Bank of New York Mellon
Market Cap
US$45.3b
Last Updated
2021/05/17 22:53 UTC
Data Sources
Company Financials +
Executive Summary
The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BK's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-0.3%
BK
-0.8%
US Capital Markets
-0.6%
US Market
1 Year Return
54.4%
BK
65.7%
US Capital Markets
46.0%
US Market
Return vs Industry: BK underperformed the US Capital Markets industry which returned 71.7% over the past year.
Return vs Market: BK exceeded the US Market which returned 50.8% over the past year.
Shareholder returns
| BK | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | -0.8% | -0.6% |
| 30 Day | 13.1% | 3.0% | -1.8% |
| 90 Day | 21.8% | 9.0% | 0.2% |
| 1 Year | 59.3%54.4% | 69.4%65.7% | 48.4%46.0% |
| 3 Year | -2.0%-9.8% | 58.9%47.5% | 60.5%50.4% |
| 5 Year | 43.0%27.1% | 167.4%135.1% | 125.9%100.9% |
Long-Term 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
2 days ago | Simply Wall St
The CEO & Director of The Bank of New York Mellon Corporation (NYSE:BK), Thomas Gibbons, Just Sold 37% Of Their Holding3 weeks ago | Simply Wall St
Senior EVP & General Counsel Jane McCarthy Just Sold A Bunch Of Shares In The Bank of New York Mellon Corporation (NYSE:BK)1 month ago | Simply Wall St
The Bank of New York Mellon Corporation (NYSE:BK) Has Got What It Takes To Be An Attractive Dividend StockValuation
Is Bank of New York Mellon undervalued compared to its fair value and its price relative to the market?
13.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BK ($52.09) is trading below our estimate of fair value ($60.28)
Significantly Below Fair Value: BK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BK is good value based on its PE Ratio (13.9x) compared to the US Capital Markets industry average (16.1x).
PE vs Market: BK is good value based on its PE Ratio (13.9x) compared to the US market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: BK is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: BK is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (67.9x).
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?
3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BK's forecast earnings growth (3.4% per year) is above the savings rate (2%).
Earnings vs Market: BK's earnings (3.4% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: BK's earnings are forecast to grow, but not significantly.
Revenue vs Market: BK's revenue (2.6% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: BK's revenue (2.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BK's Return on Equity is forecast to be low in 3 years time (9.1%).
Past Performance
How has Bank of New York Mellon performed over the past 5 years?
3.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BK has high quality earnings.
Growing Profit Margin: BK's current net profit margins (21.5%) are lower than last year (25.9%).
Past Earnings Growth Analysis
Earnings Trend: BK's earnings have grown by 3.8% per year over the past 5 years.
Accelerating Growth: BK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BK had negative earnings growth (-22.3%) over the past year, making it difficult to compare to the Capital Markets industry average (34.3%).
Return on Equity
High ROE: BK's Return on Equity (7.9%) is considered low.
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: BK's Assets to Equity ratio (10.2x) is moderate.
Allowance for Bad Loans: BK has a sufficient allowance for bad loans (297%).
Low Risk Liabilities: 80% of BK's liabilities are made up of primarily low risk sources of funding.
Loan Level: BK has an appropriate level of Loans to Assets ratio (13%).
Low Risk Deposits: BK's Loans to Deposits ratio (18%) is appropriate.
Level of Bad Loans: BK has an appropriate level of bad loans (0.2%).
Dividend
What is Bank of New York Mellon current dividend yield, its reliability and sustainability?
2.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BK's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: BK's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: BK's dividends per share have been stable in the past 10 years.
Growing Dividend: BK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33%), BK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BK's dividends in 3 years are forecast to be well covered by earnings (31.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Todd Gibbons (63 yo)
1.67yrs
Tenure
US$9,390,555
Compensation
Mr. Thomas P. Gibbons, also known as Todd, has been Chief Executive Officer of Bank of New York Mellon Corporation since March 30, 2020 and Director since September 27, 2019 and served as an Interim Chief ...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($USD9.39M) is about average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: BK's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
Experienced Board: BK's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BK 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: BK
- Exchange: NYSE
- Founded: 1784
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$45.332b
- Shares outstanding: 875.48m
- 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
Biography
The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through three segments: Investment Services, Inves...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/17 22:53 |
| End of Day Share Price | 2021/05/17 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.