Bank of New York Mellon Corp Fundamental Analysis
Bank of New York Mellon Corp Fundamental Analysis
Bank of New York Mellon Corp (BNY) shows moderate financial fundamentals with a PE ratio of 17.69, profit margin of 14.66%, and ROE of 13.48%. The company generates $40.4B 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 48.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BNY's fundamental strength across five key dimensions:
Efficiency Score
WeakBNY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBNY trades at attractive valuation levels.
Growth Score
ModerateBNY shows steady but slowing expansion.
Financial Health Score
WeakBNY carries high financial risk with limited liquidity.
Profitability Score
WeakBNY struggles to sustain strong margins.
Key Financial Metrics
Is BNY Expensive or Cheap?
P/E Ratio
BNY trades at 17.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BNY's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Bank of New York Mellon Corp at 2.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 25.44 times EBITDA. This signals the market has high growth expectations.
How Well Does BNY Make Money?
Net Profit Margin
For every $100 in sales, Bank of New York Mellon Corp 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
Bank of New York Mellon Corp generates $1.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bank of New York Mellon Corp generates limited operating cash flow of $3.28B, signaling weaker underlying cash strength.
Free Cash Flow
Bank of New York Mellon Corp 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
BNY converts 1.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
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 BNY Stacks Against Its Sector Peers
| Metric | BNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.69 | 21.34 | Better (Cheaper) |
| ROE | 13.48% | 637.00% | Weak |
| Net Margin | 14.66% | -905.00% (disorted) | Strong |
| Debt/Equity | 1.19 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 0.57 | 918.85 | Weak Liquidity |
| ROA | 1.06% | -852.00% (disorted) | Weak |
BNY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bank of New York Mellon Corp'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