BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
TSX:BNS - Toronto Stock Exchange - CA0641491075 - Common Stock - Currency: CAD
We assign a fundamental rating of 2 out of 10 to BNS. BNS was compared to 31 industry peers in the Banks industry. BNS has a bad profitability rating. Also its financial health evaluation is rather negative. BNS is quite expensive at the moment. It does show 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.
BNS had a positive operating cash flow in the past year.
In the past 5 years BNS has always been profitable.
BNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BNS has a worse Return On Assets (0.52%) than 61.29% of its industry peers.
The Return On Equity of BNS (8.85%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 8.85% | ||
| ROIC | N/A |
ROA(3y)0.57%
ROA(5y)0.62%
ROE(3y)10.35%
ROE(5y)10.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BNS's Profit Margin of 21.64% is on the low side compared to the rest of the industry. BNS is outperformed by 61.29% of its industry peers.
BNS's Profit Margin has declined in the last couple of years.
BNS 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) | 21.64% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.37%
PM growth 5Y-3.93%
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.
Compared to 5 years ago, BNS has more shares outstanding
BNS has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BNS is 15.39, which is on the high side as it means it would take BNS, 15.39 years of fcf income to pay off all of its debts.
BNS has a worse Debt to FCF ratio (15.39) than 67.74% of its industry peers.
BNS has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
BNS has a Debt to Equity ratio of 2.83. This is amonst the worse of the industry: BNS underperforms 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 15.39 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.5%
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 by -1.07% in the last year.
BNS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.98% yearly.
The Revenue has been growing slightly by 4.22% in the past year.
BNS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.64% yearly.
EPS 1Y (TTM)-1.07%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%24.6%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%2.62%
3.2 Future
BNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.10% yearly.
BNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
EPS Next Y9.07%
EPS Next 2Y11.56%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year5.91%
Revenue Next 2Y5.79%
Revenue Next 3Y5.01%
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
A Price/Earnings ratio of 11.11 indicates a reasonable valuation of BNS.
Based on the Price/Earnings ratio, BNS is valued expensively inside the industry as 80.65% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of BNS to the average of the S&P500 Index (29.63), we can say BNS is valued rather cheaply.
A Price/Forward Earnings ratio of 10.19 indicates a reasonable valuation of BNS.
80.65% of the companies in the same industry are cheaper than BNS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BNS is valued expensively inside the industry as 80.65% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y11.56%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.85%, BNS is a good candidate for dividend investing.
BNS's Dividend Yield is rather good when compared to the industry average which is at 4.02. BNS pays more dividend than 93.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
5.2 History
The dividend of BNS has a limited annual growth rate of 4.87%.
BNS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BNS decreased recently.
Dividend Growth(5Y)4.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BNS pays out 77.82% of its income as dividend. This is not a sustainable payout ratio.
BNS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.82%
EPS Next 2Y11.56%
EPS Next 3Y10.1%
TSX:BNS (2/21/2025, 7:00:00 PM)
71.89
-0.59 (-0.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners50.4%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap89.54B
Analysts70.53
Price Target81.8 (13.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
Yearly Dividend4.61
Dividend Growth(5Y)4.87%
DP77.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.62%
Min EPS beat(2)-2.7%
Max EPS beat(2)-0.54%
EPS beat(4)2
Avg EPS beat(4)0.17%
Min EPS beat(4)-2.7%
Max EPS beat(4)3.75%
EPS beat(8)2
Avg EPS beat(8)-4.97%
EPS beat(12)5
Avg EPS beat(12)-2.07%
EPS beat(16)9
Avg EPS beat(16)0.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.23%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.9%
Revenue beat(16)3
Avg Revenue beat(16)-1.57%
PT rev (1m)0.05%
PT rev (3m)5.42%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 10.19 | ||
| P/S | 2.66 | ||
| P/FCF | 5.91 | ||
| P/OCF | 5.72 | ||
| P/B | 1.09 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.47
EY9%
EPS(NY)7.06
Fwd EY9.82%
FCF(TTM)12.17
FCFY16.93%
OCF(TTM)12.57
OCFY17.48%
SpS27.03
BVpS66.13
TBVpS52.6
PEG (NY)1.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 8.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 21.64% | ||
| GM | N/A | ||
| FCFM | 45.03% |
ROA(3y)0.57%
ROA(5y)0.62%
ROE(3y)10.35%
ROE(5y)10.79%
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 3Y-10.37%
PM growth 5Y-3.93%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | 15.39 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 27.78% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 208.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC13.5%
ROIC/WACCN/A
Cap/Depr(3y)29.79%
Cap/Depr(5y)33.96%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.72%
Profit Quality(3y)276.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.07%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%24.6%
EPS Next Y9.07%
EPS Next 2Y11.56%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue 1Y (TTM)4.22%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%2.62%
Revenue Next Year5.91%
Revenue Next 2Y5.79%
Revenue Next 3Y5.01%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-51.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-50.66%
OCF growth 3YN/A
OCF growth 5YN/A