NYSE:BK

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

Fundamentals

Average dividend payer and fair value.


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


Market Performance


7 Day Return

1.2%

NYSE:BK

1.9%

US Capital Markets

0.8%

US Market


1 Year Return

-9.9%

NYSE:BK

-0.1%

US Capital Markets

1.9%

US Market

BK underperformed the Capital Markets industry which returned -0.3% over the past year.

BK underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

BKIndustryMarket
7 Day1.2%1.9%0.8%
30 Day9.5%6.0%3.4%
90 Day8.6%5.8%2.1%
1 Year-7.7%-9.9%2.1%-0.1%4.2%1.9%
3 Year22.4%15.4%58.3%49.4%46.7%37.2%
5 Year30.7%19.0%77.3%61.1%62.3%44.5%

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

Valuation

Is Bank of New York Mellon undervalued based on future cash flows and its price relative to the stock market?

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bank of New York Mellon's share price is below the future cash flow value, but not at a moderate discount (< 20%).

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


Price Based on Earnings

Bank of New York Mellon is good value based on earnings compared to the US Capital Markets industry average.

Bank of New York Mellon is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bank of New York Mellon earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Bank of New York Mellon is good value based on assets compared to the US Capital Markets industry average.


Next Steps

Future Growth

How is Bank of New York Mellon expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of New York Mellon's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Bank of New York Mellon's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Bank of New York Mellon's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Bank of New York Mellon's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Bank of New York Mellon's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Bank of New York Mellon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank of New York Mellon's year on year earnings growth rate has been positive over the past 5 years.

Bank of New York Mellon's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Bank of New York Mellon's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.


Return on Equity

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


Return on Assets

Bank of New York Mellon used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank of New York Mellon 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 New York Mellon's financial position?


Financial Position Analysis

Bank of New York Mellon's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Bank of New York Mellon's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bank of New York Mellon's level of debt (172.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (137.6% vs 172.9% today).

Debt is not well covered by operating cash flow (2.6%, less than 20% of total debt).

Unable to confirm if the interest payments on Bank of New York Mellon's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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

2.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of New York Mellon's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Bank of New York Mellon's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of Bank of New York Mellon's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Charlie Scharf (54yo)

2.2yrs

Tenure

US$9,383,885

Compensation

Mr. Charles W. Scharf, also known as Charlie, has been Chief Executive Officer and Director of The Bank of New York Mellon Corporation since July 17, 2017 and has been its Chairman since January 1, 2018. H ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.2yrs

Average Tenure

58yo

Average Age

The tenure for the Bank of New York Mellon management team is about average.


Board Age and Tenure

3.2yrs

Average Tenure

61.5yo

Average Age

The tenure for the Bank of New York Mellon board of directors is about average.


Insider Trading

More shares have been bought than sold by Bank of New York Mellon individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$509,92122 Jul 19
William Daley
EntityIndividual
Shares11,350
Max PriceUS$44.93
SellUS$31,157,37706 May 19
Trian Fund Management, L.P.
EntityCompany
Shares621,807
Max PriceUS$50.12
SellUS$1,235,73002 May 19
Jane McCarthy
EntityIndividual
Shares25,000
Max PriceUS$49.43
SellUS$41,262,28413 Mar 19
Trian Fund Management, L.P.
EntityCompany
Shares792,000
Max PriceUS$52.28
SellUS$307,25805 Mar 19
Kurtis Kurimsky
EntityIndividual
Shares5,797
Max PriceUS$53.00
SellUS$247,67520 Feb 19
Charles Scharf
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,674
Max PriceUS$52.99
SellUS$1,201,28320 Feb 19
Bridget Engle
EntityIndividual
Role
Chief Information Officer
Senior Executive VP & Chief Information Officer
Shares22,670
Max PriceUS$52.99
SellUS$112,681,92929 Jan 19
Trian Fund Management, L.P.
EntityCompany
Shares2,107,000
Max PriceUS$53.64

Ownership Breakdown


Management Team

  • Charlie Scharf (54yo)

    Chairman & CEO

    • Tenure: 2.2yrs
    • Compensation: US$9.38m
  • Brian Ruane

    CEO of BNY Mellon Government Securities Services Corp. and Clearance & Collateral Management

    • Tenure: 2.3yrs
  • Mitchell Harris (64yo)

    Senior EVP & CEO of Investment Management

    • Tenure: 8.3yrs
    • Compensation: US$8.88m
  • Mark Musi

    Chief Compliance & Ethics Officer

    • Tenure: 0yrs
  • Todd Gibbons (62yo)

    Vice Chairman and CEO of Clearing

    • Tenure: 12.7yrs
    • Compensation: US$7.45m
  • O'Connor Engle (55yo)

    Senior Executive VP & Chief Information Officer

    • Tenure: 2.3yrs
    • Compensation: US$5.58m
  • Mike Santomassimo (44yo)

    Senior EVP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$2.61m
  • Lester Owens (61yo)

    Senior EVP & Head of Operations

    • Tenure: 0.6yrs
  • Sabet Elias

    Chief Technology Officer

    • Tenure: 0.9yrs
  • Magda Palczynska

    Global Head of Investor Relations

    • Tenure: 0.5yrs

Board Members

  • Steve Black (67yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$212.46k
  • Charlie Scharf (54yo)

    Chairman & CEO

    • Tenure: 2.2yrs
    • Compensation: US$9.38m
  • Ted Kelly (73yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$279.96k
  • Sam Scott (75yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$270.79k
  • Jeffrey Goldstein (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$269.96k
  • Linda Cook (61yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$249.96k
  • John Hinshaw (49yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$269.96k
  • Liz Robinson (50yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$374.96k
  • Joe Echevarria (62yo)

    Lead Director

    • Tenure: 3.4yrs
    • Compensation: US$329.96k
  • Jennifer Morgan (48yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$249.96k

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$43.692b
  • Shares outstanding: 942.66m
  • 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
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 compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:57
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.