NYSE:BK.PRC

Stock Analysis Report

Executive Summary

The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally.


Snowflake Analysis

Flawless balance sheet established dividend payer.


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: BK.PRC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

BK.PRC

0.2%

US Capital Markets

0.06%

US Market


1 Year Return

2.8%

BK.PRC

17.8%

US Capital Markets

19.4%

US Market

Return vs Industry: BK.PRC underperformed the US Capital Markets industry which returned 17.8% over the past year.

Return vs Market: BK.PRC underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

BK.PRCIndustryMarket
7 Day-2.9%0.2%0.06%
30 Day-2.7%0.2%1.1%
90 Day-1.7%6.8%8.9%
1 Year8.2%2.8%20.2%17.8%21.9%19.4%
3 Year17.4%0.5%38.8%30.9%48.9%39.3%
5 Year33.6%3.2%81.4%64.5%71.9%53.1%

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?

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BK.PRC ($25.33) is trading below our estimate of fair value ($28.61)

Significantly Below Fair Value: BK.PRC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BK.PRC is good value based on its PE Ratio (10x) compared to the Capital Markets industry average (36x).

PE vs Market: BK.PRC is good value based on its PE Ratio (10x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BK.PRC is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (6.6x).


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 13 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BK.PRC's earnings are forecast to decline over the next 3 years (-5.6% per year).

Earnings vs Market: BK.PRC's earnings are forecast to decline over the next 3 years (-5.6% per year).

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

Revenue vs Market: BK.PRC's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: BK.PRC's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BK.PRC's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

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

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BK.PRC has high quality earnings.

Growing Profit Margin: BK.PRC's current net profit margins (25.9%) are higher than last year (24.8%).


Past Earnings Growth Analysis

Earnings Trend: BK.PRC's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: BK.PRC's earnings growth over the past year (5%) is below its 5-year average (10% per year).

Earnings vs Industry: BK.PRC earnings growth over the past year (5%) underperformed the Capital Markets industry 8.4%.


Return on Equity

High ROE: BK.PRC's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: BK.PRC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BK.PRC's debt is covered by short term assets (assets are 2.6x debt).


Financial Institutions Analysis

Asset Level: BK.PRC's level of assets compared to its equity is low.

Allowance for Bad Loans: BK.PRC has a sufficient allowance for bad loans.

Low Risk Liabilities: BK.PRC's liabilities are made up of primarily low risk sources of funding.

Loan Level: BK.PRC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BK.PRC's loans are broadly funded by customer deposits.

Level of Bad Loans: BK.PRC has an appropriate level of bad loans (0.16%)


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 19 2020Ex Dividend DateMar 04 2020Dividend Pay DateMar 20 202016 days from Ex DividendBuy in the next 14 days to receive upcoming dividend

Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: BK.PRC's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BK.PRC's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: BK.PRC's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Todd Gibbons (62yo)

0.4yrs

Tenure

US$7,446,178

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD7.45M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gibbons
Interim CEO & Director0.4yrsUS$7.45m0.035% $14.3m
Michael Santomassimo
Chief Financial Officer2.1yrsUS$2.61m0.012% $5.0m
Bridget Engle
Senior Executive VP & Chief Information Officer2.7yrsUS$5.58m0.0040% $1.6m
Mitchell Harris
Senior EVP & CEO of Investment Management8.8yrsUS$8.88m0.0089% $3.6m
Lester Owens
Senior EVP & Head of Operations1yrsno data0.0017% $693.5k
Sabet Elias
Chief Technology Officer1.3yrsno datano data
Magda Palczynska
Global Head of Investor Relations0.9yrsno datano data
Mark Musi
Chief Compliance & Ethics Officer0yrsno datano data
Jane McCarthy
Senior EVP & General Counsel5.8yrsno data0.0069% $2.8m
Eva Radtke
Global Head of Corporate Communications2.8yrsno datano data

2.1yrs

Average Tenure

58yo

Average Age

Experienced Management: BK.PRC's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Gibbons
Interim CEO & Director0.4yrsUS$7.45m0.035% $14.3m
Edmund Kelly
Independent Director12.6yrsUS$279.96k0.00049% $199.9k
Samuel Scott
Independent Director12.6yrsUS$270.79k0.00044% $179.5k
Alfred Zollar
Independent Director0.8yrsno datano data
Jeffrey Goldstein
Independent Director5.8yrsUS$269.96k0.0020% $815.8k
Linda Cook
Independent Director3.2yrsUS$249.96kno data
Elizabeth Robinson
Independent Director3.3yrsUS$374.96k0.000070% $28.6k
Joseph Echevarria
Independent Chairman of the Board0.4yrsUS$329.96k0.0023% $926.0k
Jennifer Morgan
Independent Director3.2yrsUS$249.96k0.00041% $167.2k

3.2yrs

Average Tenure

62yo

Average Age

Experienced Board: BK.PRC's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: BK.PRC
  • Exchange: NYSE
  • Founded: 1784
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$40.792b
  • Shares outstanding: 900.68m
  • 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 institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. It offers investment management, custody, foreign exchange, fund broker-dealer, collateral and liquidity, clearing, corporate trust, global payment, trade finance, and cash management services, as well as securities finance and depositary receipts. The company also provides mutual funds, separate accounts, and wealth management and private banking services; and trust and registered investment advisory services. In addition, it engages in leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit activities. 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 Analysis2020/02/19 01:56
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.