BANK OF NOVA SCOTIA (BNS.CA)
CA0641491075 - Common Stock
BNS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 38 industry peers in the Banks industry. BNS has a bad profitability rating. Also its financial health evaluation is rather negative. BNS is not valued too expensively and it also shows 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.
In multiple years BNS reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.50%, BNS is doing worse than 63.16% of the companies in the same industry.
BNS has a Return On Equity of 8.60%. This is comparable to the rest of the industry: BNS outperforms 44.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.6% | ||
| 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 worse Profit Margin (20.96%) than 63.16% 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) | 20.96% | ||
| 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.
BNS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BNS has less shares outstanding
The debt/assets ratio for BNS has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BNS is 17.26, which is on the high side as it means it would take BNS, 17.26 years of fcf income to pay off all of its debts.
BNS has a Debt to FCF ratio of 17.26. This is in the better half of the industry: BNS outperforms 65.79% of its industry peers.
A Debt/Equity ratio of 2.68 is on the high side and indicates that BNS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.68, BNS is doing worse than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 17.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.48%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for BNS have decreased strongly by -16.08% in the last year.
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 5.78% in the last year.
The Revenue has been growing slightly by 2.34% on average over the past years.
EPS 1Y (TTM)-16.08%
EPS 3Y6.86%
EPS 5Y-1.32%
EPS Q2Q%-5.78%
Revenue 1Y (TTM)5.78%
Revenue growth 3Y1.02%
Revenue growth 5Y2.34%
Sales Q2Q%5.15%
3.2 Future
The Earnings Per Share is expected to grow by 6.79% on average over the next years.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y-0.06%
EPS Next 2Y3.78%
EPS Next 3Y6.79%
EPS Next 5YN/A
Revenue Next Year4.93%
Revenue Next 2Y4.9%
Revenue Next 3Y5.21%
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
With a Price/Earnings ratio of 11.48, the valuation of BNS can be described as very reasonable.
BNS's Price/Earnings ratio is rather expensive when compared to the industry. BNS is more expensive than 84.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.52, BNS is valued rather cheaply.
The Price/Forward Earnings ratio is 10.04, which indicates a very decent valuation of BNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BNS indicates a rather expensive valuation: BNS more expensive than 84.21% of the companies listed in the same industry.
BNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BNS indicates a somewhat cheap valuation: BNS is cheaper than 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.78%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
BNS has a Yearly Dividend Yield of 6.04%, which is a nice return.
BNS's Dividend Yield is rather good when compared to the industry average which is at 3.96. BNS pays more dividend than 94.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
5.2 History
The dividend of BNS has a limited annual growth rate of 5.56%.
BNS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BNS decreased recently.
Dividend Growth(5Y)5.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
80.23% of the earnings are spent on dividend by BNS. This is not a sustainable payout ratio.
The dividend of BNS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.23%
EPS Next 2Y3.78%
EPS Next 3Y6.79%
BANK OF NOVA SCOTIA
TSX:BNS (9/13/2024, 7:00:00 PM)
70.72
+0.48 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap86.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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 | 11.48 | ||
| Fwd PE | 10.04 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 20.96% | ||
| 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 | 2.68 | ||
| 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)-16.08%
EPS 3Y6.86%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.78%
Revenue growth 3Y1.02%
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