BANK OF NOVA SCOTIA (BNS) Stock Fundamental Analysis
NYSE:BNS - New York Stock Exchange, Inc. - CA0641491075 - Common Stock - Currency: USD
BNS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 404 industry peers in the Banks industry. BNS has a bad profitability rating. Also its financial health evaluation is rather negative. BNS has a correct valuation and a medium growth rate. Finally BNS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BNS was profitable.
BNS had a positive operating cash flow in the past year.
In the past 5 years BNS has always been profitable.
Of the past 5 years BNS 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.52%, BNS is not doing good in the industry: 71.36% of the companies in the same industry are doing better.
BNS's Return On Equity of 8.85% is in line compared to the rest of the industry. BNS outperforms 57.29% of its industry peers.
| 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 has a Profit Margin (21.64%) which is comparable to the rest of the industry.
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) | 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.
BNS has more shares outstanding than it did 5 years ago.
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 Debt to FCF ratio of 15.39. This is in the lower half of the industry: BNS underperforms 75.88% of its industry peers.
A Debt/Equity ratio of 2.83 is on the high side and indicates that BNS has dependencies on debt financing.
BNS has a Debt to Equity ratio of 2.83. This is amonst the worse of the industry: BNS underperforms 95.23% 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
BNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.07%.
The Earnings Per Share has been decreasing by -1.98% on average over the past years.
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 8.14% yearly.
Based on estimates for the next years, BNS will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y9.43%
EPS Next 2Y11.79%
EPS Next 3Y8.14%
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y5.71%
Revenue Next 3Y3.68%
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
Based on the Price/Earnings ratio of 11.10, the valuation of BNS can be described as reasonable.
72.36% of the companies in the same industry are more expensive than BNS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. BNS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.14, the valuation of BNS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BNS is valued a bit cheaper than the industry average as 71.11% of the companies are valued more expensively.
BNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BNS is valued cheaper than 90.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.9 | ||
| 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)1.18
PEG (5Y)N/A
EPS Next 2Y11.79%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
BNS has a Yearly Dividend Yield of 5.85%, which is a nice return.
Compared to an average industry Dividend Yield of 3.15, BNS pays a better dividend. On top of this BNS pays more dividend than 94.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, 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
77.82% 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.
DP77.82%
EPS Next 2Y11.79%
EPS Next 3Y8.14%
50.5
-0.63 (-1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners50.4%
Inst Owner Change-4.71%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap62.90B
Analysts70.53
Price Target57.4 (13.66%)
Short Float %1.92%
Short Ratio15.18
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)0.97%
PT rev (3m)10.53%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.14 | ||
| P/S | 2.65 | ||
| P/FCF | 5.9 | ||
| P/OCF | 5.71 | ||
| P/B | 1.09 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.55
EY9.01%
EPS(NY)4.98
Fwd EY9.87%
FCF(TTM)8.57
FCFY16.96%
OCF(TTM)8.84
OCFY17.51%
SpS19.02
BVpS46.53
TBVpS37.01
PEG (NY)1.18
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 Y9.43%
EPS Next 2Y11.79%
EPS Next 3Y8.14%
EPS Next 5YN/A
Revenue 1Y (TTM)4.22%
Revenue growth 3Y2.52%
Revenue growth 5Y1.64%
Sales Q2Q%2.62%
Revenue Next Year5.62%
Revenue Next 2Y5.71%
Revenue Next 3Y3.68%
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