NYSE:BNS

Stock Analysis Report

Bank of Nova Scotia

Executive Summary

The Bank of Nova Scotia provides various banking products and services in North America, Latin America, the Caribbean and Central America, and the Asia-Pacific.

Snowflake

Fundamentals

6 star dividend payer with excellent balance sheet.


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


Market Performance


7 Day Return

-2.5%

NYSE:BNS

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-13.9%

NYSE:BNS

-14.2%

US Banks

-0.4%

US Market

BNS outperformed the Banks industry which returned -16.1% over the past year.

BNS underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

BNSIndustryMarket
7 Day-2.5%-2.6%-1.0%
30 Day-3.6%-5.5%-3.3%
90 Day-3.9%-3.5%0.4%
1 Year-9.7%-13.9%-11.8%-14.2%1.8%-0.4%
3 Year12.3%-1.2%42.2%32.4%39.4%30.4%
5 Year-5.7%-24.0%53.3%36.7%54.2%37.1%

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

Valuation

Is Bank of Nova Scotia undervalued based on future cash flows and its price relative to the stock market?

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bank of Nova Scotia's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bank of Nova Scotia's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Bank of Nova Scotia is good value based on earnings compared to the US Banks industry average.

Bank of Nova Scotia is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bank of Nova Scotia is poor value based on expected growth next year.


Price Based on Value of Assets

Bank of Nova Scotia is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of Nova Scotia's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Bank of Nova Scotia's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Bank of Nova Scotia's revenue growth is positive but not above the United States of America market average.

Bank of Nova Scotia's earnings growth is positive but not above the United States of America market average.

Bank of Nova Scotia's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Bank of Nova Scotia will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank of Nova Scotia's year on year earnings growth rate has been positive over the past 5 years.

Bank of Nova Scotia's 1-year earnings growth is less than its 5-year average (0.1% vs 5.1%)

Bank of Nova Scotia's earnings growth has not exceeded the US Banks industry average in the past year (0.1% vs 33.2%).


Return on Equity

Bank of Nova Scotia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bank of Nova Scotia used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank of Nova Scotia improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

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

Bank of Nova Scotia has an acceptable proportion of non-loan assets held.

Bank of Nova Scotia has a low allowance for bad loans.

Bank of Nova Scotia's liabilities are made up of primarily low risk sources of funding.

Bank of Nova Scotia's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank of Nova Scotia are broadly funded by customer deposits.

Bank of Nova Scotia has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

5.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of Nova Scotia's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Bank of Nova Scotia's dividend is above the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Bank of Nova Scotia's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Brian Porter (61yo)

5.8yrs

Tenure

CA$13,250,990

Compensation

Mr. Brian Johnston Porter serves as President and Chief Executive Officer of Bank of Nova Scotia (the “Bank”). He joined bank in 1981. He served as the Bank’s Chief Risk Officer from 2005 to 2008, as Group ...


CEO Compensation Analysis

Brian's remuneration is about average for companies of similar size in United States of America.

Brian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

The tenure for the Bank of Nova Scotia management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

58.5yo

Average Age

The tenure for the Bank of Nova Scotia board of directors is about average.


Insider Trading

More shares have been bought than sold by Bank of Nova Scotia individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$106,95531 May 19
Brian Porter
EntityIndividual
Role
President
Member of the Board of Directors
Shares2,100
Max PriceUS$50.93
BuyUS$25,84330 May 19
Daniel Rees
EntityIndividual
Shares500
Max PriceUS$51.69
BuyUS$26,59709 Apr 19
Daniel Rees
EntityIndividual
Shares500
Max PriceUS$53.19
BuyUS$26,66501 Apr 19
Daniel Rees
EntityIndividual
Shares500
Max PriceUS$53.33
BuyUS$388,09101 Mar 19
Brian Porter
EntityIndividual
Role
President
Member of the Board of Directors
Shares7,000
Max PriceUS$55.44
BuyUS$365,48110 Jan 19
Aaron Regent
EntityIndividual
Role
Chairman of the Board
Shares7,400
Max PriceUS$49.40
BuyUS$80,83925 Dec 18
Daniel Rees
EntityIndividual
Shares1,630
Max PriceUS$49.60
BuyUS$53,44010 Dec 18
Benita Warmbold
EntityIndividual
Shares1,000
Max PriceUS$53.44
SellUS$31,29011 Oct 18
Andrew H. Branion
EntityIndividual
Shares546
Max PriceUS$57.34
BuyUS$195,26602 Oct 18
Una Power
EntityIndividual
Role
Member of the Board of Directors
Shares3,283
Max PriceUS$59.48
BuyUS$89,76927 Sep 18
Nora Aufreiter
EntityIndividual
Role
Member of the Board of Directors
Shares1,500
Max PriceUS$59.85
BuyUS$289,22013 Sep 18
Brian Porter
EntityIndividual
Role
President
Member of the Board of Directors
Shares5,000
Max PriceUS$57.84
BuyUS$29,28531 Aug 18
Scott Bonham
EntityIndividual
Shares500
Max PriceUS$58.57
BuyUS$11,12830 Aug 18
Tiff Macklem
EntityIndividual
Role
Member of the Board of Directors
Shares190
Max PriceUS$58.57

Ownership Breakdown


Management Team

  • Charles Dallara (70yo)

    Director

    • Compensation: CA$392.97k
  • Michael Zerbs

    Group Head & CTO

    • Tenure: 2.5yrs
  • Maria Theofilaktidis

    Executive VP

    • Tenure: 2.3yrs
  • Tracy Bryan

    Executive Vice President of Global Operations

    • Tenure: 0.2yrs
  • Nacho Deschamps

    Group Head of International Banking & Digital Transformation

    • Tenure: 3.5yrs
    • Compensation: CA$5.91m
  • James O’Sullivan

    Strategic Advisor

    • Tenure: 5.8yrs
    • Compensation: CA$4.69m
  • Phil Thomas

    Executive Vice President of Customer Insights

    • Tenure: 5.3yrs
    • Compensation: CA$235.00k
  • Raj Viswanathan

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: CA$1.89m
  • Brian Porter (61yo)

    President

    • Tenure: 5.8yrs
    • Compensation: CA$13.25m
  • Phil Smith

    Senior Vice President of Investor Relations

    • Tenure: 1.0yrs

Board Members

  • Guillermo Babatz (50yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: CA$397.03k
  • Indira Samarasekera (66yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: CA$235.00k
  • Charles Dallara (70yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: CA$392.97k
  • Aaron Regent (53yo)

    Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: CA$275.00k
  • Susan Segal (66yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: CA$454.30k
  • Nora Aufreiter (59yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: CA$225.00k
  • L. Thomson (49yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$235.00k
  • Brian Porter (61yo)

    President

    • Tenure: 6.3yrs
    • Compensation: CA$13.25m
  • Una Power (54yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$285.00k
  • Tiff Macklem (58yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: CA$459.30k

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: NYSE
  • Founded: 1832
  • Industry: diversified banks
  • Sector: banks
  • Market Cap: CA$82.646b
  • Listing Market Cap: CA$62.186b
  • Shares outstanding: 1.22b
  • Website: Click here

Number of Employees


Location

  • The Bank of Nova Scotia
  • Scotia Plaza
  • 44 King Street West
  • Toronto
  • Ontario
  • M5H 1H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0UKILSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
BNSNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
BNSTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
BKNDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
BNS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
BNS.PRHTSX (The Toronto Stock Exchange)NON CUM 5 PFD 38CACADSep 2016
BNS.PRITSX (The Toronto Stock Exchange)NON CUM PFD 40CACADOct 2018
BNS.PRGTSX (The Toronto Stock Exchange)PFD SER 36CACADMar 2016
BNS.PRDTSX (The Toronto Stock Exchange)PFD SER 31 FLTCACADApr 2015

Biography

The Bank of Nova Scotia provides various banking products and services in North America, Latin America, the Caribbean and Central America, and the Asia-Pacific. The company offers financial advice and solu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 23:33
End of Day Share Price2019/08/16 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


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.