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The Bank of Nova Scotia

  • Market Cap: Large Cap
  • Industry: Regional Banks
  • ISIN: CA0641491075
  • TSE: BNS
CAD
132.24
-1.63 (-1.22%)

Sep 22

TSE

 View all stocks in this country
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Builders Capital Mortgage Corp.
National Bank of Canada
VersaBank
Royal Bank of Canada
The Toronto-Dominion Bank
The Bank of Nova Scotia
Bank of Montreal
Canadian Western Bank
Laurentian Bank of Canada

Why is The Bank of Nova Scotia ?

1
Positive results in Apr 26
  • OPERATING CASH FLOW(Y) Highest at CAD 17,970 MM
  • ROCE(HY) Highest at 0.65%
  • DIVIDEND PER SHARE(HY) Highest at CAD 0
2
With ROA of 0.41%, it has a very attractive valuation with a 1.72 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 62.08%, its profits have risen by 43.4% ; the PEG ratio of the company is 0.4
3
High Institutional Holdings at 49.9%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Market Beating performance in long term as well as near term
  • Along with generating 62.08% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to The Bank of Nova Scotia should be less than 10%
  2. 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
48.48%
5.84
16.64%
S&P/TSX 60
20.36%
2.51
12.02%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
15.77%
EBIT Growth (5y)
4.09%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
74.01%
Pledged Shares
0
Institutional Holding
49.54%
ROCE (avg)
0
ROE (avg)
0
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.72
EV to EBIT
42.82
EV to EBITDA
36.84
EV to Capital Employed
1.17
EV to Sales
7.73
PEG Ratio
0.36
Dividend Yield
NA
ROCE (Latest)
2.74%
ROE (Latest)
10.93%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

16What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CAD 23,206 MM

ROCE(HY)

Highest at 0.68%

NII(Q)

Highest at CAD 5,866 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 0

OPERATING PROFIT(Q)

Highest at CAD 3,399 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.23 %

PRE-TAX PROFIT(Q)

Highest at CAD 3,678 MM

NET PROFIT(Q)

Highest at CAD 2,908 MM

EPS(Q)

Highest at CAD 2.27

-6What is not working for the Company
GROSS NPA (%)

(Q

ROCE(HY)

Lowest at 0.68%

CREDIT DEPOSIT RATIO(HY)

Lowest at 85.86%

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

Operating Cash Flow
Highest at CAD 23,206 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

NII
Highest at CAD 5,866 MM
in the last five periods
MOJO Watch
The bank's income from core business is increasing

NII (CAD MM)

Operating Profit
Highest at CAD 3,399 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin
Highest at 24.23 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at CAD 3,678 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit
Highest at CAD 2,908 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS
Highest at CAD 2.27
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Dividend per share
Highest at CAD 0
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CAD)

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

Non Performing Loans (%)
Highest at 0.94% and Grown
In each half year in the last four Semi-Annual periods
MOJO Watch
Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Credit Deposit Ratio
Lowest at 85.86%
in the last four Semi-Annual periods
MOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)

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