BNS Stock Analysis: Bank of Nova Scotia | NYSE
Banks - Diversified | NYSE, USA | Market Cap: 113.266m USD | 12M Return: 54.3% | CA0641491075 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 167M
EPS Trend: 72.5%
Qual. Beats: 0
Rev. Trend: 82.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 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: 10.0b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 1.05 > 1.0 |
| NWC/Revenue: -316.7% < 20% (prev -1.12k%; Δ 808.0% < -1%) |
| CFO/TA 0.02 > 3% & CFO 37.1b > Net Income 10.0b |
| Net Debt (265b) to EBITDA (15.0b): 17.72 < 3 |
| Current Ratio: 0.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (874.0m) vs 12m ago -29.80% < -2% |
| Gross Margin: 48.67% > 18% (prev 42.48%; Δ 6.20% > 0.5%) |
| Asset Turnover: 4.83% > 50% (prev 5.22%; Δ -0.40% > 0%) |
| Interest Coverage Ratio: 0.42 > 6 (EBIT TTM 13.4b / Interest Expense TTM 32.1b) |
| A: -0.15 (Total Current Assets 10.3b - Total Current Liabilities 237b) / Total Assets 1549b |
| B: 0.04 (Retained Earnings 60.4b / Total Assets 1549b) |
| C: 0.01 (EBIT TTM 13.4b / Avg Total Assets 1482b) |
| D: 0.06 (Book Value of Equity 89.2b / Total Liabilities 1458b) |
| Altman-Z'' = -0.71 = B |
As of September 05, 2026, the stock is trading at USD 93.82 with a total of 1,065,651 shares traded. Over the past week, the price has changed by +1.55%, over one month by +7.68%, over three months by +16.37% and over the past year by +54.26%.
Current recommended Stop Loss: 89.50 (which is 4.6% or 2.3 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 | 91.2 | -2.7% |
Market Cap CAD = 156b (113b USD * 1.3792 USD.CAD)
P/E Trailing = 16.8047
P/E Forward = 13.9082
P/S = 3.2174
P/B = 1.9933
P/EG = 1.0867
Revenue TTM = 71.5b CAD
EBIT TTM = 13.4b CAD
EBITDA TTM = 15.0b CAD
Long Term Debt = 200b CAD (from longTermDebt, last fiscal year)
Short Term Debt = 237b CAD (from shortTermDebt, last quarter)
Debt = 276b CAD (from shortLongTermDebtTotal, last quarter) + Leases 2.96b
Net Debt = 265b CAD (calculated: Debt 276b - CCE 10.3b)
Enterprise Value = 421b CAD (156b + Debt 276b - CCE 10.3b)
Interest Coverage Ratio = 0.42 (Ebit TTM 13.4b / Interest Expense TTM 32.1b)
EV/FCF = 11.54x (Enterprise Value 421b / FCF TTM 36.5b)
FCF Yield = 8.66% (FCF TTM 36.5b / Enterprise Value 421b)
FCF Margin = 51.06% (FCF TTM 36.5b / Revenue TTM 71.5b)
Net Margin = 14.00% (Net Income TTM 10.0b / Revenue TTM 71.5b)
Gross Margin = 48.67% ((Revenue TTM 71.5b - Cost of Revenue TTM 36.7b) / Revenue TTM)
Gross Margin QoQ = 49.98% (prev 48.86%)
Tobins Q-Ratio = 0.27 (Enterprise Value 421b / Total Assets 1549b)
Interest Expense / Debt = 11.66% (Interest Expense 32.1b / Debt 276b)
Taxrate = 24.91% (3.27b / 13.1b)
NOPAT = 10.0b (EBIT 13.4b * (1 - 24.91%))
Current Ratio = 0.04 (Total Current Assets 10.3b / Total Current Liabilities 237b)
Debt / Equity = 3.09 (Debt 276b / totalStockholderEquity, last quarter 89.2b)
Debt / EBITDA = 17.72 (Net Debt 265b / EBITDA 15.0b)
Debt / FCF = 7.26 (Net Debt 265b / FCF TTM 36.5b)
Total Stockholder Equity = 87.7b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.68% (Net Income 10.0b / Total Assets 1549b)
RoE = 11.41% (Net Income TTM 10.0b / Total Stockholder Equity 87.7b)
RoCE = 4.65% (EBIT 13.4b / Capital Employed (Equity 87.7b + L.T.Debt 200b))
RoIC = 0.65% (NOPAT 10.0b / Invested Capital 1545b)
WACC = 8.54% (E(156b)/V(432b) * Re(8.17%) + D(276b)/V(432b) * Rd(11.66%) * (1-Tc(0.25)))
Discount Rate = 8.17% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -67.46 | Cagr: -14.03%
[DCF] Terminal Value 77.35% ; FCFF base≈29.3b ; Y1≈33.6b ; Y5≈49.4b
[DCF] Fair Price = 372.8 (EV 720b - Net Debt 265b = Equity 454b / Shares 1.22b; r=8.54% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 72.47 | EPS CAGR: 6.19% | SUE: 0.66 | # QB: 0
Revenue Correlation: 82.25 | Revenue CAGR: 35.09% | SUE: 0.76 | # QB: 0
EPS current Quarter (2027-01-31): EPS=2.31 | Chg30d=+2.63% | Revisions=+22% | Analysts=7
EPS current Year (2026-10-31): EPS=8.55 | Chg30d=+3.06% | Revisions=+40% | GrowthEPS=+20.6% | GrowthRev=+7.6%
EPS next Year (2027-10-31): EPS=9.50 | Chg30d=+2.31% | Revisions=+40% | GrowthEPS=+11.2% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: +46% (up=8, down=2)