BANK OF NEW YORK MELLON CORP (BK) Stock Fundamental Analysis
NYSE:BK - New York Stock Exchange, Inc. - US0640581007 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BK. BK was compared to 223 industry peers in the Capital Markets industry. BK may be in some trouble as it scores bad on both profitability and health. BK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BK was profitable.
BK had a negative operating cash flow in the past year.
BK had positive earnings in each of the past 5 years.
BK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BK has a Return On Assets of 0.79%. This is in the lower half of the industry: BK underperforms 70.64% of its industry peers.
BK has a Return On Equity of 8.02%. This is comparable to the rest of the industry: BK outperforms 44.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 8.02% | ||
| ROIC | N/A |
ROA(3y)0.79%
ROA(5y)0.78%
ROE(3y)7.93%
ROE(5y)7.9%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BK has a Profit Margin (18.58%) which is in line with its industry peers.
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) | 18.58% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1.48%
PM growth 5Y-2.06%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BK has less shares outstanding
The debt/assets ratio for BK has been reduced compared to a year ago.
2.2 Solvency
BK has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
BK's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. BK outperforms 40.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| 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 22.76% over the past year.
BK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.43% yearly.
Looking at the last year, BK shows a small growth in Revenue. The Revenue has grown by 6.10% in the last year.
BK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
EPS 1Y (TTM)22.76%
EPS 3Y13.05%
EPS 5Y8.43%
EPS Q2Q%34.37%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%12.43%
3.2 Future
BK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.04% yearly.
BK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.
EPS Next Y17.79%
EPS Next 2Y14.79%
EPS Next 3Y13.82%
EPS Next 5Y12.04%
Revenue Next Year5.01%
Revenue Next 2Y4.18%
Revenue Next 3Y4.02%
Revenue Next 5Y3.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.05, BK is valued correctly.
BK's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.47, BK is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.93, the valuation of BK can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BK indicates a somewhat cheap valuation: BK is cheaper than 60.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, BK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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 13.82% in the coming years.
PEG (NY)0.79
PEG (5Y)1.67
EPS Next 2Y14.79%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, BK has a reasonable but not impressive dividend return.
BK's Dividend Yield is slightly below the industry average, which is at 9.39.
BK's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
On average, the dividend of BK grows each year by 8.92%, which is quite nice.
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 Years14
Div Non Decr Years14
5.3 Sustainability
45.49% 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 more than its dividend. This makes the dividend growth sustainable.
DP45.49%
EPS Next 2Y14.79%
EPS Next 3Y13.82%
BANK OF NEW YORK MELLON CORP
NYSE:BK (2/4/2025, 8:04:00 PM)
After market: 84.86 0 (0%)84.86
-0.33 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.57%
Inst Owner Change-0.76%
Ins Owners0.22%
Ins Owner Change0.74%
Market Cap61.70B
Analysts80
Price Target93.17 (9.79%)
Short Float %1.04%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.9
Dividend Growth(5Y)8.92%
DP45.49%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.35%
Min EPS beat(2)2.55%
Max EPS beat(2)4.15%
EPS beat(4)4
Avg EPS beat(4)5.54%
Min EPS beat(4)2.55%
Max EPS beat(4)10.25%
EPS beat(8)6
Avg EPS beat(8)-0.27%
EPS beat(12)8
Avg EPS beat(12)-0.11%
EPS beat(16)12
Avg EPS beat(16)1.18%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.64%
Revenue beat(8)0
Avg Revenue beat(8)-2.77%
Revenue beat(12)0
Avg Revenue beat(12)-2.52%
Revenue beat(16)0
Avg Revenue beat(16)-2.22%
PT rev (1m)7.92%
PT rev (3m)12.57%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)2.64%
EPS NY rev (1m)5.35%
EPS NY rev (3m)9.86%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 11.93 | ||
| P/S | 3.4 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.47 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.04
EY7.12%
EPS(NY)7.11
Fwd EY8.38%
FCF(TTM)-5.85
FCFYN/A
OCF(TTM)-4.03
OCFYN/A
SpS24.94
BVpS57.75
TBVpS27.94
PEG (NY)0.79
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 8.02% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 18.58% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)0.79%
ROA(5y)0.78%
ROE(3y)7.93%
ROE(5y)7.9%
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 3Y1.48%
PM growth 5Y-2.06%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 66.22% | ||
| Cap/Sales | 7.31% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.76%
EPS 3Y13.05%
EPS 5Y8.43%
EPS Q2Q%34.37%
EPS Next Y17.79%
EPS Next 2Y14.79%
EPS Next 3Y13.82%
EPS Next 5Y12.04%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y5.33%
Revenue growth 5Y2.49%
Sales Q2Q%12.43%
Revenue Next Year5.01%
Revenue Next 2Y4.18%
Revenue Next 3Y4.02%
Revenue Next 5Y3.45%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-8.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-144.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-126.88%
OCF growth 3YN/A
OCF growth 5YN/A