Bank Of New York Mellon Corp
Exchange: NYSESector: Financial ServicesIndustry: Asset Management
Carnegie Mellon, cmu.edu, is a private, internationally ranked research university with acclaimed programs spanning the sciences, engineering, technology, business, public policy, humanities and the arts. Our diverse community of scholars, researchers, creators and innovators is driven to make real-world impacts that benefit people across the globe. With an unconventional, interdisciplinary and entrepreneurial approach, we do the work that matters.
Did you know?
Trading 40% below its estimated fair value of $188.96.
Current Price
$134.84
+2.18%GoodMoat Value
$188.96
40.1% undervaluedProfile
Valuation (TTM)
Market Cap$94.03B
P/E17.72
EV$2.92B
P/B2.12
Shares Out697.35M
P/Sales4.68
Revenue$20.08B
EV/EBITDA1.78
Bank Of New York Mellon Corp (BK) Stock Analysis
GoodMoat Analysis
Bank of New York Mellon (BK) is a leading global custody bank and asset manager with a durable moat built on scale, switching costs, and regulatory barriers. The stock appears favourably priced with a GoodMoat Target of $188.96, suggesting a significant margin of safety relative to its current price of $117.99.
Read full analysis
Bank of New York Mellon Corp (BK) is a premier global financial services company, primarily operating as a custody bank and asset manager. It provides critical services like asset servicing, clearing, and treasury management for institutional clients, handling trillions in assets under custody and administration. This role as a financial utility creates a significant moat. Applying the GoodMoat framework, BK scores well on several criteria: it possesses massive Scale Privilege in infrastructure, high Switching Costs due to the mission-critical and complex nature of its services, and Regulatory Barriers from operating in a highly licensed industry. Its strategic partnerships with large institutions further solidify its position. With a Moat Score likely exceeding the 5+ threshold, the business passes the initial quality gate. The valuation assessment is compelling. The GoodMoat Target price of $188.96 implies a margin of safety of approximately 60% from the current $117.99 price, which falls into the 'Deeply Undervalued' band (>40%) per the framework's DCF analysis. Supporting this, the stock trades at a P/E of 15.5x and offers a Free Cash Flow Yield of 6.3%, which are reasonable for a stable financial institution. While the Debt/Equity ratio of 1.2 is a point to note, the company's profitability (27.6% Profit Margin, 12.5% ROE) and positive revenue growth support the quality case. For a value investor, BK represents a high-quality business with a durable competitive advantage trading at a price that provides a substantial margin of safety, making it worthy of deeper investigation. Analysis based on data as of 2024-05-15.
Market Cap$94.03B
Current Price$134.84
P/E Ratio17.72
Forward P/E—
PEG Ratio0.56
EPS$7.40
Book Value$63.54
P/B Ratio2.12
BK Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Cash: 78.2B
Revenue
16.5B
FY19
15.8B
FY20
15.9B
FY21
16.5B
FY22
17.7B
FY23
18.6B
FY24
20.1B
FY25
Net Income
4.4B
FY19
3.6B
FY20
3.8B
FY21
2.6B
FY22
3.3B
FY23
4.5B
FY24
5.5B
FY25
BK 52-Week Range
$72.96
$134.84
50-Day MA: $120.13200-Day MA: $110.73
Did you know?
Earnings per share grew at a 3.8% CAGR.
Bank Of New York Mellon Corp (BK) Financial Summary
Bank Of New York Mellon Corp (BK) is a Financial Services company in the Asset Management industry, listed on NYSE. The stock currently trades at $134.84 with a market capitalization of $94.03B.
Key valuation metrics include a P/E ratio of 17.72, price-to-book ratio of 2.12, and EPS of $7.40. The company reports a profit margin of 27.6% and return on equity of 12.5%.
BK Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $94.03B |
| P/E Ratio | 17.72 |
| EPS | $7.40 |
| P/B Ratio | 2.12 |
| P/S Ratio | 4.68 |
| EV/EBITDA | 1.78 |
| Dividend Yield | 1.54% |
| Profit Margin | 27.6% |
| Return on Equity | 12.5% |
| Debt/Equity | 1.20 |
BK Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $16.46B | $4.44B |
| FY20 | $15.81B | $3.62B |
| FY21 | $15.93B | $3.76B |
| FY22 | $16.53B | $2.56B |
| FY23 | $17.70B | $3.30B |
| FY24 | $18.62B | $4.53B |
| FY25 | $20.08B | $5.55B |
Bank Of New York Mellon Corp (BK) Valuation
Based on GoodMoat's DCF model, Bank Of New York Mellon Corp has a fair value estimate of $188.96. At the current price of $134.84, the stock appears 28.6% undervalued relative to our intrinsic value estimate.
BK Quality Indicators
Bank Of New York Mellon Corp maintains a profit margin of 27.6% and an operating margin of 37.8%. Return on equity stands at 12.5%. Debt-to-equity ratio is 1.20.
About Bank Of New York Mellon Corp
Carnegie Mellon, cmu.edu, is a private, internationally ranked research university with acclaimed programs spanning the sciences, engineering, technology, business, public policy, humanities and the arts. Our diverse community of scholars, researchers, creators and innovators is driven to make real-world impacts that benefit people across the globe. With an unconventional, interdisciplinary and entrepreneurial approach, we do the work that matters.
BK Free Cash Flow
Bank Of New York Mellon Corp generated $5.18B in trailing twelve-month free cash flow, representing an FCF yield of 5.51%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
BK Shares Outstanding
Bank Of New York Mellon Corp has 0.70 billion shares outstanding at a share price of $134.84, giving it a market capitalization of $94.03B.