BANK OF NOVA SCOTIA (BNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BNS - CA0641491075 - Common Stock
74.87 USD
+0.47 (+0.63%)
74.87 USD
0 (0%)
Overall BNS gets a fundamental rating of 3 out of 10. We evaluated BNS against 383 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.
- 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.
1.2 Ratios
- BNS has a Return On Assets of 0.50%. This is in the lower half of the industry: BNS underperforms 77.81% of its industry peers.
- Looking at the Return On Equity, with a value of 8.36%, BNS is in line with its industry, outperforming 44.39% 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
- With a Profit Margin value of 19.24%, BNS is not doing good in the industry: 68.93% of the companies in the same industry are doing better.
- 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 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.
- BNS has less shares outstanding than it did 1 year ago.
- BNS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BNS has an improved debt to assets ratio.
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.
- Looking at the Debt to FCF ratio, with a value of 46.43, BNS is doing worse than 84.60% of the companies in the same industry.
- BNS has a Debt/Equity ratio of 2.68. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.68, BNS is doing worse than 91.64% 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
WACC12.13%
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.
- BNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.09%.
- BNS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.79% yearly.
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
- The Earnings Per Share is expected to grow by 7.07% on average over the next years.
- BNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.90% yearly.
EPS Next Y14.31%
EPS Next 2Y13.31%
EPS Next 3Y11.43%
EPS Next 5Y7.07%
Revenue Next Year5.18%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
Revenue Next 5Y3.9%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.54, which indicates a correct valuation of BNS.
- Based on the Price/Earnings ratio, BNS is valued a bit more expensive than the industry average as 65.01% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BNS is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 12.71, the valuation of BNS can be described as correct.
- Based on the Price/Forward Earnings ratio, BNS is valued a bit more expensive than 64.49% of the companies in the same industry.
- BNS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, BNS is valued a bit more expensive than 75.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.18 | ||
| EV/EBITDA | N/A |
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)1.02
PEG (5Y)2.53
EPS Next 2Y13.31%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.29%, BNS is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.61, BNS pays a better dividend. On top of this BNS pays more dividend than 87.21% of the companies listed in the same industry.
- BNS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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 2Y13.31%
EPS Next 3Y11.43%
BANK OF NOVA SCOTIA / BNS FAQ
What is the fundamental rating for BNS stock?
ChartMill assigns a fundamental rating of 3 / 10 to BNS.
Can you provide the valuation status for BANK OF NOVA SCOTIA?
ChartMill assigns a valuation rating of 2 / 10 to BANK OF NOVA SCOTIA (BNS). This can be considered as Overvalued.
How profitable is BANK OF NOVA SCOTIA (BNS) stock?
BANK OF NOVA SCOTIA (BNS) has a profitability rating of 2 / 10.
What are the PE and PB ratios of BANK OF NOVA SCOTIA (BNS) stock?
The Price/Earnings (PE) ratio for BANK OF NOVA SCOTIA (BNS) is 14.54 and the Price/Book (PB) ratio is 1.47.
Can you provide the dividend sustainability for BNS stock?
The dividend rating of BANK OF NOVA SCOTIA (BNS) is 7 / 10 and the dividend payout ratio is 80.91%.