BANK OF NEW YORK MELLON CORP (BK)
US0640581007 - Common Stock
BK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 218 industry peers in the Capital Markets industry. Both the profitability and financial health of BK have multiple concerns. BK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BK had positive earnings in the past year.
In the past year BK had a positive cash flow from operations.
BK had positive earnings in each of the past 5 years.
BK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BK has a Return On Assets of 0.75%. This is in the lower half of the industry: BK underperforms 72.09% of its industry peers.
BK's Return On Equity of 7.87% is in line compared to the rest of the industry. BK outperforms 45.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 7.87% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.79%
ROE(3y)7.18%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 18.00%, BK is in line with its industry, outperforming 53.49% of the companies in the same industry.
BK's Profit Margin has declined in the last couple of years.
BK 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) | 18% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-6.97%
PM growth 5Y-6.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for BK has been reduced compared to 1 year ago.
Compared to 5 years ago, BK has less shares outstanding
The debt/assets ratio for BK is higher compared to a year ago.
2.2 Solvency
BK has a debt to FCF ratio of 41.61. This is a negative value and a sign of low solvency as BK would need 41.61 years to pay back of all of its debts.
BK has a Debt to FCF ratio of 41.61. This is comparable to the rest of the industry: BK outperforms 41.86% of its industry peers.
BK has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
BK's Debt to Equity ratio of 1.16 is in line compared to the rest of the industry. BK outperforms 42.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 41.61 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
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 impressive 31.46% over the past year.
The Earnings Per Share has been growing slightly by 3.31% on average over the past years.
Looking at the last year, BK shows a small growth in Revenue. The Revenue has grown by 5.97% in the last year.
BK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.37% yearly.
EPS 1Y (TTM)31.46%
EPS 3Y7.14%
EPS 5Y3.31%
EPS Q2Q%24.59%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y3.54%
Revenue growth 5Y1.37%
Sales Q2Q%6.26%
3.2 Future
Based on estimates for the next years, BK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.24% on average per year.
Based on estimates for the next years, BK will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y22.47%
EPS Next 2Y16.63%
EPS Next 3Y14.78%
EPS Next 5Y9.24%
Revenue Next Year5.07%
Revenue Next 2Y4.08%
Revenue Next 3Y3.84%
Revenue Next 5Y3.02%
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
A Price/Earnings ratio of 14.04 indicates a correct valuation of BK.
The rest of the industry has a similar Price/Earnings ratio as BK.
BK is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.75, which indicates a very decent valuation of BK.
62.33% of the companies in the same industry are more expensive than BK, based on the Price/Forward Earnings ratio.
BK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BK indicates a slightly more expensive valuation: BK is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.38 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BK's 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 BK's earnings are expected to grow with 14.78% in the coming years.
PEG (NY)0.63
PEG (5Y)4.24
EPS Next 2Y16.63%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
BK has a Yearly Dividend Yield of 2.42%.
Compared to an average industry Dividend Yield of 9.01, BK has a dividend in line with its industry peers.
BK's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of BK is nicely growing with an annual growth rate of 8.92%!
BK has been paying a dividend for at least 10 years, so it has a reliable track record.
BK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.92%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
47.36% of the earnings are spent on dividend by BK. This is a bit on the high side, but may be sustainable.
BK's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.36%
EPS Next 2Y16.63%
EPS Next 3Y14.78%
BANK OF NEW YORK MELLON CORP
NYSE:BK (11/18/2024, 8:11:38 PM)
Premarket: 77.8 -0.85 (-1.08%)78.65
+0.36 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 | 14.04 | ||
| Fwd PE | 11.75 | ||
| 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)0.63
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 7.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 18% | ||
| 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 Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)31.46%
EPS 3Y7.14%
EPS 5Y
EPS Q2Q%
EPS Next Y22.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.97%
Revenue growth 3Y3.54%
Revenue growth 5Y
Sales 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