Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.51% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 96.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.10% is above that of the industry average.
- Net operating cash flow has significantly increased by 153.51% to $899.00 million when compared to the same quarter last year. In addition, BANK OF NEW YORK MELLON CORP has also vastly surpassed the industry average cash flow growth rate of -308.25%.
- BANK OF NEW YORK MELLON CORP has improved earnings per share by 15.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF NEW YORK MELLON CORP reported lower earnings of $2.04 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $2.04).
The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. Bank of New York Mellon has a market cap of $28.09 billion and is part of the financial sector and financial services industry. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 20.7% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.
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