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

CA0641491075

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
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.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Bank of Nova Scotia stock research in summary

scotiabank.com

ANALYSIS: With an Obermatt Combined Rank of 34 (worse than 66% compared with investment alternatives), Bank of Nova Scotia (Diversified Banks, Canada) shares have somewhat below-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 95 (better than 95% of alternatives) but show below-average growth (Growth Rank of 23), and are riskily financed (Safety Rank of 10), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 34, is a hold 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 95) but low growth (Obermatt Growth Rank of 23) and risky financing practices (Obermatt Safety Rank of 10), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 95% 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

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	95
Growth Rank	23
Safety Rank	10
Combined Rank	34

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

20-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bank of Nova Scotia

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	87	91	95	95
GROWTH
GROWTH	61	89	23	23
SAFETY
SAFETY	35	39	10	10
SENTIMENT
SENTIMENT	55	5	42	^new
360° VIEW
360° VIEW	65	63	34	^new

Most recent update of the stock research: 20-Feb-2025. Financial reporting date used for calculating ranks: 31-Oct-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

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	87	91	95	95
GROWTH
GROWTH	61	89	23	23
SAFETY
SAFETY	35	39	10	10
COMBINED
COMBINED	67	97	34	34

Last update of combined financial performance: 20-Feb-2025. 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 95 (better than 95% compared with alternatives) for 2025, Bank of Nova Scotia shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Bank of Nova Scotia. Price-to-Sales is 86 which means that the stock price compared with what market professionals expect for future sales is lower than for 86% of comparable companies, indicating a good value for Bank of Nova Scotia's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 91% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 51. Compared with other companies in the same industry, dividend yields of Bank of Nova Scotia are expected to be higher than for 96% of all competitors (a Dividend Yield rank of 96). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 95, is a buy recommendation based on Bank of Nova Scotia's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Bank of Nova Scotia based on its detailed value metrics. 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	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	81	86	86
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	87	81	91	91
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	27	61	51	51
DIVIDEND YIELD
DIVIDEND YIELD	100	96	96	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	87	91	95	95

Last update of Value Rank: 20-Feb-2025. 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 23 (better than 23% compared with alternatives), Bank of Nova Scotia shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Bank of Nova Scotia. While Profit Growth has a good rank of 60, as professionals currently expect the company to grow its profits more than 60% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 48, which means that currently professionals expect the company to grow less than 52% of its competitors, while Capital Growth has a rank of 11 and Stock Returns have been below market median, with a rank of 17 (83% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. 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, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	76	80	48	48
PROFIT GROWTH
PROFIT GROWTH	20	82	60	60
CAPITAL GROWTH
CAPITAL GROWTH	79	45	11	11
STOCK RETURNS
STOCK RETURNS	51	63	17	17
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	89	23	23

Last update of Growth Rank: 20-Feb-2025. 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 10 (better than 10% 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. Liquidity is at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 34, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 66% of its competitors. Leverage is also high at a rank of 3, which means that the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 10 (worse than 90% compared with alternatives), Bank of Nova Scotia has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	10	4	3	3
REFINANCING
REFINANCING	47	77	34	34
LIQUIDITY
LIQUIDITY	78	58	57	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	35	39	10	10

Last update of Safety Rank: 20-Feb-2025. 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	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	5	21	^new
OPINIONS CHANGE
OPINIONS CHANGE	25	4	50	^new
PRO HOLDINGS
PRO HOLDINGS	8	21	39	^new
MARKET PULSE
MARKET PULSE	80	56	89	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	55	5	42	^new

Last update of Sentiment Rank: 20-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bank of Nova Scotia.
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