The Bank of Nova Scotia (BNS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Toronto-Dominion Bank

Bank of Montreal

The Bank of Nova Scotia

Builders Capital Mortgage Corp.

Royal Bank of Canada

Laurentian Bank of Canada

National Bank of Canada

VersaBank

Canadian Western Bank

Why is The Bank of Nova Scotia ?

Positive results in Apr 25

NII(Q) Highest at CAD 5,270 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 71.74%
OPERATING PROFIT MARGIN(Q) Highest at 15.33 %

With ROA of 0.33%, it has a very attractive valuation with a 1.31 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 23.47%, its profits have fallen by -3.8%

High Institutional Holdings at 48.03%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.5% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to The Bank of Nova Scotia should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Bank of Nova Scotia for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

The Bank of Nova Scotia

-100.0%

2.65

15.31%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.40%

EBIT Growth (5y)

1.07%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

71.35%

Pledged Shares

Institutional Holding

48.03%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

48.19

EV to EBITDA

38.49

EV to Capital Employed

1.09

EV to Sales

5.54

PEG Ratio

Dividend Yield

ROCE (Latest)

2.27%

ROE (Latest)

8.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NII(Q)

Highest at CAD 5,270 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 71.74%

OPERATING PROFIT MARGIN(Q)

Highest at 15.33 %

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 1,730 MM

NET PROFIT(HY)

At CAD 3,123 MM has Grown at -26.34%

GROSS NPA (%)

NET SALES(Q)

Lowest at CAD 14,287 MM

Here's what is working for The Bank of Nova Scotia

NII

Highest at CAD 5,270 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA (%)

Operating Profit Margin

Highest at 15.33 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend Payout Ratio

Highest at 71.74%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

CASA

Highest at 15.4%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for The Bank of Nova Scotia

Non Performing Loans (%)

Highest at 0.84%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Net Profit

At CAD 3,123 MM has Grown at -26.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 1,730 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 14,287 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)