BANK OF NOVA SCOTIA (BNS.CA) Stock Fundamental Analysis
TSX:BNS - Toronto Stock Exchange - CA0641491075 - Common Stock - Currency: CAD
BNS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 30 industry peers in the Banks industry. Both the profitability and financial health of BNS have multiple concerns. While showing a medium growth rate, BNS is valued expensive at the moment.
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.
BNS had positive earnings in each of the past 5 years.
Of the past 5 years BNS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.43%, BNS is doing worse than 70.00% of the companies in the same industry.
BNS's Return On Equity of 7.36% is on the low side compared to the rest of the industry. BNS is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 7.36% | ||
| 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
The Profit Margin of BNS (18.04%) is worse than 70.00% 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) | 18.04% | ||
| 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.
Compared to 1 year ago, BNS has more shares outstanding
The number of shares outstanding for BNS has been increased compared to 5 years ago.
The debt/assets ratio for BNS is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BNS is 12.69, which is on the high side as it means it would take BNS, 12.69 years of fcf income to pay off all of its debts.
BNS has a worse Debt to FCF ratio (12.69) than 60.00% of its industry peers.
BNS has a Debt/Equity ratio of 2.63. This is a high value indicating a heavy dependency on external financing.
BNS has a Debt to Equity ratio of 2.63. This is in the lower half of the industry: BNS underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 12.69 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.77%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.51%.
BNS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.98% yearly.
BNS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.64%.
The Revenue has been growing slightly by 1.64% on average over the past years.
EPS 1Y (TTM)2.51%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%4.14%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%11.13%
3.2 Future
Based on estimates for the next years, BNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y8.96%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue Next Year9.04%
Revenue Next 2Y6.9%
Revenue Next 3Y5.3%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.29, the valuation of BNS can be described as very reasonable.
Based on the Price/Earnings ratio, BNS is valued a bit more expensive than 76.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of BNS to the average of the S&P500 Index (28.92), we can say BNS is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.44, the valuation of BNS can be described as very reasonable.
BNS's Price/Forward Earnings ratio is rather expensive when compared to the industry. BNS is more expensive than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BNS to the average of the S&P500 Index (21.65), we can say BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BNS indicates a slightly more expensive valuation: BNS is more expensive than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BNS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y11.03%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.45%, BNS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.53, BNS pays a better dividend. On top of this BNS pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, BNS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
5.2 History
The dividend of BNS has a limited annual growth rate of 4.87%.
BNS has been paying a dividend for at least 10 years, so it has a reliable track record.
BNS has decreased its dividend recently.
Dividend Growth(5Y)4.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BNS pays out 91.55% 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.
DP91.55%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
TSX:BNS (4/24/2025, 7:00:00 PM)
67.31
+0.04 (+0.06%)
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 Cap83.84B
Analysts66.32
Price Target79.15 (17.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
Yearly Dividend4.61
Dividend Growth(5Y)4.87%
DP91.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.37%
Min EPS beat(2)-2.7%
Max EPS beat(2)5.44%
EPS beat(4)2
Avg EPS beat(4)0.6%
Min EPS beat(4)-2.7%
Max EPS beat(4)5.44%
EPS beat(8)3
Avg EPS beat(8)-3.08%
EPS beat(12)5
Avg EPS beat(12)-1.95%
EPS beat(16)9
Avg EPS beat(16)0.09%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-1.63%
Revenue beat(16)3
Avg Revenue beat(16)-1.48%
PT rev (1m)-2.16%
PT rev (3m)-3.18%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-4%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 8.44 | ||
| P/S | 2.42 | ||
| P/FCF | 4.73 | ||
| P/OCF | 4.63 | ||
| P/B | 0.99 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.54
EY9.72%
EPS(NY)7.98
Fwd EY11.85%
FCF(TTM)14.24
FCFY21.16%
OCF(TTM)14.52
OCFY21.58%
SpS27.79
BVpS68.08
TBVpS55.06
PEG (NY)1.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | 7.36% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 18.04% | ||
| GM | N/A | ||
| FCFM | 51.25% |
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-Score6
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 12.69 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 20.15% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 284.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC13.77%
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)2.51%
EPS 3Y-6.4%
EPS 5Y-1.98%
EPS Q2Q%4.14%
EPS Next Y8.96%
EPS Next 2Y11.03%
EPS Next 3Y8.36%
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%11.13%
Revenue Next Year9.04%
Revenue Next 2Y6.9%
Revenue Next 3Y5.3%
Revenue Next 5Y3.15%
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 1Y39.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.6%
OCF growth 3YN/A
OCF growth 5YN/A