DB:BN9

Stock Analysis Report

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Executive Summary

The Bank of New York Mellon Corporation provides a range of financial products and services to in the United States and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Bank of New York Mellon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BN9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

BN9

3.4%

DE Capital Markets

1.5%

DE Market


1 Year Return

-14.8%

BN9

24.4%

DE Capital Markets

-1.8%

DE Market

Return vs Industry: BN9 underperformed the German Capital Markets industry which returned 26.1% over the past year.

Return vs Market: BN9 underperformed the German Market which returned -0.7% over the past year.


Shareholder returns

BN9IndustryMarket
7 Day3.2%3.4%1.5%
30 Day0.3%10.2%4.3%
90 Day9.2%38.8%25.1%
1 Year-12.3%-14.8%26.0%24.4%0.2%-1.8%
3 Year-20.1%-25.5%-1.9%-6.1%1.3%-6.9%
5 Year3.5%-6.6%-17.9%-29.1%15.0%-0.2%

Price Volatility Vs. Market

How volatile is Bank of New York Mellon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bank of New York Mellon undervalued compared to its fair value and its price relative to the market?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BN9 (€34.15) is trading below our estimate of fair value (€57.46)

Significantly Below Fair Value: BN9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BN9 is good value based on its PE Ratio (8.1x) compared to the Capital Markets industry average (21.2x).

PE vs Market: BN9 is good value based on its PE Ratio (8.1x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: BN9's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BN9 is good value based on its PB Ratio (0.9x) compared to the DE Capital Markets industry average (1.7x).


Next Steps

Future Growth

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

-0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BN9's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: BN9's earnings are forecast to decline over the next 3 years (-1.8% per year).

High Growth Earnings: BN9's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BN9's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: BN9's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BN9's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Bank of New York Mellon performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BN9 has high quality earnings.

Growing Profit Margin: BN9's current net profit margins (25.9%) are higher than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: BN9's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: BN9's earnings growth over the past year (11.5%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: BN9 earnings growth over the past year (11.5%) exceeded the Capital Markets industry 7.9%.


Return on Equity

High ROE: BN9's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is Bank of New York Mellon'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: BN9's Assets to Equity ratio (11.3x) is moderate.

Allowance for Bad Loans: BN9 has a sufficient allowance for bad loans (161%).

Low Risk Liabilities: 79% of BN9's liabilities are made up of primarily low risk sources of funding.

Loan Level: BN9 has an appropriate level of Loans to Assets ratio (13%).

Low Risk Deposits: BN9's Loans to Deposits ratio (18%) is appropriate.

Level of Bad Loans: BN9 has an appropriate level of bad loans (0.1%).


Next Steps

Dividend

What is Bank of New York Mellon current dividend yield, its reliability and sustainability?

3.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BN9's dividend (3.3%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: BN9's dividend (3.3%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: BN9's dividends per share have been stable in the past 10 years.

Growing Dividend: BN9's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), BN9's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BN9's dividends in 3 years are forecast to be well covered by earnings (33.1% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Todd Gibbons (63yo)

0.83

Tenure

US$12,525,701

Compensation

Mr. Thomas P. Gibbons, also known as Todd, has been Chief Executive Officer of Bank of New York Mellon Corporation since March 30, 2020 and Director since September 27, 2019 and served as an Interim Chief  ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD12.53M) is above average for companies of similar size in the German market ($USD5.36M).

Compensation vs Earnings: Todd's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gibbons
CEO & Director0.83yrUS$12.53m0.041% $12.0m
Michael Santomassimo
Chief Financial Officer2.5yrsUS$5.21m0.0033% $978.2k
Bridget Engle
Senior EVP & Chief Information Officer3.08yrsUS$4.73m0.0014% $407.8k
Mitchell Harris
Chief Executive Officer of Investment Management9.17yrsUS$7.40m0.013% $3.9m
Lester Owens
Senior EVP & Head of Operations1.42yrsUS$7.37m0.0026% $768.4k
Ann Fogarty
MD & Interim Head of Operations0.17yrno datano data
James Wiener
Senior EVP0.17yrno data0.0078% $2.3m
Sabet Elias
Chief Technology Officer1.75yrsno datano data
Magda Palczynska
Global Head of Investor Relations1.33yrsno datano data
Mark Musi
Chief Compliance & Ethics Officerno datano datano data

1.4yrs

Average Tenure

59yo

Average Age

Experienced Management: BN9's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Gibbons
CEO & Director0.83yrUS$12.53m0.041% $12.0m
Edmund Kelly
Independent Director13yrsUS$305.00k0.00050% $147.8k
Samuel Scott
Independent Director13yrsUS$295.97k0.00045% $133.0k
Alfred Zollar
Independent Director1.25yrsUS$210.00kno data
Jeffrey Goldstein
Independent Director6.25yrsUS$295.00kno data
Linda Cook
Independent Director3.58yrsUS$275.00kno data
Elizabeth Robinson
Independent Director3.75yrsUS$431.25kno data
Joseph Echevarria
Independent Chairman of the Board0.83yrUS$355.00kno data
Jennifer Morgan
Independent Director3.58yrsUS$275.00kno data
Frederick Terrell
Independent Director0.25yrno datano data

3.6yrs

Average Tenure

64yo

Average Age

Experienced Board: BN9's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BN9 insiders have only sold shares 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 New York Mellon Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Bank of New York Mellon Corporation
  • Ticker: BN9
  • Exchange: DB
  • Founded: 1784
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$33.284b
  • Listing Market Cap: US$29.553b
  • Shares outstanding: 885.44m
  • Website: https://www.bnymellon.com

Number of Employees


Location

  • The Bank of New York Mellon Corporation
  • 240 Greenwich Street
  • New York
  • New York
  • 10286
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
BN9DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
BK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
0HLQLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
BN9ETLX (Eurotlx)YesCommon StockITEURJan 1969
BONYWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
BK.PRCNYSE (New York Stock Exchange)DP1/4000 PFD-CUSUSDSep 2012
A1HK20DB (Deutsche Boerse AG)PERP JR D NT4.5%DEUSDMay 2013
BONY34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM STK USD0.01BRBRLAug 2015

Biography

The Bank of New York Mellon Corporation provides a range of financial products and services to in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. The Investment Service segment offers custody, accounting, exchange-traded funds services, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, brokerage and data analytics, clearing, trading, investment, wealth and retirement solutions, technology and enterprise data management, corporate trust, depositary receipts, payments, receivables processing and payables management, trade finance and processing, and collateral management services. The Investment Management segment provides diversified investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, and private banking services. The company also engages in leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit activities. It serves asset managers, banks, broker-dealers, corporations, financial intermediaries, governments, high net worth individuals, insurance companies, non-profit organizations, pensions, and sovereign institutions. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 21:39
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.