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BANK OF NOVA SCOTIA (BNS) Stock Fundamental Analysis

NYSE:BNS - New York Stock Exchange, Inc. - CA0641491075 - Common Stock - Currency: USD

52.19  +0.57 (+1.1%)

After market: 52.44 +0.25 (+0.48%)

Fundamental Rating

3

Taking everything into account, BNS scores 3 out of 10 in our fundamental rating. BNS was compared to 396 industry peers in the Banks industry. BNS may be in some trouble as it scores bad on both profitability and health. BNS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year BNS was profitable.
In the past year BNS had a positive cash flow from operations.
In the past 5 years BNS has always been profitable.
BNS had a positive operating cash flow in 4 of the past 5 years.
BNS Yearly Net Income VS EBIT VS OCF VS FCFBNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B

1.2 Ratios

With a Return On Assets value of 0.43%, BNS is not doing good in the industry: 78.54% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 7.36%, BNS is in line with its industry, outperforming 42.93% of the companies in the same industry.
Industry RankSector Rank
ROA 0.43%
ROE 7.36%
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
BNS Yearly ROA, ROE, ROICBNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

BNS's Profit Margin of 18.04% is on the low side compared to the rest of the industry. BNS is outperformed by 67.93% of its industry peers.
BNS's Profit Margin has declined in the last couple of years.
BNS does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 18.04%
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
BNS Yearly Profit, Operating, Gross MarginsBNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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2. Health

2.1 Basic Checks

BNS does not have a ROIC to compare to the WACC, probably because it is not profitable.
BNS has more shares outstanding than it did 1 year ago.
BNS has more shares outstanding than it did 5 years ago.
BNS has a worse debt/assets ratio than last year.
BNS Yearly Shares OutstandingBNS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
BNS Yearly Total Debt VS Total AssetsBNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T

2.2 Solvency

The Debt to FCF ratio of BNS is 12.69, which is on the high side as it means it would take BNS, 12.69 years of fcf income to pay off all of its debts.
BNS has a Debt to FCF ratio of 12.69. This is amonst the worse of the industry: BNS underperforms 80.81% of its industry peers.
BNS has a Debt/Equity ratio of 2.63. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.63, BNS is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.63
Debt/FCF 12.69
Altman-Z N/A
ROIC/WACCN/A
WACC13.71%
BNS Yearly LT Debt VS Equity VS FCFBNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
BNS Yearly Current Assets VS Current LiabilitesBNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.51% 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.
BNS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.64%.
BNS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.64% yearly.
EPS 1Y (TTM)2.51%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%4.14%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%11.13%

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 8.36% on average per year.
Based on estimates for the next years, BNS will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
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 5Y3.15%

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.
BNS Yearly Revenue VS EstimatesBNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
BNS Yearly EPS VS EstimatesBNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.06, the valuation of BNS can be described as very reasonable.
61.11% of the companies in the same industry are more expensive than BNS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.82. BNS is valued rather cheaply when compared to this.
BNS is valuated reasonably with a Price/Forward Earnings ratio of 9.07.
BNS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BNS to the average of the S&P500 Index (21.76), we can say BNS is valued rather cheaply.
Industry RankSector Rank
PE 11.06
Fwd PE 9.07
BNS Price Earnings VS Forward Price EarningsBNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, BNS is valued cheaper than 92.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.08
EV/EBITDA N/A
BNS Per share dataBNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y11.03%
EPS Next 3Y8.36%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.91%, BNS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, BNS pays a better dividend. On top of this BNS pays more dividend than 93.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, BNS pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.91%

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.
The dividend of BNS decreased recently.
Dividend Growth(5Y)4.87%
Div Incr Years1
Div Non Decr Years1
BNS Yearly Dividends per shareBNS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

91.55% 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.
DP91.55%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
BNS Yearly Income VS Free CF VS DividendBNS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B
BNS Dividend Payout.BNS Dividend Payout, showing the Payout Ratio.BNS Dividend Payout.PayoutRetained Earnings

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BANK OF NOVA SCOTIA

NYSE:BNS (5/23/2025, 9:16:26 PM)

After market: 52.44 +0.25 (+0.48%)

52.19

+0.57 (+1.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-25 2025-02-25/bmo
Earnings (Next)05-27 2025-05-27/bmo
Inst Owners50.4%
Inst Owner Change4.03%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap65.01B
Analysts66.32
Price Target56.14 (7.57%)
Short Float %2.01%
Short Ratio11.95
Dividend
Industry RankSector Rank
Dividend Yield 5.91%
Yearly Dividend3.3
Dividend Growth(5Y)4.87%
DP91.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01 2025-04-01 (1.06)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.37%
Min EPS beat(2)-2.7%
Max EPS beat(2)5.44%
EPS beat(4)2
Avg EPS beat(4)0.6%
Min EPS beat(4)-2.7%
Max EPS beat(4)5.44%
EPS beat(8)3
Avg EPS beat(8)-3.08%
EPS beat(12)5
Avg EPS beat(12)-1.95%
EPS beat(16)9
Avg EPS beat(16)0.09%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-1.63%
Revenue beat(16)3
Avg Revenue beat(16)-1.48%
PT rev (1m)2.02%
PT rev (3m)-2.21%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)2.99%
Valuation
Industry RankSector Rank
PE 11.06
Fwd PE 9.07
P/S 2.6
P/FCF 5.08
P/OCF 4.98
P/B 1.06
P/tB 1.31
EV/EBITDA N/A
EPS(TTM)4.72
EY9.04%
EPS(NY)5.75
Fwd EY11.02%
FCF(TTM)10.27
FCFY19.68%
OCF(TTM)10.47
OCFY20.07%
SpS20.04
BVpS49.1
TBVpS39.71
PEG (NY)1.23
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.43%
ROE 7.36%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 18.04%
GM N/A
FCFM 51.25%
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 RankSector Rank
Debt/Equity 2.63
Debt/FCF 12.69
Debt/EBITDA N/A
Cap/Depr 20.15%
Cap/Sales 1.01%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 284.04%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC13.71%
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)2.51%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%4.14%
EPS Next Y8.96%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%11.13%
Revenue Next Year8.78%
Revenue Next 2Y6.43%
Revenue Next 3Y5.07%
Revenue Next 5Y3.15%
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 1Y39.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.6%
OCF growth 3YN/A
OCF growth 5YN/A