NYSE:BK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

-1.7%

BK

0.7%

US Capital Markets

1.0%

US Market


1 Year Return

-23.7%

BK

2.7%

US Capital Markets

13.6%

US Market

Return vs Industry: BK underperformed the US Capital Markets industry which returned 2.7% over the past year.

Return vs Market: BK underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

BKIndustryMarket
7 Day-1.7%0.7%1.0%
30 Day-1.3%-2.8%-0.4%
90 Day-9.8%0.04%8.9%
1 Year-21.3%-23.7%5.3%2.7%16.2%13.6%
3 Year-27.3%-32.4%22.4%12.9%40.2%30.8%
5 Year-0.4%-10.6%71.9%49.6%89.6%68.2%

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 compared to its fair value and its price relative to the market?

7.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BK ($35.4) is trading above our estimate of fair value ($28.23)

Significantly Below Fair Value: BK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BK is good value based on its PE Ratio (7.6x) compared to the US Capital Markets industry average (22.8x).

PE vs Market: BK is good value based on its PE Ratio (7.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BK is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (4.3x).


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 14 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BK's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: BK's earnings are forecast to decline over the next 3 years (-2.2% per year).

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

Revenue vs Market: BK's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: BK's revenue is forecast to decline over the next 3 years (-0.7% 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 (8.4%).


Next Steps

Past Performance

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

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BK has high quality earnings.

Growing Profit Margin: BK's current net profit margins (25.7%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: BK's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: BK's earnings growth over the past year (12.2%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: BK earnings growth over the past year (12.2%) exceeded the Capital Markets industry 8.2%.


Return on Equity

High ROE: BK's Return on Equity (10%) is considered low.


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


Financial Institutions Analysis

Asset Level: BK's Assets to Equity ratio (10.1x) is moderate.

Allowance for Bad Loans: BK has a sufficient allowance for bad loans (351%).

Low Risk Liabilities: 77% 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 (12%).

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%).


Next Steps

Dividend

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

3.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BK's dividend (3.5%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: BK's dividend (3.5%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 (26.6%), 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 (41.9% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Todd Gibbons (63 yo)

1

Tenure

US$12,525,701

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 ($USD12.53M) is about average for companies of similar size in the US market ($USD11.31M).

Compensation vs Earnings: Todd's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gibbons
CEO & Director1yrUS$12.53m0.041%
$ 12.7m
Bridget Engle
Senior EVP & Chief Information Officer3.25yrsUS$4.73m0.0014%
$ 432.8k
Mitchell Harris
Chief Executive Officer of Investment Management9.33yrsUS$7.40m0.0092%
$ 2.9m
Robin Vince
Vice Chairman & CEO of Global Market Infrastructure0.67yrno datano data
Emily Portney
Chief Financial Officer0.17yrno data0.0083%
$ 2.6m
Ann Fogarty
MD & Head of Operations0.33yrno datano data
James Wiener
Senior EVP0.33yrno data0.0078%
$ 2.4m
Sabet Elias
Chief Technology Officer1.92yrsno datano data
Magda Palczynska
Global Head of Investor Relations1.5yrsno datano data
Mark Musi
Chief Compliance & Ethics Officerno datano datano data
Jane McCarthy
Senior EVP & General Counsel6.42yrsno data0.0081%
$ 2.5m
Eva Radtke
Global Head of Corporate Communications3.42yrsno datano data

1.5yrs

Average Tenure

55.5yo

Average Age

Experienced Management: BK's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Gibbons
CEO & Director1yrUS$12.53m0.041%
$ 12.7m
Robin Vince
Vice Chairman & CEO of Global Market Infrastructure0.67yrno datano data
Edmund Kelly
Independent Director13.17yrsUS$305.00k0.00050%
$ 156.8k
Frederick Terrell
Independent Director0.42yrno datano data
Samuel Scott
Independent Director13.17yrsUS$295.97k0.00045%
$ 141.1k
Alfred Zollar
Independent Director1.42yrsUS$210.00kno data
Jeffrey Goldstein
Independent Director6.42yrsUS$295.00k0%
$ 0
Ralph Izzo
Independent Director0.083yrno datano data
Linda Cook
Independent Director3.75yrsUS$275.00k0%
$ 0
Elizabeth Beshel Robinson
Independent Director3.92yrsUS$431.25k0%
$ 0
Joseph Echevarria
Independent Chairman of the Board1yrUS$355.00k0%
$ 0
Jennifer Morgan
Independent Director3.75yrsUS$275.00k0%
$ 0

2.6yrs

Average Tenure

63yo

Average Age

Experienced Board: BK's board of directors are not considered experienced ( 2.6 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$31.360b
  • Shares outstanding: 885.86m
  • 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
BKBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 0.5 COM STK USD0.01ARARSApr 2002
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 in the United States and internationally. The company operates through two segments, Investment Management and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 05:49
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.