The Bank of New York Mellon Corporation Fundamental Analysis (NYSE: BK)
The Bank of New York Mellon Corporation Fundamental Analysis (NYSE: BK)
The Bank of New York Mellon Corporation (NYSE: BK) shows moderate financial fundamentals with a PE ratio of 21.02, profit margin of 16.33%, and ROE of 11.39%. The company generates $30.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ExcellentBK maintains a strong and stable balance sheet.
Profitability Score
ModerateBK maintains healthy but balanced margins.
Key Financial Metrics
Is BK Expensive or Cheap?
P/E Ratio
BK trades at 21.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BK's PEG of -5.89 indicates potential undervaluation.
Price to Book
The market values The Bank of New York Mellon Corporation at 2.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.30 times EBITDA. This is generally considered low.
How Well Does BK Make Money?
Net Profit Margin
For every $100 in sales, The Bank of New York Mellon Corporation keeps $16.33 as profit after all expenses.
Operating Margin
Core operations generate 19.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.39 in profit for every $100 of shareholder equity.
ROA
The Bank of New York Mellon Corporation generates $0.96 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 produces operating cash flow of $3.53B, showing steady but balanced cash generation.
Free Cash Flow
The Bank of New York Mellon Corporation produces free cash flow of $1.57B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.29 in free cash annually.
FCF Yield
BK converts 1.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
40.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How BK Stacks Against Its Sector Peers
| Metric | BK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.02 | 20.33 | Neutral |
| ROE | 11.39% | 633.00% | Weak |
| Net Margin | 16.33% | -432.00% (disorted) | Strong |
| Debt/Equity | 0.79 | 0.83 | Neutral |
| Current Ratio | 40.62 | 820.97 | Strong Liquidity |
| ROA | 0.96% | 81.00% | Weak |
BK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical