BANK OF NOVA SCOTIA (BNS)
CA0641491075 - Common Stock
Overall BNS gets a fundamental rating of 4 out of 10. We evaluated BNS against 411 industry peers in the Banks industry. While BNS seems to be doing ok healthwise, there are quite some concerns on its profitability. BNS is not valued too expensively and it also shows a decent growth rate.
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.
The reported operating cash flow has been mixed in the past 5 years: BNS reported negative operating cash flow in multiple years.
1.2 Ratios
BNS's Return On Assets of 0.53% is on the low side compared to the rest of the industry. BNS is outperformed by 77.86% of its industry peers.
BNS's Return On Equity of 9.43% is in line compared to the rest of the industry. BNS outperforms 52.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 9.43% | ||
| ROIC | N/A |
ROA(3y)0.67%
ROA(5y)0.67%
ROE(3y)11.85%
ROE(5y)11.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BNS has a Profit Margin of 22.67%. This is comparable to the rest of the industry: BNS outperforms 43.31% 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) | 22.67% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1%
PM growth 5Y-5.72%
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.
The number of shares outstanding for BNS has been reduced compared to 5 years ago.
BNS has a worse debt/assets ratio than last year.
2.2 Solvency
BNS has a debt to FCF ratio of 12.47. This is a negative value and a sign of low solvency as BNS would need 12.47 years to pay back of all of its debts.
The Debt to FCF ratio of BNS (12.47) is worse than 79.81% of its industry peers.
A Debt/Equity ratio of 2.71 is on the high side and indicates that BNS has dependencies on debt financing.
BNS has a worse Debt to Equity ratio (2.71) than 94.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | 12.47 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.68%
2.3 Liquidity
A Current Ratio of 2.27 indicates that BNS has no problem at all paying its short term obligations.
BNS has a better Current ratio (2.27) than 100.00% of its industry peers.
BNS has a Quick Ratio of 2.27. This indicates that BNS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.27, BNS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
BNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.10%.
BNS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.32% yearly.
The Revenue has been growing slightly by 4.51% in the past year.
Measured over the past years, BNS shows a small growth in Revenue. The Revenue has been growing by 2.34% on average per year.
EPS 1Y (TTM)-22.1%
EPS 3Y6.86%
EPS 5Y-1.32%
EPS growth Q2Q-8.65%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y1.02%
Revenue growth 5Y2.34%
Revenue growth Q2Q5.68%
3.2 Future
BNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.77% yearly.
The Revenue is expected to grow by 5.91% on average over the next years.
EPS Next Y1.17%
EPS Next 2Y4.37%
EPS Next 3Y4.77%
EPS Next 5YN/A
Revenue Next Year5.26%
Revenue Next 2Y5.46%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.00, the valuation of BNS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BNS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.20. BNS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.96, which indicates a very decent valuation of BNS.
Based on the Price/Forward Earnings ratio, BNS is valued a bit cheaper than 71.29% of the companies in the same industry.
BNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BNS indicates a rather cheap valuation: BNS is cheaper than 89.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)8.57
PEG (5Y)N/A
EPS Next 2Y4.37%
EPS Next 3Y4.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.61%, BNS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.92, BNS pays a better dividend. On top of this BNS pays more dividend than 93.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
5.2 History
The dividend of BNS has a limited annual growth rate of 5.56%.
BNS has paid a dividend for at least 10 years, which is a reliable track record.
BNS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.56%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
73.90% of the earnings are spent on dividend by BNS. This is not a sustainable payout ratio.
BNS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.9%
EPS Next 2Y4.37%
EPS Next 3Y4.77%
BANK OF NOVA SCOTIA
NYSE:BNS (4/24/2024, 11:46:04 AM)
46.595
-0.7 (-1.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap56.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 8.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 9.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 22.67% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-22.1%
EPS 3Y6.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.51%
Revenue growth 3Y1.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y