BANK OF NOVA SCOTIA (BNS)
CA0641491075 - Common Stock
We assign a fundamental rating of 4 out of 10 to BNS. BNS was compared to 406 industry peers in the Banks industry. BNS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BNS is valued correctly, but it does not seem to be growing. 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.
Of the past 5 years BNS 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: BNS reported negative operating cash flow in multiple years.
1.2 Ratios
BNS has a Return On Assets of 0.50%. This is in the lower half of the industry: BNS underperforms 72.28% of its industry peers.
BNS has a Return On Equity (8.60%) which is comparable to the rest of the industry.
| 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 Profit Margin of 20.96%. This is comparable to the rest of the industry: BNS outperforms 43.07% 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.
There is no outstanding debt for BNS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BNS has a debt to FCF ratio of 17.26. This is a negative value and a sign of low solvency as BNS would need 17.26 years to pay back of all of its debts.
BNS has a Debt to FCF ratio of 17.26. This is in the lower half of the industry: BNS underperforms 75.25% 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.
With a Debt to Equity ratio value of 2.68, BNS is not doing good in the industry: 93.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 17.26 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.97%
2.3 Liquidity
BNS has a Current Ratio of 2.72. This indicates that BNS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BNS (2.72) is better than 100.00% of its industry peers.
A Quick Ratio of 2.72 indicates that BNS has no problem at all paying its short term obligations.
BNS's Quick ratio of 2.72 is amongst the best of the industry. BNS outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
BNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.39%.
The Earnings Per Share has been decreasing by -1.84% on average over the past years.
EPS 1Y (TTM)-0.39%
EPS 3Y-6.19%
EPS 5Y-1.84%
EPS Q2Q%28.12%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.49%
3.2 Future
The Earnings Per Share is expected to grow by 11.83% on average over the next years. This is quite good.
BNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y9.32%
EPS Next 2Y11.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.67%
Revenue Next 2Y5.92%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.81, which indicates a very decent valuation of BNS.
Based on the Price/Earnings ratio, BNS is valued a bit cheaper than the industry average as 65.10% of the companies are valued more expensively.
BNS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 10.81, which indicates a very decent valuation of BNS.
63.12% of the companies in the same industry are more expensive than BNS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, BNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
BNS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BNS is cheaper than 84.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| 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)1.27
PEG (5Y)N/A
EPS Next 2Y11.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.40%, BNS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.02, BNS pays a better dividend. On top of this BNS pays more dividend than 95.30% of the companies listed in the same industry.
BNS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
5.2 History
The dividend of BNS has a limited annual growth rate of 5.56%.
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)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.
BNS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.23%
EPS Next 2Y11.83%
EPS Next 3YN/A
BANK OF NOVA SCOTIA
NYSE:BNS (12/20/2024, 8:04:01 PM)
After market: 53.61 0 (0%)53.61
+0.19 (+0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners46.75%
Inst Owner Change25.33%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap66.71B
Analysts68
Price Target57.2 (6.7%)
Short Float %2.26%
Short Ratio22.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
Dividend Growth(5Y)5.56%
DP80.23%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.18%
Min EPS beat(2)-0.54%
Max EPS beat(2)0.18%
EPS beat(4)2
Avg EPS beat(4)-5.21%
Min EPS beat(4)-24.25%
Max EPS beat(4)3.75%
EPS beat(8)3
Avg EPS beat(8)-4.36%
EPS beat(12)6
Avg EPS beat(12)-1.08%
EPS beat(16)10
Avg EPS beat(16)2.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)1.6%
Revenue beat(8)1
Avg Revenue beat(8)-2.17%
Revenue beat(12)2
Avg Revenue beat(12)-2%
Revenue beat(16)3
Avg Revenue beat(16)-1.69%
PT rev (1m)10.14%
PT rev (3m)12.25%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 10.81 | ||
| P/S | 2.86 | ||
| P/FCF | 7.55 | ||
| P/OCF | 7.26 | ||
| P/B | 1.18 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.54
EY8.47%
EPS(NY)4.96
Fwd EY9.25%
FCF(TTM)7.1
FCFY13.24%
OCF(TTM)7.39
OCFY13.78%
SpS18.72
BVpS45.6
TBVpS36.11
PEG (NY)1.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.6% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.96% | ||
| GM | N/A | ||
| FCFM | 37.92% |
ROA(3y)0.67%
ROA(5y)0.67%
ROE(3y)11.85%
ROE(5y)11.47%
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%
PM growth 5Y-5.72%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 17.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 28.18% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 180.96% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | N/A |
F-Score5
WACC11.97%
ROIC/WACCN/A
Cap/Depr(3y)30.72%
Cap/Depr(5y)31.94%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.39%
EPS 3Y-6.19%
EPS 5Y-1.84%
EPS Q2Q%28.12%
EPS Next Y9.32%
EPS Next 2Y11.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.49%
Revenue Next Year5.67%
Revenue Next 2Y5.92%
Revenue Next 3YN/A
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-48.69%
FCF growth 3Y-17.59%
FCF growth 5Y12.45%
OCF growth 1Y-47.82%
OCF growth 3Y-17.58%
OCF growth 5Y12.24%