Fact based stock research
Bank of Nova Scotia (TSX:BNS)

CA0641491075

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Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Bank of Nova Scotia stock research in summary

scotiabank.com


ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Bank of Nova Scotia (Diversified Banks, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of Bank of Nova Scotia are a good value (attractively priced) with a consolidated Value Rank of 84 (better than 84% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 19), which means above-average debt burdens. ...read more


RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on Bank of Nova Scotia's financial characteristics. As the company Bank of Nova Scotia's key financial metrics exhibit good value (Obermatt Value Rank of 84) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 19), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 84% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more


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Country Canada
Industry Diversified Banks
Index Human Rights, Renewables Users, TSX Composite
Size class XX-Large

4-Jul-2024. Stock data may be delayed. Log in or sign up to get the most recent research.




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Research History: Bank of Nova Scotia

RESEARCH HISTORY 2021 2022 2023 2024
VALUE
VALUE
GROWTH
GROWTH
SAFETY
SAFETY
SENTIMENT
SENTIMENT
360° VIEW
360° VIEW

Most recent update of the stock research: 4-Jul-2024. Financial reporting date used for calculating ranks: 31-Jan-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Bank of Nova Scotia is in the corresponding investment strategy.
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Combined financial peformance in Detail

ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Bank of Nova Scotia (Diversified Banks, Canada) shares have above-average financial characteristics compared with similar stocks. Shares of Bank of Nova Scotia are a good value (attractively priced) with a consolidated Value Rank of 84 (better than 84% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 19), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on Bank of Nova Scotia's financial characteristics. As the company Bank of Nova Scotia's key financial metrics exhibit good value (Obermatt Value Rank of 84) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 19), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 84% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

RESEARCH HISTORY 2021 2022 2023 2024
VALUE
VALUE
GROWTH
GROWTH
SAFETY
SAFETY
COMBINED
COMBINED

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of Bank of Nova Scotia the better the performance.


Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 84 (better than 84% compared with alternatives) for 2024, Bank of Nova Scotia shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Bank of Nova Scotia. Price-to-Sales (P/S) is 78, which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value concerning Bank of Nova Scotia's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 78% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 96 (dividends are expected to be higher than 96% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 59% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Bank of Nova Scotia to 41. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 84, is a buy recommendation based on Bank of Nova Scotia's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more


VALUE METRICS 2021 2022 2023 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)
DIVIDEND YIELD
DIVIDEND YIELD
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE

Last update of Value Rank: 4-Jul-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bank of Nova Scotia; except for dividend yield where the rank is higher, the higher the yield.


Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Bank of Nova Scotia shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Bank of Nova Scotia. Sales Growth has a value of 51 which means that currently professionals expect the company to grow more than 51% of its competitors. Profit Growth with a value of 63 and Capital Growth with a rank of 63 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 15, which means that stock returns have recently been below 85% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. Bank of Nova Scotia has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Bank of Nova Scotia, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS 2021 2022 2023 2024
REVENUE GROWTH
REVENUE GROWTH
PROFIT GROWTH
PROFIT GROWTH
CAPITAL GROWTH
CAPITAL GROWTH
STOCK RETURNS
STOCK RETURNS
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH

Last update of Growth Rank: 4-Jul-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bank of Nova Scotia.


Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 19 (better than 19% compared with alternatives), the company Bank of Nova Scotia has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Bank of Nova Scotia is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Bank of Nova Scotia and the other two below average. Refinancing is at 97, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 97% of its competitors. But Leverage is high with a rank of 2, meaning the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. Liquidity is also on the riskier side with a rank of 15, meaning the company generates less profit to service its debt than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 19 (worse than 81% compared with alternatives), Bank of Nova Scotia has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Bank of Nova Scotia are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Bank of Nova Scotia and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS 2021 2022 2023 2024
LEVERAGE
LEVERAGE
REFINANCING
REFINANCING
LIQUIDITY
LIQUIDITY
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bank of Nova Scotia and the more cash is available to service its debt.


Sentiment Metrics in Detail

SENTIMENT 2021 2022 2023 2024
ANALYST OPINIONS
ANALYST OPINIONS
OPINIONS CHANGE
OPINIONS CHANGE
PRO HOLDINGS
PRO HOLDINGS
MARKET PULSE
MARKET PULSE
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT

Last update of Sentiment Rank: 4-Jul-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bank of Nova Scotia.
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Free stock analysis by the purely fact based Obermatt Method for Bank of Nova Scotia from July 4, 2024.

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