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BK

Bank of New York MellonNYSE:BK Stock Report

Last Price

US$57.18

Market Cap

US$46.0b

7D

-10.1%

1Y

36.4%

Updated

23 Jan, 2022

Data

Company Financials +
BK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends5/6

BK Stock Overview

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

Bank of New York Mellon Competitors

BlackRock

NYSE:BLK

US$121.5b

T. Rowe Price Group

NasdaqGS:TROW

US$36.6b

State Street

NYSE:STT

US$33.3b

Franklin Resources

NYSE:BEN

US$16.0b

Price History & Performance

Summary of all time highs, changes and price drops for Bank of New York Mellon
Historical stock prices
Current Share PriceUS$57.18
52 Week HighUS$64.53
52 Week LowUS$39.46
Beta1.16
1 Month Change-1.60%
3 Month Change-3.74%
1 Year Change36.37%
3 Year Change7.08%
5 Year Change27.69%
Change since IPO955.78%

Recent News & Updates

Dec 09

Bank Of New York Mellon: Stable Business Model Combined With Future Growth Potential

The company has a stable fee-based business model and the ability to generate consistent revenue. BNY Mellon reported good Q3 results and that was the 10th consecutive quarter when the company outperformed the previous EPS estimates. The company is not an attractive target with its 2.45% dividend yield but growth investors can find serious value under the surface.

Oct 22
Bank of New York Mellon's (NYSE:BK) Dividend Will Be Increased To US$0.34

Bank of New York Mellon's (NYSE:BK) Dividend Will Be Increased To US$0.34

The Bank of New York Mellon Corporation ( NYSE:BK ) has announced that it will be increasing its dividend on the 12th...

Shareholder Returns

BKUS Capital MarketsUS Market
7D-10.1%-5.1%-6.1%
1Y36.4%23.4%4.2%

Return vs Industry: BK exceeded the US Capital Markets industry which returned 23.4% over the past year.

Return vs Market: BK exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is BK's price volatile compared to industry and market?
BK volatility
BK Average Weekly Movement3.9%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: BK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
178449,100Todd Gibbonshttps://www.bnymellon.com

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, Investment and Wealth Management, and Other. The Investment Service segment offers custody, trust and depositary, 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, investment, wealth and retirement solutions, technology and enterprise data management, trading, corporate trust, depositary receipts, payments, foreign exchange, liquidity management, receivables processing and payables management, trade finance and processing, collateral management, and tri-party services.

Bank of New York Mellon Fundamentals Summary

How do Bank of New York Mellon's earnings and revenue compare to its market cap?
BK fundamental statistics
Market CapUS$45.98b
Earnings (TTM)US$3.55b
Revenue (TTM)US$16.16b

12.9x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BK income statement (TTM)
RevenueUS$16.16b
Cost of RevenueUS$0
Gross ProfitUS$16.16b
ExpensesUS$12.61b
EarningsUS$3.55b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.42
Gross Margin100.00%
Net Profit Margin21.98%
Debt/Equity Ratio146.1%

How did BK perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

31%

Payout Ratio

Does BK pay a reliable dividends?

See BK dividend history and benchmarks
When do you need to buy BK by to receive an upcoming dividend?
Bank of New York Mellon dividend dates
Ex Dividend DateJan 28 2022
Dividend Pay DateFeb 11 2022
Days until Ex dividend3 days
Days until Dividend pay date17 days

Does BK pay a reliable dividends?

See BK dividend history and benchmarks

Valuation

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

33.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BK ($57.18) is trading below our estimate of fair value ($86.23)

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


Price To Earnings Ratio

PE vs Industry: BK is good value based on its PE Ratio (12.9x) compared to the US Capital Markets industry average (14.4x).

PE vs Market: BK is good value based on its PE Ratio (12.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: BK is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BK is good value based on its PB Ratio (1.2x) compared to the US Capital Markets industry average (36.2x).


Future Growth

How is Bank of New York Mellon forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BK's forecast earnings growth (7.9% per year) is above the savings rate (2%).

Earnings vs Market: BK's earnings (7.9% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: BK's earnings are forecast to grow, but not significantly.

Revenue vs Market: BK's revenue (4.6% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: BK's revenue (4.6% 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 (11.7%).


Past Performance

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

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BK has high quality earnings.

Growing Profit Margin: BK's current net profit margins (22%) are lower than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: BK's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: BK's earnings growth over the past year (4%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: BK earnings growth over the past year (4%) underperformed the Capital Markets industry 79%.


Return on Equity

High ROE: BK's Return on Equity (8.7%) 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 (218%).

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 (15%).

Low Risk Deposits: BK's Loans to Deposits ratio (21%) 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


Upcoming Dividend Payment

TodayJan 24 2022Ex Dividend DateJan 28 2022Dividend Pay DateFeb 11 202214 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BK's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: BK's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 (31.2%), 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 (30.1% 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 (64 yo)

2.33yrs

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 ($USD9.39M) is about average for companies of similar size in the US market ($USD11.47M).

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 considered experienced (3.9 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.


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 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
  • Implied Market Cap: US$45.981b
  • Shares outstanding: 804.15m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:04
End of Day Share Price2022/01/21 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.