BNS Stock Analysis: Bank of Nova Scotia | NYSE
Banks - Diversified | NYSE, USA | Market Cap: 104.707m USD | 12M Return: 66.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 243M
EPS Trend: 44.2%
Qual. Beats: 1
Rev. Trend: 88.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Bank of Nova Scotia (BNS) is a Canadian diversified bank operating across four segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The bank serves retail, commercial, and institutional customers through products including deposits, loans, mortgages, credit cards, insurance, and capital markets services. It is one of Canadas largest banks and a constituent of the Big Five Canadian banking group, with a particularly notable footprint across Latin America and the Caribbean in addition to its domestic Canadian base.
BNS generates revenue through a mix of net interest income from lending activities, fee-based wealth management services (including brokerage, mutual funds, ETFs, and private banking), and retail automotive financing. The wealth management segment spans online, mobile, and full-service brokerage channels, as well as trust and private investment counsel services, providing a non-interest income diversifier against the core banking franchise. The international segment offers exposure to emerging market banking across Mexico, Peru, Chile, Colombia, and Central America, distinguishing BNS from peers with more limited geographic reach.
As a large-cap Financials sector stock, BNS operates under the regulatory oversight of the Office of the Superintendent of Financial Institutions (OSFI) in Canada, and is subject to international banking regulators in the jurisdictions where it operates. Founded in 1832 and headquartered in Toronto, the bank has nearly two centuries of operating history and trades on the NYSE in addition to the Toronto Stock Exchange.
- Net interest margin compresses as Bank of Canada and Fed cut rates
- International Banking segment drives Latin America revenue and earnings
- Loan loss provisions rise on Canadian retail credit deterioration
| Net Income: 9.55b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.32 > 1.0 |
| NWC/Revenue: -1.05k% < 20% (prev -1.10k%; Δ 46.34% < -1%) |
| CFO/TA 0.02 > 3% & CFO 28.1b > Net Income 9.55b |
| Net Debt (225b) to EBITDA (14.4b): 15.63 < 3 |
| Current Ratio: 0.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (906.4m) vs 12m ago -27.26% < -2% |
| Gross Margin: 47.70% > 18% (prev 40.55%; Δ 7.14% > 0.5%) |
| Asset Turnover: 4.83% > 50% (prev 5.31%; Δ -0.48% > 0%) |
| Interest Coverage Ratio: 0.39 > 6 (EBIT TTM 12.8b / Interest Expense TTM 32.6b) |
| A: -0.49 (Total Current Assets 356b - Total Current Liabilities 1103b) / Total Assets 1522b |
| B: 0.04 (Retained Earnings 59.9b / Total Assets 1522b) |
| C: 0.01 (EBIT TTM 12.8b / Avg Total Assets 1468b) |
| D: 0.06 (Book Value of Equity 87.2b / Total Liabilities 1433b) |
| Altman-Z'' = -2.97 = D |
As of July 11, 2026, the stock is trading at USD 87.59 with a total of 1,017,877 shares traded. Over the past week, the price has changed by +3.55%, over one month by +8.42%, over three months by +21.28% and over the past year by +66.08%.
Current recommended Stop Loss: 83.50 (which is 4.7% or 2.8 ATR below the current price).
Bank of Nova Scotia has received a consensus analysts rating of 3.47. Therefore, it is recommended to hold BNS.
- StrongBuy: 4
- Buy: 0
- Hold: 10
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 81.3 | -7.2% |
Market Cap CAD = 148b (105b USD * 1.417 USD.CAD)
P/E Trailing = 16.7123
P/E Forward = 13.369
P/S = 3.0602
P/B = 1.969
P/EG = 1.2572
Revenue TTM = 71.0b CAD
EBIT TTM = 12.8b CAD
EBITDA TTM = 14.4b CAD
Long Term Debt = 161b CAD (from longTermDebt, last quarter)
Short Term Debt = 369b CAD (from shortTermDebt, last quarter)
Debt = 582b CAD (from shortLongTermDebtTotal, last quarter) + Leases 2.96b
Net Debt = 225b CAD (calculated: Debt 582b - CCE 356b)
Enterprise Value = 374b CAD (148b + Debt 582b - CCE 356b)
Interest Coverage Ratio = 0.39 (Ebit TTM 12.8b / Interest Expense TTM 32.6b)
EV/FCF = 13.56x (Enterprise Value 374b / FCF TTM 27.6b)
FCF Yield = 7.37% (FCF TTM 27.6b / Enterprise Value 374b)
FCF Margin = 38.84% (FCF TTM 27.6b / Revenue TTM 71.0b)
Net Margin = 13.45% (Net Income TTM 9.55b / Revenue TTM 71.0b)
Gross Margin = 47.70% ((Revenue TTM 71.0b - Cost of Revenue TTM 37.1b) / Revenue TTM)
Gross Margin QoQ = 48.86% (prev 49.37%)
Tobins Q-Ratio = 0.25 (Enterprise Value 374b / Total Assets 1522b)
Interest Expense / Debt = 5.60% (Interest Expense 32.6b / Debt 582b)
Taxrate = 24.62% (3.16b / 12.8b)
NOPAT = 9.66b (EBIT 12.8b * (1 - 24.62%))
Current Ratio = 0.32 (Total Current Assets 356b / Total Current Liabilities 1103b)
Debt / Equity = 6.67 (Debt 582b / totalStockholderEquity, last quarter 87.2b)
Debt / EBITDA = 15.63 (Net Debt 225b / EBITDA 14.4b)
Debt / FCF = 8.18 (Net Debt 225b / FCF TTM 27.6b)
Total Stockholder Equity = 86.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.65% (Net Income 9.55b / Total Assets 1522b)
RoE = 11.06% (Net Income TTM 9.55b / Total Stockholder Equity 86.4b)
RoCE = 5.18% (EBIT 12.8b / Capital Employed (Equity 86.4b + L.T.Debt 161b))
RoIC = 1.23% (NOPAT 9.66b / Invested Capital 784b)
WACC = 5.00% (E(148b)/V(730b) * Re(8.04%) + D(582b)/V(730b) * Rd(5.60%) * (1-Tc(0.25)))
Discount Rate = 8.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 20.95 | Cagr: -12.40%
[DCF] Terminal Value 77.97% ; FCFF base≈25.0b ; Y1≈28.7b ; Y5≈42.2b
[DCF] Fair Price = 333.7 (EV 635b - Net Debt 225b = Equity 409b / Shares 1.23b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 44.18 | EPS CAGR: 3.24% | SUE: 1.06 | # QB: 1
Revenue Correlation: 88.51 | Revenue CAGR: 43.61% | SUE: 0.67 | # QB: 0
EPS current Quarter (2026-07-31): EPS=2.09 | Chg30d=+0.45% | Revisions=+31% | Analysts=12
EPS current Year (2026-10-31): EPS=8.29 | Chg30d=+1.40% | Revisions=+67% | GrowthEPS=+16.9% | GrowthRev=+5.0%
EPS next Year (2027-10-31): EPS=9.25 | Chg30d=+1.03% | Revisions=+27% | GrowthEPS=+11.6% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +49% (up=26, down=8)