BNS

Bank of Nova ScotiaTSX:BNS Stock Report

Market Cap

CA$95.0b

7D

0.2%

1Y

41.8%

Updated

18 Sep, 2021

Data

Company Financials +
BNS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends6/6

BNS Overview

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally.

Bank of Nova Scotia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bank of Nova Scotia
Historical stock prices
Current Share PriceCA$78.19
52 Week HighCA$53.54
52 Week LowCA$82.35
Beta0.84
1 Month Change-1.78%
3 Month Change-1.49%
1 Year Change41.78%
3 Year Change0.24%
5 Year Change10.96%
Change since IPO1,795.52%

Recent News & Updates

Sep 10
Bank of Nova Scotia (TSE:BNS) Is Due To Pay A Dividend Of CA$0.90

Bank of Nova Scotia (TSE:BNS) Is Due To Pay A Dividend Of CA$0.90

The Bank of Nova Scotia ( TSE:BNS ) has announced that it will pay a dividend of CA$0.90 per share on the 27th of...

Aug 27
Bank of Nova Scotia's (TSE:BNS) Dividend Will Be CA$0.90

Bank of Nova Scotia's (TSE:BNS) Dividend Will Be CA$0.90

The board of The Bank of Nova Scotia ( TSE:BNS ) has announced that it will pay a dividend of CA$0.90 per share on the...

Shareholder Returns

BNSCA BanksCA Market
7D0.2%-0.3%-0.6%
1Y41.8%39.2%29.0%

Return vs Industry: BNS exceeded the Canadian Banks industry which returned 39.2% over the past year.

Return vs Market: BNS exceeded the Canadian Market which returned 29% over the past year.

Price Volatility

Is BNS's price volatile compared to industry and market?
BNS volatility
BNS Beta0.84
Industry Beta0.92
Market Beta1

Stable Share Price: BNS is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BNS's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
183290,833Brian Porterhttps://www.scotiabank.com

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Banking and Markets, and Global Wealth Management segments. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small businesses and commercial customers, including automotive financing solutions to dealers and their customers.

Bank of Nova Scotia Fundamentals Summary

How do Bank of Nova Scotia's earnings and revenue compare to its market cap?
BNS fundamental statistics
Market CapCA$95.01b
Earnings (TTM)CA$8.73b
Revenue (TTM)CA$28.28b

10.9x

P/E Ratio

1.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BNS income statement (TTM)
RevenueCA$28.28b
Cost of RevenueCA$0
Gross ProfitCA$28.28b
ExpensesCA$19.56b
EarningsCA$8.73b

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)7.19
Gross Margin100.00%
Net Profit Margin30.85%
Debt/Equity Ratio249.1%

How did BNS perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

50%

Payout Ratio

Does BNS pay a reliable dividends?

See BNS dividend history and benchmarks
When do you need to buy BNS by to receive an upcoming dividend?
Bank of Nova Scotia dividend dates
Ex Dividend DateOct 04 2021
Dividend Pay DateOct 27 2021
Days until Ex dividend15 days
Days until Dividend pay date38 days

Does BNS pay a reliable dividends?

See BNS dividend history and benchmarks

Valuation

Is Bank of Nova Scotia undervalued compared to its fair value and its price relative to the market?

35.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNS (CA$78.19) is trading below our estimate of fair value (CA$120.6)

Significantly Below Fair Value: BNS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BNS is good value based on its PE Ratio (10.9x) compared to the Canadian Banks industry average (11.2x).

PE vs Market: BNS is good value based on its PE Ratio (10.9x) compared to the Canadian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: BNS is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: BNS is good value based on its PB Ratio (1.4x) compared to the CA Banks industry average (1.5x).


Future Growth

How is Bank of Nova Scotia forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNS's forecast earnings growth (3% per year) is above the savings rate (1.5%).

Earnings vs Market: BNS's earnings (3% per year) are forecast to grow slower than the Canadian market (12.2% per year).

High Growth Earnings: BNS's earnings are forecast to grow, but not significantly.

Revenue vs Market: BNS's revenue (5.1% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: BNS's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNS's Return on Equity is forecast to be low in 3 years time (13.9%).


Past Performance

How has Bank of Nova Scotia performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNS has high quality earnings.

Growing Profit Margin: BNS's current net profit margins (30.8%) are higher than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: BNS's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: BNS's earnings growth over the past year (25.1%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: BNS earnings growth over the past year (25.1%) underperformed the Banks industry 36.4%.


Return on Equity

High ROE: BNS's Return on Equity (12.9%) is considered low.


Financial Health

How is Bank of Nova Scotia's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BNS's Assets to Equity ratio (16.1x) is moderate.

Allowance for Bad Loans: BNS has a sufficient allowance for bad loans (128%).

Low Risk Liabilities: 73% of BNS's liabilities are made up of primarily low risk sources of funding.

Loan Level: BNS has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: BNS's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: BNS has an appropriate level of bad loans (0.7%).


Dividend

What is Bank of Nova Scotia current dividend yield, its reliability and sustainability?

4.60%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateOct 04 2021Dividend Pay DateOct 27 202123 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BNS's dividend (4.6%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: BNS's dividend (4.6%) is in the top 25% of dividend payers in the Canadian market (4.51%)


Stability and Growth of Payments

Stable Dividend: BNS's dividends per share have been stable in the past 10 years.

Growing Dividend: BNS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50%), BNS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNS's dividends in 3 years are forecast to be well covered by earnings (45.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Brian Porter (63 yo)

7.83yrs

Tenure

CA$12,221,588

Compensation

Mr. Brian Johnston Porter, B.com., is President and Chief Executive Officer of Bank of Nova Scotia since November 2012 and since November 2013 respectively. He joined Bank of Nova Scotia in 1981. He served...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD9.59M) is above average for companies of similar size in the Canadian market ($USD5.88M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BNS's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: BNS's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BNS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Bank of Nova Scotia's employee growth, exchange listings and data sources


Key Information

  • Name: The Bank of Nova Scotia
  • Ticker: BNS
  • Exchange: TSX
  • Founded: 1832
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$95.011b
  • Shares outstanding: 1.22b
  • Website: https://www.scotiabank.com

Number of Employees


Location

  • The Bank of Nova Scotia
  • Bank of Nova Scotia Building
  • 1709 Hollis Street
  • Halifax
  • Nova Scotia
  • B3J 1W1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:05
End of Day Share Price2021/09/17 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.