BANK OF NOVA SCOTIA (BNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BNS - CA0641491075 - Common Stock
74.17 USD
+0.09 (+0.12%)
74.17 USD
0 (0%)
BNS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 388 industry peers in the Banks industry. BNS may be in some trouble as it scores bad on both profitability and health. 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
In the past year BNS was profitable.
In the past year BNS had a positive cash flow from operations.
Each year in the past 5 years BNS has been profitable.
BNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BNS (0.50%) is worse than 78.09% of its industry peers.
Looking at the Return On Equity, with a value of 8.36%, BNS is in line with its industry, outperforming 44.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.36% | ||
| ROIC | N/A |
ROA(3y)0.5%
ROA(5y)0.6%
ROE(3y)8.74%
ROE(5y)10.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BNS has a worse Profit Margin (19.24%) than 68.81% 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) | 19.24% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-14.46%
PM growth 5Y-1.74%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BNS has more shares outstanding
Compared to 1 year ago, BNS has an improved debt to assets ratio.
2.2 Solvency
BNS has a debt to FCF ratio of 46.43. This is a negative value and a sign of low solvency as BNS would need 46.43 years to pay back of all of its debts.
With a Debt to FCF ratio value of 46.43, BNS is not doing good in the industry: 85.05% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.68 is on the high side and indicates that BNS has dependencies on debt financing.
BNS's Debt to Equity ratio of 2.68 is on the low side compared to the rest of the industry. BNS is outperformed by 92.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 46.43 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.13%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.58%, which is quite good.
BNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.75% yearly.
The Revenue has grown by 12.09% in the past year. This is quite good.
Measured over the past years, BNS shows a small growth in Revenue. The Revenue has been growing by 3.79% on average per year.
EPS 1Y (TTM)9.58%
EPS 3Y-5.83%
EPS 5Y5.75%
EPS Q2Q%22.93%
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.31%
Revenue growth 5Y3.79%
Sales Q2Q%14.98%
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 12.97% on average per year.
The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y14.63%
EPS Next 2Y13.4%
EPS Next 3Y12.97%
EPS Next 5YN/A
Revenue Next Year5.18%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
Revenue Next 5Y2.97%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.32 indicates a correct valuation of BNS.
Based on the Price/Earnings ratio, BNS is valued a bit more expensive than the industry average as 61.86% of the companies are valued more cheaply.
BNS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.49, which indicates a correct valuation of BNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BNS indicates a slightly more expensive valuation: BNS is more expensive than 65.46% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BNS to the average of the S&P500 Index (23.46), we can say BNS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.49 |
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 76.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BNS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BNS's earnings are expected to grow with 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)2.49
EPS Next 2Y13.4%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, BNS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.74, BNS pays a better dividend. On top of this BNS pays more dividend than 85.57% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of BNS has a limited annual growth rate of 4.75%.
BNS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.75%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BNS pays out 80.91% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BNS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.91%
EPS Next 2Y13.4%
EPS Next 3Y12.97%
74.17
+0.09 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.47%
Inst Owner Change-4.9%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap91.70B
Revenue(TTM)37.74B
Net Income(TTM)7.26B
Analysts67.37
Price Target75.27 (1.48%)
Short Float %1.04%
Short Ratio8.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend3.46
Dividend Growth(5Y)4.75%
DP80.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.74%
Min EPS beat(2)3.68%
Max EPS beat(2)7.79%
EPS beat(4)3
Avg EPS beat(4)3.36%
Min EPS beat(4)-3.49%
Max EPS beat(4)7.79%
EPS beat(8)5
Avg EPS beat(8)1.77%
EPS beat(12)5
Avg EPS beat(12)-2.19%
EPS beat(16)8
Avg EPS beat(16)-0.71%
Revenue beat(2)2
Avg Revenue beat(2)2.09%
Min Revenue beat(2)1.03%
Max Revenue beat(2)3.15%
Revenue beat(4)3
Avg Revenue beat(4)2.16%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)4.76%
Revenue beat(8)4
Avg Revenue beat(8)0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)5
Avg Revenue beat(16)-0.9%
PT rev (1m)15.26%
PT rev (3m)15.94%
EPS NQ rev (1m)2.09%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)1.78%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.49 | ||
| P/S | 3.32 | ||
| P/FCF | 24.8 | ||
| P/OCF | 23.2 | ||
| P/B | 1.44 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.18
EY6.98%
EPS(NY)5.94
Fwd EY8.01%
FCF(TTM)2.99
FCFY4.03%
OCF(TTM)3.2
OCFY4.31%
SpS22.31
BVpS51.35
TBVpS41.79
PEG (NY)0.98
PEG (5Y)2.49
Graham Number77.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 8.36% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 19.24% | ||
| GM | N/A | ||
| FCFM | 13.41% |
ROA(3y)0.5%
ROA(5y)0.6%
ROE(3y)8.74%
ROE(5y)10.53%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-14.46%
PM growth 5Y-1.74%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.68 | ||
| Debt/FCF | 46.43 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.63% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 69.69% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC12.13%
ROIC/WACCN/A
Cap/Depr(3y)24.57%
Cap/Depr(5y)28.32%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.41%
Profit Quality(3y)243.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.58%
EPS 3Y-5.83%
EPS 5Y5.75%
EPS Q2Q%22.93%
EPS Next Y14.63%
EPS Next 2Y13.4%
EPS Next 3Y12.97%
EPS Next 5YN/A
Revenue 1Y (TTM)12.09%
Revenue growth 3Y6.31%
Revenue growth 5Y3.79%
Sales Q2Q%14.98%
Revenue Next Year5.18%
Revenue Next 2Y5.09%
Revenue Next 3Y4.56%
Revenue Next 5Y2.97%
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-66.63%
FCF growth 3Y-32.39%
FCF growth 5Y-38.15%
OCF growth 1Y-65.45%
OCF growth 3Y-31.66%
OCF growth 5Y-37.49%
BANK OF NOVA SCOTIA / BNS FAQ
What is the fundamental rating for BNS stock?
ChartMill assigns a fundamental rating of 3 / 10 to BNS.
What is the valuation status for BNS stock?
ChartMill assigns a valuation rating of 2 / 10 to BANK OF NOVA SCOTIA (BNS). This can be considered as Overvalued.
How profitable is BANK OF NOVA SCOTIA (BNS) stock?
BANK OF NOVA SCOTIA (BNS) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for BNS stock?
The Price/Earnings (PE) ratio for BANK OF NOVA SCOTIA (BNS) is 14.32 and the Price/Book (PB) ratio is 1.44.
Is the dividend of BANK OF NOVA SCOTIA sustainable?
The dividend rating of BANK OF NOVA SCOTIA (BNS) is 7 / 10 and the dividend payout ratio is 80.91%.