Bank Of Nova Scotia (NYSE: BNS)

Sector: Financial Services Industry: Banks - Diversified CIK: 0000009631
Market Cap 95.05 Bn
P/B 1.53
P/E 18.27
P/S 3.53
ROIC (Qtr) 4.03
Div Yield % 2.99
Rev 1y % (Qtr) 13.34
Total Debt (Qtr) 140.72 Bn
Debt/Equity (Qtr) 2.27
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1031.34B provides 7.33x coverage of total debt 140.72B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 3.86B provides strong 360.47x coverage of stock compensation 10.71M, indicating sustainable incentive practices.
  • Robust free cash flow of 3.61B exceeds capital expenditure of 247.86M by 14.58x, indicating strong organic growth funding capability.
  • Retained earnings of 42.08B represent substantial 0.68x of equity 62.05B, indicating strong internal capital generation.
  • Strong tangible asset base of 1031.34B provides 89.30x coverage of intangibles 11.55B, indicating robust asset quality.

Bear case

  • Operating cash flow of 3.86B provides thin coverage of dividend payments of (4.20B) with a -0.92 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 192.12B provide limited coverage of acquisition spending of (1.88B), which is -102x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 3.86B provides minimal 1.97x coverage of tax expenses of 1.97B, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 3.61B represents just -9.23x of debt issuance (391.43M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 3.86B shows concerning coverage of minority interest expenses of (22.14M), which is -174.42x, suggesting complex corporate structure risks.

Geographical areas [axis] Breakdown of Revenue (2025)

Geographical areas [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Banks - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 JPM Jpmorgan Chase & Co 1,043.32 Bn 33.97 9.59 942.38 Bn
2 BAC Bank Of America Corp /De/ 532.79 Bn 28.35 6.13 708.27 Bn
3 WFC Wells Fargo & Company/Mn 446.49 Bn 124.86 10.43 408.42 Bn
4 C Citigroup Inc 376.35 Bn 51.48 4.87 720.33 Bn
5 RY Royal Bank Of Canada 244.65 Bn 16.82 5.14 9.97 Bn
6 TD Toronto Dominion Bank 165.03 Bn 11.57 3.41 7.67 Bn
7 BK Bank of New York Mellon Corp 143.13 Bn 63.87 9.95 51.52 Bn
8 BMO Bank Of Montreal /Can/ 107.49 Bn 17.28 4.15 179.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.04 0.22
EV to Cash from Ops. EV/CFO 9.79 241.80
EV to Debt EV to Debt 0.27 2.53
EV to EBIT EV/EBIT 5.02 33.73
EV to EBITDA EV/EBITDA 4.37 25.98
EV to Free Cash Flow [EV/FCF] EV/FCF 10.47 245.05
EV to Market Cap EV to Market Cap 0.40 1.98
EV to Revenue EV/Rev 1.40 9.02
Price to Book Value [P/B] P/B 1.53 3.87
Price to Earnings [P/E] P/E 18.27 33.57
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.82 2.37
Dividend Payout Ratio % Div Payout % (Qtr) 54.70 29.28
Dividend per Basic Share Div per Share (Qtr) 2.28 2.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 56.05 15.72
Interest Coverage Interest Coverage 0.00 0.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 30.05 -5.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.28 -8.06
Dividend Growth (1y) % Div 1y % (Qtr) -42.64 -10.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.03 32.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.19 22.90
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.12 30.58
EBT Growth (1y) % EBT 1y % (Qtr) 6.12 30.58
EPS Growth (1y) % EPS 1y % (Qtr) -3.09 38.83
FCF Growth (1y) % FCF 1y % (Qtr) -67.11 235.05
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.49 9.67
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.03
Cash Payout Ratio Cash Payout (Qtr) 1.12 0.17
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 2.27 3.24
Interest Cover Ratio Interest Cover Ratio 0.00 0.00
Times Interest Earned Times Interest Earned 0.00 0.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 32.20 38.15
EBIT Margin % EBIT Margin % (Qtr) 39.10 38.03
EBT Margin % EBT Margin % (Qtr) 27.93 33.01
Gross Margin % Gross Margin % (Qtr) 100.00 98.96
Net Profit Margin % Net Margin % (Qtr) 19.30 26.44