Fact based stock research
BNY Mellon (NYSE:BK)
US0640581007
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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.
BNY Mellon stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), BNY Mellon (Asset Management & Custody, USA) shares have above-average financial characteristics compared with similar stocks. Shares of BNY Mellon are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives). But they show above-average growth (Growth Rank of 51) and are safely financed (Safety Rank of 59, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on BNY Mellon's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company BNY Mellon exhibits low value (Obermatt Value Rank of 37), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 51). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 59) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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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360° Viewnew| Country | USA |
| Industry | Asset Management & Custody |
| Index | Diversity USA, S&P 500 |
| Size class | X-Large |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: BNY Mellon
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 50 |
|
73 |
|
80 |
|
37 |
|
| GROWTH | ||||||||
| GROWTH | 5 |
|
27 |
|
91 |
|
51 |
|
| SAFETY | ||||||||
| SAFETY | 79 |
|
67 |
|
91 |
|
59 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
71 |
|
64 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
69 |
|
100 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), BNY Mellon (Asset Management & Custody, USA) shares have above-average financial characteristics compared with similar stocks. Shares of BNY Mellon are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives). But they show above-average growth (Growth Rank of 51) and are safely financed (Safety Rank of 59, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on BNY Mellon's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company BNY Mellon exhibits low value (Obermatt Value Rank of 37), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 51). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 59) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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 | 50 |
|
73 |
|
80 |
|
37 |
|
| GROWTH | ||||||||
| GROWTH | 5 |
|
27 |
|
91 |
|
51 |
|
| SAFETY | ||||||||
| SAFETY | 79 |
|
67 |
|
91 |
|
59 |
|
| COMBINED | ||||||||
| COMBINED | 53 |
|
68 |
|
100 |
|
53 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), BNY Mellon shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for BNY Mellon. Price-to-Sales (P/S) is 60, which means that the stock price compared with what market professionals expect for future sales is lower than for 60% of comparable companies, indicating a good value concerning BNY Mellon's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 57% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 32 (dividends are expected to be higher than for 32% 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 65% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for BNY Mellon to 35. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on BNY Mellon'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 on 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 low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging 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) | 40 |
|
89 |
|
81 |
|
60 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 43 |
|
43 |
|
62 |
|
57 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 62 |
|
69 |
|
77 |
|
35 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 58 |
|
45 |
|
47 |
|
32 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 50 |
|
73 |
|
80 |
|
37 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), BNY Mellon shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for BNY Mellon. Profit Growth has a rank of 84, which means that currently professionals expect the company to grow its profits more than 84% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 99 (above 99% of alternative investments). But Sales Growth has a below the median rank of 20, which means that, currently, professionals expect the company to grow less than 80% of its competitors, and Capital Growth also has a lower rank of 5. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for BNY Mellon. 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 mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 10 |
|
46 |
|
57 |
|
20 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 29 |
|
12 |
|
100 |
|
84 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
63 |
|
50 |
|
5 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 49 |
|
53 |
|
87 |
|
99 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 5 |
|
27 |
|
91 |
|
51 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company BNY Mellon has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of BNY Mellon is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for BNY Mellon and the other two below average. Leverage is at a rank of 98 meaning the company has a below-average debt-to-equity ratio. It has less debt than 98% of its competitors.Refinancing is at a rank of 4, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 96% of its competitors. Liquidity is at a rank of 48, meaning that the company generates less profit to service its debt than 52% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), BNY Mellon has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of BNY Mellon are on the safer side. Investors may have a short-term debt challenge and liquidity issues with BNY Mellon 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 | 92 |
|
100 |
|
96 |
|
98 |
|
| REFINANCING | ||||||||
| REFINANCING | 81 |
|
10 |
|
12 |
|
4 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 80 |
|
55 |
|
87 |
|
48 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 79 |
|
67 |
|
91 |
|
59 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
57 |
|
74 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
94 |
|
56 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
67 |
|
70 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
1 |
|
13 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
71 |
|
64 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for BNY Mellon from December 19, 2024.
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