BNS.TO  Bank Of Nova Scotia

Exchange

TSX

Sector

Diversified Industries

Industry

Market Cap.

97.00B

Current Price

$80.95
+0.03 (+0.04%)

Book Price

$80.86
Fairly valued
Financial Institution

Company Metrics

  • P/E 12.62
  • P/S 3.90
  • P/B 1.82
  • EPS 6.42
  • Dividend 2.53 / 4.04 %
  • Avg. Vol. 1.73M
  • Shares 1.20B
  • Market Cap. 97.00B

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 Bank of Nova Scotia is the 'most attractive' Big 6 investment
The Globe and Mail - Oct 17, 2017
In this report, we focus on Canadian banks' P/E valuation analysis relative to the S&P/TSX Composite, bank stock one-year return analysis under different P/E (NTM) multiple ranges, and looking at implied P/E taking into consideration each bank's excess ...
Scotiabank And Dividend Growth Investing
Seeking Alpha - Sep 25, 2017
One of the companies that I bought in those early days was the Bank of Nova Scotia (NYSE:BNS), AKA Scotiabank. The company was an especially good buy at the time because of a growing gap between the dollar and the Canadian dollar.
Diversify Your International Portfolio With Bank of Nova Scotia - The Motley Fool Canada
Bank of Nova Scotia (The) (BNS) Position Trimmed by NorthCoast Asset ... - The Ledger Gazette
Bank of Nova Scotia (BNS) Ex-Dividend Date Scheduled for October 02, 2017
Nasdaq - Sep 29, 2017
Bank of Nova Scotia ( BNS ) will begin trading ex-dividend on October 02, 2017. A cash dividend payment of $0.631 per share is scheduled to be paid on October 27, 2017.
Should You Buy Bank of Nova Scotia for Your Retirement Fund? - The Motley Fool Canada
Bank Of Nova Scotia (BNS) Holder Pcj Investment Counsel LTD Has Trimmed Its ... - WeeklyHub
Scotiabank puts gold business up for sale: Report
BNN - Oct 18, 2017
Bank of Nova Scotia (BNS.TO 0.04%) has put its gold business up for sale in the aftermath of a massive money laundering scandal centered on a U.S.
Scotiabank said to be mulling sale of the world's oldest gold trader - Financial Post
Scotiabank to offload gold trading unit - MINING.com
Is It Too Late To Buy The Bank of Nova Scotia (TSX:BNS)?
Simply Wall St - Oct 18, 2017
Let's talk about the popular The Bank of Nova Scotia (TSX:BNS). The company's shares saw its share price hover around a small range of $76 to $81 over the last few weeks.
Bank of Nova Scotia (The) (BNS) versus BankFinancial Corporation (BFIN ... - The Ledger Gazette
Bank of Nova Scotia (BNS.TO) Share Activity Climbing in Session - Stock Rover
Why You Shouldn't Bet Against Bank of Nova Scotia (BNS) Stock September 26, 2017
Zacks.com - Sep 26, 2017
One stock that might be an intriguing choice for investors right now is Bank of Nova Scotia (The) (BNS - Free Report) . This is because this security in the Banks - Foreign space is seeing solid earnings estimate revision activity, and is in great ...
Critics question settlement program for banks that overcharged fees
CBC.ca - Oct 18, 2017
As investors await refunds from banks and other financial institutions for hundreds of millions of dollars in excess fees and unpaid interest, critics are questioning the process around how the unwarranted charges were dealt with by their regulator ...
Bank of Nova Scotia Is Selling TMX Group Limited: Should You?
The Motley Fool Canada - Oct 10, 2017
Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) announced October 2 that it was selling 2.75 million shares of TMX Group Limited (TSX:X) for $67 per share, leaving it with less than 5% of the TSX's common stock.
Bank of Nova Scotia lands novel AT1
Times of India - Oct 4, 2017
(Updates throughout). By Natalie Harrison. NEW YORK, Oct 4 (IFR) - Bank of Nova Scotia saw strong investor demand on Wednesday for an Additional Tier 1 bond, the first offshore deal of its kind out of Canada, which could pave the way for similar deals.
What Really Matters in the Long Run? – The Bank of Nova Scotia (BNS), BT Group ... - Post Analyst
Bank Nova Scotia Halifax Pfd 3 (NYSE:BNS) Sees Significantly Lower Trading Volume - First News 24
Montrusco Bolton Investments Inc. Purchases 108128 Shares of Bank of Nova ...
The Ledger Gazette - 15 hours ago
Bank of Nova Scotia (The) logo Montrusco Bolton Investments Inc. increased its position in shares of Bank of Nova Scotia (The) (NYSE:BNS) (TSE:BNS) by 4.2% during the third quarter, according to its most recent filing with the Securities & Exchange ...
Needle Action Activity Spotted in Bank of Nova Scotia (BNS) - Sheridan Daily
Assessing the stock market for: The Bank of Nova Scotia (BNS) - The News Journal
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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