Executive Summary
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. More Details
Rewards
Risk Analysis
No risks detected for BNS from our risk checks.
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Bank of Nova Scotia's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
0.9%
BNS
0.9%
CA Banks
0.8%
CA Market
1 Year Return
51.3%
BNS
52.5%
CA Banks
37.1%
CA Market
Return vs Industry: BNS exceeded the Canadian Banks industry which returned 50.1% over the past year.
Return vs Market: BNS exceeded the Canadian Market which returned 37.1% over the past year.
Shareholder returns
| BNS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 0.9% | 0.8% |
| 30 Day | 1.4% | 2.9% | 1.4% |
| 90 Day | 13.2% | 14.8% | 7.6% |
| 1 Year | 60.1%51.3% | 59.9%52.5% | 41.5%37.1% |
| 3 Year | 16.0%-0.9% | 31.0%14.4% | 29.5%17.1% |
| 5 Year | 59.6%25.9% | 80.8%46.1% | 58.9%35.1% |
Long-Term Price Volatility Vs. Market
How volatile is Bank of Nova Scotia's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
How Many The Bank of Nova Scotia (TSE:BNS) Shares Did Insiders Buy, In The Last Year?1 month ago | Simply Wall St
Shareholders Will Most Likely Find The Bank of Nova Scotia's (TSE:BNS) CEO Compensation Acceptable1 month ago | Simply Wall St
Don't Buy The Bank of Nova Scotia (TSE:BNS) For Its Next Dividend Without Doing These ChecksValuation
Is Bank of Nova Scotia undervalued compared to its fair value and its price relative to the market?
11.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BNS (CA$79.26) is trading below our estimate of fair value (CA$89.3)
Significantly Below Fair Value: BNS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BNS is poor value based on its PE Ratio (14.6x) compared to the CA Banks industry average (14.5x).
PE vs Market: BNS is good value based on its PE Ratio (14.6x) compared to the Canadian market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: BNS is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: BNS's PB Ratio (1.4x) is in line with the CA Banks industry average.
Future Growth
How is Bank of Nova Scotia forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
3.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BNS's forecast earnings growth (3.8% per year) is above the savings rate (1.5%).
Earnings vs Market: BNS's earnings (3.8% per year) are forecast to grow slower than the Canadian market (18.2% per year).
High Growth Earnings: BNS's earnings are forecast to grow, but not significantly.
Revenue vs Market: BNS's revenue (7.9% per year) is forecast to grow faster than the Canadian market (7.3% per year).
High Growth Revenue: BNS's revenue (7.9% 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 (12.2%).
Past Performance
How has Bank of Nova Scotia performed over the past 5 years?
0.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BNS has high quality earnings.
Growing Profit Margin: BNS's current net profit margins (26%) are lower than last year (29.5%).
Past Earnings Growth Analysis
Earnings Trend: BNS's earnings have grown by 0.8% per year over the past 5 years.
Accelerating Growth: BNS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BNS had negative earnings growth (-21.2%) over the past year, making it difficult to compare to the Banks industry average (-5.9%).
Return on Equity
High ROE: BNS's Return on Equity (9.7%) 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 (16.4x) is moderate.
Allowance for Bad Loans: BNS has a sufficient allowance for bad loans (144%).
Low Risk Liabilities: 70% 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 (52%).
Low Risk Deposits: BNS's Loans to Deposits ratio (78%) is appropriate.
Level of Bad Loans: BNS has an appropriate level of bad loans (0.9%).
Dividend
What is Bank of Nova Scotia current dividend yield, its reliability and sustainability?
4.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BNS's dividend (4.54%) is higher than the bottom 25% of dividend payers in the Canadian market (1.51%).
High Dividend: BNS's dividend (4.54%) is low compared to the top 25% of dividend payers in the Canadian market (4.7%).
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 (66.2%), BNS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Brian Porter (62 yo)
7.5yrs
Tenure
CA$12,221,588
Compensation
Mr. Brian Johnston Porter, B.com., is President and Chief Executive Officer of Bank of Nova Scotia since November 2012 and since November 2013 respectively. He joined Bank of Nova Scotia in 1981. He served...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD10.02M) is above average for companies of similar size in the Canadian market ($USD6.69M).
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 (3.2 years average tenure).
Board Members
Experienced Board: BNS's board of directors are considered experienced (5.1 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 company bio, 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$96.176b
- Shares outstanding: 1.21b
- 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
Biography
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 throu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 22:47 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2020/10/31 |
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.