BNS The Bank of Nova Scotia - Fundamental Analysis
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BNS Stock | Fundamental Analysis & Investment Insights
NYSE
Financial Services
Banks - Diversified
Current Price
Live
$74.87
Analyst Target
$70.4
-6.0%
Downside
52W High
$74.97
52W Low
$44.09
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$93.29B
P/E
18.17
ROE
9.0%
Profit margin
24.6%
Debt/Equity
N/A
Dividend yield
4.28%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
The Bank of Nova Scotia (BNS) exhibits a weak financial health profile with a Piotroski F-Score of 2/9, signaling significant concerns in profitability, leverage, and operating efficiency. Despite this, the stock shows strong recent earnings growth (YoY EPS +58.2%) and a robust dividend yield of 4.28%, supported by a high but sustainable payout ratio. Valuation metrics suggest the stock is trading slightly above analyst targets ($74.87 vs. $70.40) and above the Graham Number of $68.74, though below the growth-based intrinsic value of $121.54. Technical indicators are bearish (10/100), and insider sentiment is neutral, reflecting limited conviction despite solid dividend strength.
Key Strengths
High dividend yield of 4.28% provides strong income appeal
Recent earnings growth is robust, with YoY EPS up 58.2%
Profit margin of 24.62% and operating margin of 39.18% indicate strong profitability
Trading below growth-based intrinsic value estimate of $121.54
Analyst target price implies limited downside risk at $70.40
Key Risks
Very low Piotroski F-Score of 2/9 indicates weak financial health
Revenue growth is negative YoY (-0.80%), suggesting top-line stagnation
ROA of only 0.54% reflects poor asset efficiency for a bank
Technical trend score of 10/100 signals strong bearish momentum
Missing key financial data (Debt/Equity, Altman Z-Score, cash/debt) limits risk assessment
AI Fair Value Estimate
Based on comprehensive analysis
$72.5
-3.2% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
58
Moderate
60
70
55
30
75
AI Verdict
Neutral with upside potential if financial health improves
Key drivers: Strong dividend and earnings growth, Weak Piotroski score and technical trend, Valuation near fair value range
Confidence
65%
Value
60/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 11.47 is below current P/E of 18.17
- Trading below growth-based intrinsic value
Watchpoints
- Current P/E of 18.17 is above forward P/E, suggesting earnings expectations are cooling
- Price above Graham Number ($74.87 vs $68.74)
Future
70/100
Ref Growth rates
Positives
- Strong YoY earnings growth of 35.40%
- Q/Q EPS growth of 4.9% shows continued momentum
Watchpoints
- Revenue growth is negative YoY (-0.80%)
- PEG Ratio unavailable, limiting growth-adjusted valuation
Past
55/100
Ref Historical trends
Positives
- 5-Year price return of +76.6% shows strong long-term performance
- History of consistent dividend payments
Watchpoints
- Earnings surprises are volatile, with two large negative misses in 2024
- Recent quarters show declining trend in beat frequency
Health
30/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Profit margins remain strong
Watchpoints
- Piotroski F-Score of 2/9 indicates severe financial weakness
- ROA of 0.54% is very low for a bank
- Missing Altman Z-Score and debt/equity data raises transparency concerns
Dividend
75/100
Ref Yield, Payout
Positives
- Dividend yield of 4.28% is attractive in current market
- Dividend strength score of 55/100 indicates moderate reliability
- Payout ratio of 76.19% is high but not unsustainable
Watchpoints
- No data on 5-year average yield to assess consistency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$74.87
Analyst Target
$70.4
Upside/Downside
-6.0%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for BNS and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
BNS
The Bank of Nova Scotia
Primary
|
+76.6% | +68.7% | +49.2% | +32.2% | +1.1% | +1.9% |
|
BCS
Barclays PLC
Peer
|
+313.1% | +229.8% | +82.1% | +34.6% | +2.2% | +0.1% |
|
MMC
Marsh & McLennan Companies, Inc.
Peer
|
+70.2% | +16.8% | -16.1% | -20.3% | -10.3% | +1.5% |
|
HOOD
Robinhood Markets, Inc.
Peer
|
+212.3% | +1042.2% | +136.0% | -0.9% | -6.1% | -5.7% |
|
PNC
The PNC Financial Services Group, Inc.
Peer
|
+70.2% | +54.3% | +16.8% | +14.6% | +6.1% | +2.6% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
18.17
Forward P/E
11.47
PEG Ratio
N/A
P/B Ratio
1.47
P/S Ratio
2.95
EV/Revenue
-2.01
EV/EBITDA
N/A
Market Cap
$93.29B
Profitability
Profit margins and return metrics
Profit Margin
24.62%
Operating Margin
39.18%
Gross Margin
N/A
ROE
8.99%
ROA
0.54%
Growth
Revenue and earnings growth rates
Revenue Growth
-0.8%
Earnings Growth
+35.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+35.1%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
N/A
Quick Ratio
N/A
Cash/Share
$372.95
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-24
$N/A
2025-12-02
$1.93
+4.7% surprise
2025-08-26
$1.84
+6.7% surprise
2025-05-27
$1.52
-3.0% surprise
Financial Services Sector Comparison
Comparing BNS against 208 companies in the Financial Services sector
(5 bullish, 111 neutral, 92 bearish)
P/E Ratio
18.17
This Stock
vs
30.37
Sector Avg
-40.2%
(Discount)
Return on Equity (ROE)
8.99%
This Stock
vs
-7.62%
Sector Avg
-217.9%
(Below Avg)
Profit Margin
24.62%
This Stock
vs
82.75%
Sector Avg
-70.3%
(Weaker)
Revenue Growth
-0.8%
This Stock
vs
28.35%
Sector Avg
-102.8%
(Slower)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BNS
The Bank of Nova Scotia
|
NEUTRAL | $93.29B | 18.17 | 9.0% | 24.6% | $74.87 | |
|
BCS
Barclays PLC
|
BEARISH | $90.49B | 12.02 | 9.4% | 26.6% | $26.2 | |
|
MMC
Marsh & McLennan Companies, Inc.
|
NEUTRAL | $90.07B | 21.92 | 28.7% | 15.6% | $182.81 | |
|
HOOD
Robinhood Markets, Inc.
|
NEUTRAL | $97.78B | 45.5 | 27.8% | 52.2% | $108.74 | |
|
PNC
The PNC Financial Services...
|
NEUTRAL | $87.7B | 14.42 | 11.5% | 29.9% | $223.18 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-31 | Bank of Nova Scotia, The | Issuer | Stock Award | 2,300,800 | - |
| 2025-12-30 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,704,050 |
| 2025-12-29 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,702,100 |
| 2025-12-24 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,710,150 |
| 2025-12-23 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,688,800 |
| 2025-12-22 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,648,950 |
| 2025-12-19 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,627,350 |
| 2025-12-18 | Bank of Nova Scotia, The | Issuer | Purchase | 100,800 | $7,260,019 |
| 2025-12-17 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,587,650 |
| 2025-12-16 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,647,000 |
| 2025-12-15 | Bank of Nova Scotia, The | Issuer | Purchase | 50,000 | $3,652,300 |
| 2025-12-15 | Walsh (Julie) | Senior Officer of Issuer | Option Exercise | 3,716 | $220,853 |
| 2025-12-15 | Walsh (Julie) | Senior Officer of Issuer | Disposition in the public market at price 73.10 pe | 3,716 | $271,632 |
| 2025-12-15 | Walsh (Julie) | Senior Officer of Issuer | Option Exercise | 2,767 | $145,295 |
| 2025-12-15 | Walsh (Julie) | Senior Officer of Issuer | Disposition in the public market at price 73.10 pe | 2,767 | $202,262 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
NONE
3 analysts
RBC Capital
2025-12-03
Sector Perform
Sector Perform
RBC Capital
2025-08-27
Sector Perform
Sector Perform
Past News Coverage
Recent headlines mentioning BNS from our newsroom.
Newest → oldest
No matching news yet.