The Bank of New York Mellon Corporation
The Bank of New York Mellon Corporation Fundamental Analysis
The Bank of New York Mellon Corporation (BK) shows moderate financial fundamentals with a PE ratio of 15.80, profit margin of 14.66%, and ROE of 13.48%. The company generates $40.4B in annual revenue with weak year-over-year growth of 2.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BK's fundamental strength across five key dimensions:
Efficiency Score
WeakBK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBK trades at attractive valuation levels.
Growth Score
ModerateBK shows steady but slowing expansion.
Financial Health Score
WeakBK carries high financial risk with limited liquidity.
Profitability Score
WeakBK struggles to sustain strong margins.
Key Financial Metrics
Is BK Expensive or Cheap?
P/E Ratio
BK trades at 15.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BK's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values The Bank of New York Mellon Corporation at 2.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 25.38 times EBITDA. This signals the market has high growth expectations.
How Well Does BK Make Money?
Net Profit Margin
For every $100 in sales, The Bank of New York Mellon Corporation keeps $14.66 as profit after all expenses.
Operating Margin
Core operations generate 18.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.48 in profit for every $100 of shareholder equity.
ROA
The Bank of New York Mellon Corporation generates $1.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Bank of New York Mellon Corporation generates limited operating cash flow of $3.28B, signaling weaker underlying cash strength.
Free Cash Flow
The Bank of New York Mellon Corporation produces free cash flow of $1.44B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.11 in free cash annually.
FCF Yield
BK converts 1.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BK Stacks Against Its Sector Peers
| Metric | BK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.80 | 18.91 | Better (Cheaper) |
| ROE | 13.48% | 822.00% | Weak |
| Net Margin | 14.66% | 1869.00% | Weak |
| Debt/Equity | 1.19 | 0.98 | Weak (High Leverage) |
| Current Ratio | 0.57 | 622.52 | Weak Liquidity |
| ROA | 1.06% | -23439.00% (disorted) | Weak |
BK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Bank of New York Mellon Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
207.88%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
93.93%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
68.86%
Industry Style: Value, Dividend, Cyclical
High Growth