of the industry: BNS underperforms 83.33% 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) | 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.
- Compared to 1 year ago, BNS has less shares outstanding
- 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
- BNS has a debt to FCF ratio of 46.43. This is a negative value and a sign of low solvency as BNS would need 46.43 years to pay back of all of its debts.
- BNS has a Debt to FCF ratio of 46.43. This is in the lower half of the industry: BNS underperforms 62.50% of its industry peers.
- A Debt/Equity ratio of 2.68 is on the high side and indicates that BNS has dependencies on debt financing.
- BNS's Debt to Equity ratio of 2.68 is on the low side compared to the rest of the industry. BNS is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 46.43 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.64%
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 9.58% over the past year.
- The Earnings Per Share has been growing slightly by 5.75% on average over the past years.
- 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 small growth in Earnings Per Share. The EPS will grow by 7.07% on average per year.
- Based on estimates for the next years, BNS will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.
EPS Next Y14.63%
EPS Next 2Y13.4%
EPS Next 3Y12.97%
EPS Next 5Y7.07%
Revenue Next Year5.18%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
Revenue Next 5Y3.9%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BNS is valuated correctly with a Price/Earnings ratio of 14.41.
- Compared to the rest of the industry, the Price/Earnings ratio of BNS indicates a slightly more expensive valuation: BNS is more expensive than 70.83% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BNS to the average of the S&P500 Index (27.38), we can say BNS is valued slightly cheaper.
- A Price/Forward Earnings ratio of 12.57 indicates a correct valuation of BNS.
- 70.83% of the companies in the same industry are cheaper than BNS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. BNS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, BNS is valued a bit more expensive than the industry average as 70.83% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as BNS's earnings are expected to grow with 12.97% in the coming years.
PEG (NY)0.98
PEG (5Y)2.5
EPS Next 2Y13.4%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.31%, BNS is a good candidate for dividend investing.
- BNS's Dividend Yield is rather good when compared to the industry average which is at 3.33. BNS pays more dividend than 87.50% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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
- 80.91% 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.
DP80.91%
EPS Next 2Y13.4%
EPS Next 3Y12.97%
TSX:BNS (1/16/2026, 7:00:00 PM)
102.18
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)12-02 2025-12-02/bmo
Earnings (Next)02-23 2026-02-23
Inst Owners51.39%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap126.33B
Revenue(TTM)37.74B
Net Income(TTM)7.26B
Analysts67.37
Price Target103.89 (1.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend4.74
Dividend Growth(5Y)4.75%
DP80.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-06 2026-01-06 (1.1)
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)1.28%
PT rev (3m)15.75%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)1.04%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 12.57 | ||
| P/S | 3.35 | ||
| P/FCF | 24.97 | ||
| P/OCF | 23.36 | ||
| P/B | 1.45 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.09
EY6.94%
EPS(NY)8.13
Fwd EY7.95%
FCF(TTM)4.09
FCFY4.01%
OCF(TTM)4.37
OCFY4.28%
SpS30.53
BVpS70.26
TBVpS57.18
PEG (NY)0.98
PEG (5Y)2.5
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
WACC11.64%
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 Y14.63%
EPS Next 2Y13.4%
EPS Next 3Y12.97%
EPS Next 5Y7.07%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.31%
Revenue growth 5Y3.79%
Sales Q2Q%14.98%
Revenue Next Year5.18%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
Revenue Next 5Y3.9%
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.
Can you provide the valuation status for BANK OF NOVA SCOTIA?
ChartMill assigns a valuation rating of 3 / 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.
What are the PE and PB ratios of BANK OF NOVA SCOTIA (BNS.CA) stock?
The Price/Earnings (PE) ratio for BANK OF NOVA SCOTIA (BNS.CA) is 14.41 and the Price/Book (PB) ratio is 1.45.
Can you provide the dividend sustainability for BNS stock?
The dividend rating of BANK OF NOVA SCOTIA (BNS.CA) is 7 / 10 and the dividend payout ratio is 80.91%.