BNS.TO  Bank Of Nova Scotia

Exchange

TSX

Sector

Diversified Industries

Industry

Market Cap.

91.78B

Current Price

$75.91
+0.25 (+0.33%)

Book Price

$80.86
Undervalued by 6.52%
Financial Institution

Company Metrics

  • P/E 12.85
  • P/S 3.74
  • P/B 1.72
  • EPS 5.91
  • Dividend 2.24 / 3.97%
  • Avg. Vol. 2.95M
  • Shares 1.21B
  • Market Cap. 91.78B

Company Description

The Bank of Nova Scotia, together with its subsidiaries, offers various personal, commercial, corporate, and investment banking services in Canada and internationally. It has four segments: Canadian Banking, International Banking, Global Wealth Management, and Scotia Capital. The Canadian Banking segment includes retail and small business banking, which provides mortgages, loans, credit cards, inv... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why income investors should have The Bank of Nova Scotia (BNS) in their portfolio
Simply Wall St - 2 hours ago
If you are an income investor then The Bank of Nova Scotia (NYSE:BNS) should be on your radar. The Bank of Nova Scotia provides various personal, commercial, corporate, and investment banking services in Canada and internationally and has a market ...
Bank of Nova Scotia (BNS) Receives $67.20 Consensus Target Price from Analysts - The Cerbat Gem
Research Analysts Offer Predictions for Bank of Nova Scotia's Q2 2017 Earnings ... - Sports Perspectives
Taiwan's Cathay Financial units to buy Bank of Nova Scotia's Malaysian arm
BNN - May 26, 2017
Taiwan's Cathay Financial Holdings said its two subsidiaries have completed an agreement to acquire the Malaysia unit of The Bank of Nova Scotia BNS.TO 0.33% for $255 million. The subsidiaries, Cathay United Bank and Cathay Life, will split the stake ...
Bank Of Nova Scotia: 185 Years Of Consecutive Dividends And Counting
Seeking Alpha - May 16, 2017
Bank of Nova Scotia (NYSE:BNS) is the third largest of the Canadian banks by market cap. The company provides a diversified array of financial services operating via four segments: Canadian Banking, International Banking, Global Banking and Markets, ...
Bank Of Nova Scotia Buys iShares MSCI Emerging Index Fund, iShares MSCI Japan ... - GuruFocus.com
Are the Big Banks a Good Buy Before Earnings? - The Motley Fool Canada
Buy Bank of Nova Scotia for International Growth
The Motley Fool Canada - May 23, 2017
Canada's big banks are renowned for being great investment options over the long term. Strong results, steady growth, and ever-increasing dividends make an investment in the banks a sound plan for growth- and income-seeking investors. Bank of Nova ...
Bank of Nova Scotia, Richmont Mines, Raging River Exploration - Times of India
Barclays PLC Upgrades Bank of Nova Scotia (BNS) to "Overweight" - The Cerbat Gem
BRIEF-Taiwan's Cathay Financial units to acquire Malaysia's Bank of Nova ...
Reuters - May 26, 2017
LONDON, May 26 Emerging stocks inched to two-year highs on Friday, taking their cue from a strong Wall Street close, while China's yuan shrugged off a ratings downgrade from Moody's for its biggest weekly gain since early-December.
Scotiabank selling Malaysian unit to Cathay Financial
The Globe and Mail - May 26, 2017
Scotiabank has reached a deal to sell its Malaysian unit to Cathay Financial Holding Co Ltd. The Canadian bank indicated earlier this year that it was seeking a buyer for Bank of Nova Scotia Berhad. Reports on Friday said that it would get about ...
The story behind an alleged fraud worth millions in Nova Scotia's lobster industry
CBC.ca - May 23, 2017
Over two decades, Terry Banks has bought and sold tens of millions of dollars worth of lobster, often through a plant he operated on Highway 3 in the fishing village of Shag Harbour, N.S. He's exported to China, Hong Kong, Taiwan, France, Italy and Spain.
Bank Of Nova Scotia Trust Company Cut By $1.40 Million Its Deere & Co (DE ...
Key Gazette - 2 hours ago
Bank Of Nova Scotia Trust Company decreased Deere & Co (DE) stake by 85.1% reported in 2016Q4 SEC filing. Bank Of Nova Scotia Trust Company sold 13,705 shares as Deere & Co (DE)'s stock rose 9.64%. The Bank Of Nova Scotia Trust Company holds ...
Which of the Big 3 Banks Is the Best Value Today?
The Motley Fool Canada - May 1, 2017
This article will focus on the Big Three banks: Royal Bank of Canada (TSX:RY)(NYSE:RY), Toronto-Dominion Bank (TSX:TD)(NYSE:TD), and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). Since mid-February, these quality banks have dipped 5-6%. However ...
Truro golfer Eric Banks set for PGA Canada start
CBC.ca - May 22, 2017
Nova Scotia golfer Eric Banks had a large send-off at his home club Monday, with dozens of people turning out to wish the Truro native well as he starts his first season as a pro on the Mackenzie Tour-PGA Tour Canada.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BNS.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BNS.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

BNS.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

BNS.TO has only created $- of cash for every $100 invested.
Figures in CAD. Fiscal year ends in October
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 668.04B 743.79B 805.67B 856.50B 896.27B
Cash ROIC - - - - -

Satisfactory Return on Equity over the past 5 years

BNS.TO has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

BNS.TO has generated $14.21 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in October
20122013201420152016
Net Income 6.24B 6.42B 7.07B 7.01B 7.12B
divided by
Stockholders' Equity 39.64B 44.65B 47.90B 52.02B 56.25B
Return on Equity 15.75% 14.38% 14.76% 13.48% 12.65%

Poor Business Performance over the past 10 years

BNS.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

BNS.TO has been losing money for the majority of the past 10 years.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

BNS.TO has consistently retained profits. This may put BNS.TO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BNS.TO can greatly improve their long-term economic picture.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Retained Earnings 17.46B 18.55B 19.92B 21.93B 24.66B 21.98B 25.32B 28.61B 31.32B 34.75B
Retained Earnings Growth - 6.23% 7.37% 10.12% 12.45% -10.88% 15.18% 13.01% 9.46% 10.97%

Highly Competitive Industry over the past 10 years

It's likely that BNS.TO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely BNS.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Net Income 4.05B 3.14B 3.55B 4.24B 5.18B 6.24B 6.42B 7.07B 7.01B 7.12B
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

BNS.TO is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that BNS.TO has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

BNS.TO has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that BNS.TO may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 4.05B 3.14B 3.55B 4.24B 5.18B 6.24B 6.42B 7.07B 7.01B 7.12B
Capital Expenditure Ratio - - - - - - - - - -

Inconsistent Dividend History over the past 10 years

BNS.TO has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Dividend Paid 1.77B 2.00B 2.18B 2.22B - 2.87B 3.22B 3.34B - 3.60B
divided by
Shares Outstanding 997.00M 993.00M 1.02B 1.03B 1.07B 1.16B 1.21B 1.22B 1.23B 1.23B
Dividend Paid Per Share 1.76 2.00 2.13 2.13 - 2.46 2.64 2.71 - 2.91
Price at Year End 42.56 28.31 45.67 54.99 50.83 57.43 66.22 66.39 57.70 74.76
Dividend Yield 4.14% 7.07% 4.65% 3.88% - 4.28% 3.99% 4.09% - 3.90%

History of Stock Buybacks over the past 10 years

BNS.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CAD. Fiscal year ends in October
2007200820092010201120122013201420152016
Shares Outstanding 997.00M 993.00M 1.02B 1.03B 1.07B 1.16B 1.21B 1.22B 1.23B 1.23B
Stock Bought Back - 0.40% -2.26% -1.74% -3.72% -7.41% -4.05% -1.06% -0.81% 0.49%
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