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Bank of New York Mellon Corp
BK : NYSE : Financial
$41.18 0.07 | 0.17%
Today's Range: 41.12 - 41.25
Avg. Daily Volume: 4,920,700
12/19/14 - 9:50 AM ET

Financial Analysis


BANK OF NEW YORK MELLON CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.03% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)3863.03866.0
EBITDA ($mil)2083.02033.0
EBIT ($mil)1753.01688.0
Net Income ($mil)1083.0975.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)146443.0153404.0
Total Assets ($mil)386296.0371952.0
Total Debt ($mil)32122.031321.0
Equity ($mil)38451.036959.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin98.2197.8
EBITDA Margin53.9252.58
Operating Margin45.3843.66
Sales Turnover0.040.04
Return on Assets0.740.59
Return on Equity7.275.81
Debt Q3 FY14 Q3 FY13
Current Ratio0.00.0
Debt/Capital0.460.46
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)1125.711148.52
Div / share0.170.15
EPS0.930.82
Book value / share34.1632.18
Institutional Own % n/a n/a
Avg Daily Volume5027539.05898041.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.66 for the Capital Markets industry and a discount compared to the S&P 500 average of 19.74. Conducting a second comparison, its price-to-book ratio of 1.19 indicates a significant discount versus the S&P 500 average of 2.73 and a discount versus the industry average of 2.10. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, BANK OF NEW YORK MELLON CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BK 16.75 Peers 22.66   BK 16.78 Peers 11.86

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BK is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BK is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BK 15.24 Peers 17.27   BK NA Peers 1.66

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BK is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BK 1.19 Peers 2.10   BK 32.24 Peers 151.71

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BK is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BK is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BK 3.02 Peers 3.52   BK -2.08 Peers 5.43

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BK is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BK significantly trails its peers on the basis of sales growth

 

 

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