BANK OF NOVA SCOTIA (BNS)
CA0641491075 - Common Stock
We assign a fundamental rating of 4 out of 10 to BNS. BNS was compared to 411 industry peers in the Banks industry. The financial health of BNS is average, but there are quite some concerns on its profitability. BNS has a decent growth rate and is not valued too expensively.
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.
In multiple years BNS reported negative operating cash flow during the last 5 years.
1.2 Ratios
BNS has a Return On Assets of 0.53%. This is in the lower half of the industry: BNS underperforms 77.86% of its industry peers.
With a Return On Equity value of 9.43%, BNS perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
| 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
The Profit Margin of BNS (22.67%) is comparable to the rest of the industry.
BNS's Profit Margin has declined in the last couple of years.
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.
Compared to 1 year ago, BNS has more shares outstanding
The number of shares outstanding for BNS has been reduced compared to 5 years ago.
Compared to 1 year ago, BNS has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BNS is 12.47, which is on the high side as it means it would take BNS, 12.47 years of fcf income to pay off all of its debts.
BNS has a Debt to FCF ratio of 12.47. This is in the lower half of the industry: BNS underperforms 79.56% 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 Debt to Equity ratio of 2.71. This is amonst the worse of the industry: BNS underperforms 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 Current ratio of 2.27. This is amongst the best in the industry. BNS outperforms 100.00% of its industry peers.
A Quick Ratio of 2.27 indicates that BNS has no problem at all paying its short term obligations.
The Quick ratio of BNS (2.27) is better than 100.00% of its industry peers.
| 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%.
Measured over the past years, BNS shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.32% on average per year.
Looking at the last year, BNS shows a small growth in Revenue. The Revenue has grown by 4.51% in the last year.
The Revenue has been growing slightly by 2.34% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.77% 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 5.91% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BNS is valuated reasonably with a Price/Earnings ratio of 10.13.
Compared to the rest of the industry, the Price/Earnings ratio of BNS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.95, BNS is valued rather cheaply.
A Price/Forward Earnings ratio of 9.07 indicates a reasonable valuation of BNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BNS indicates a somewhat cheap valuation: BNS is cheaper than 70.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BNS is valued cheaply inside the industry as 88.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.61 | ||
| 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)8.68
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 3.93, BNS pays a better dividend. On top of this BNS pays more dividend than 93.19% 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 2.45.
| 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
BNS pays out 73.90% of its income as dividend. 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 (4/22/2024, 7:04:01 PM)
Premarket: 47.13 +0.04 (+0.08%)47.09
+0.35 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.55B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 10.13 | ||
| Fwd PE | 9.07 | ||
| 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)8.68
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