Bank of New York Mellon (BK) AI Stock Analysis

• Market Cap: $76.52B
• Dividend Yield: 1.81%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.91
• Revenue Growth: -9.40%
• EPS Growth: N/A
• Country: US
• Employees: 51,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.88
• Shares Outstanding: 697,349,000
• 10 Day Avg. Volume: 4,424,221
• 30 Day Avg. Volume: 3,569,392
• PEG Ratio: 0.26
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -72.96
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $118.86
• Price Target Upside: 11.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 79 Outperform
• Price Target: $124.00 ▲(15.86% Upside)

The Bank of New York Mellon Corporation's strong financial performance and positive earnings call are the primary drivers of its high score. Technical indicators support a stable outlook, while valuation metrics suggest fair pricing. Despite some challenges in investment management, the company's strategic focus on innovation and client expansion positions it well for future growth.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

AI Integration

Advancements in AI integration can enhance operational efficiency and innovation, providing a competitive edge and driving future growth.

Strong Capital Return

Strong capital return reflects robust cash generation and shareholder value focus, indicating financial health and management confidence in future prospects.

Negative Factors

Investment Management Challenges

Declining investment management fees suggest challenges in maintaining competitive offerings, which could impact revenue streams if not addressed.

Flat Assets Under Management

Flat AUM growth indicates potential stagnation in asset gathering, which may limit future revenue growth if not revitalized.

Decline in Foreign Exchange Revenue

A decline in foreign exchange revenue can reduce diversification of income streams, potentially affecting overall financial performance.

Bank of New York Mellon Business Overview & Revenue Model

Company Description

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and Other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services; and clearance and collateral management services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The company was founded in 1784 and is headquartered in New York, New York.

How the Company Makes Money

BNY Mellon generates revenue through a diversified model that primarily includes fee-based services and asset management. Key revenue streams consist of asset servicing fees, which are charged for managing clients' investments and providing custody services, and investment management fees from managing client assets across various investment strategies. Additionally, the company earns revenues from treasury services, which include cash management and foreign exchange services. Significant partnerships with financial institutions, corporations, and asset owners enhance its service offerings and broaden its client base, contributing to stable earnings. The company also benefits from a global network that allows it to capture a wide array of client needs, ultimately driving growth and profitability.

Bank of New York Mellon Financial Statement Overview

Summary

The Bank of New York Mellon Corporation exhibits strong financial health with impressive revenue and profit growth, a solid balance sheet with low leverage, and improving cash flows. While there are minor fluctuations in some areas, the overall financial position is robust, supported by consistent growth and effective cost management.

Income Statement

The Bank of New York Mellon Corporation has demonstrated consistent revenue growth with a TTM revenue increase from the previous year. Gross profit margins are nearly at the total revenue level, indicating strong cost control. Net profit margin shows a healthy increase, reflecting improved profitability. However, there is a slight decline in EBIT margin, suggesting rising operational expenses. Overall, the income statement reflects robust revenue growth and profitability.

Balance Sheet

The company's balance sheet indicates a solid equity base with a relatively low debt-to-equity ratio, highlighting low financial leverage. The equity ratio has remained stable, showcasing a strong asset base. There is a consistent increase in total assets, which is a positive indicator of growth. However, the reduced cash and equivalents over the year may require monitoring. Overall, the balance sheet is stable with low leverage and strong equity support.

Cash Flow

Operating cash flow has demonstrated growth, reflecting strong cash generation from operations. The free cash flow this year shows a rebound, indicating effective capital expenditure management. The operating cash flow to net income ratio is healthy, suggesting effective earnings conversion into cash. However, fluctuations in free cash flow in previous periods highlight potential volatility in cash management. Overall, cash flows are improving, but require careful management to maintain stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.17B	39.55B	33.79B	19.80B	15.86B	15.47B
Gross Profit	18.89B	18.19B	17.37B	16.15B	15.86B	15.47B
EBITDA	8.11B	7.65B	6.17B	5.26B	6.51B	0.00
Net Income	4.98B	4.53B	3.30B	2.56B	3.76B	3.62B
Balance Sheet
Total Assets	485.78B	416.06B	409.88B	405.78B	444.44B	469.63B
Cash, Cash Equivalents and Short-Term Investments	186.85B	200.61B	238.93B	225.56B	266.75B	313.01B
Total Debt	51.28B	45.44B	46.24B	43.19B	38.25B	37.64B
Total Liabilities	441.24B	374.30B	368.97B	364.93B	401.05B	423.51B
Stockholders Equity	43.95B	41.32B	40.77B	40.73B	43.03B	45.80B
Cash Flow
Free Cash Flow	2.38B	-782.00M	4.69B	13.72B	1.62B	3.82B
Operating Cash Flow	3.85B	687.00M	5.91B	15.07B	2.84B	5.04B
Investing Cash Flow	-42.72B	-9.48B	-5.81B	19.87B	19.67B	-78.45B
Financing Cash Flow	39.72B	6.34B	-3.52B	-33.65B	-21.96B	75.51B

Bank of New York Mellon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BK, the sentiment is Positive. The current price of 107.03 is below the 20-day moving average (MA) of 107.27, above the 50-day MA of 105.81, and above the 200-day MA of 91.42, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 62.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BK.

Bank of New York Mellon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	79 Outperform	$76.52B	15.65	―	1.81%	-9.40%	―
STT	73 Outperform	$32.71B	11.79	11.14%	2.76%	6.88%	49.49%
IVZ	71 Outperform	$10.19B	24.53	5.74%	3.62%	6.79%	―
BEN	69 Neutral	$11.76B	43.43	2.16%	5.65%	4.72%	-67.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AMP	66 Neutral	$45.19B	14.91	58.24%	1.30%	7.11%	9.89%
NTRS	66 Neutral	$24.64B	15.14	13.31%	2.43%	3.44%	16.76%

Bank of New York Mellon Corporate Events

BNY Mellon Reports Strong Q3 2025 Financial Results

The Bank of New York Mellon Corporation (BNY) is a global financial services company that provides asset management and custody services, operating primarily in the financial sector with a significant presence in securities services and market and wealth services.

BNY Mellon Reports Record Revenue and Strategic Growth

The Bank of New York Mellon Corporation’s recent earnings call painted a picture of robust financial health and strategic innovation. The company reported record revenue growth and a significant increase in earnings per share, underscoring its strong performance. Despite some challenges in investment management fees and foreign exchange revenue, the overall sentiment was positive, driven by client balance growth and advancements in AI integration.

BNY Mellon Reports Record Q3 2025 Financial Results

On October 16, 2025, BNY reported its financial results for the third quarter of 2025, highlighting a record revenue of $5.1 billion, which marks a 9% increase year-over-year. The company achieved a pre-tax margin of 36% and an earnings per share of $1.88, up 25% from the previous year. BNY attributes its strong performance to broad-based growth across its platforms and the success of its core transformation programs, which have improved sales momentum and operational efficiency. The introduction of its AI platform, Eliza, is part of its strategy to unlock further potential for clients and shareholders.

The most recent analyst rating on (BK) stock is a Buy with a $122.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon stock, see the BK Stock Forecast page.

BNY Mellon Eliminates Series G Preferred Stock

On September 23, 2025, BNY Mellon filed a Certificate of Elimination with the Delaware Secretary of State, effectively removing all matters related to its Series G Noncumulative Perpetual Preferred Stock from its Restated Certificate of Incorporation. This follows the redemption of all outstanding shares of the Series G Preferred Stock on September 20, 2025, indicating a strategic move in the company’s capital management.

The most recent analyst rating on (BK) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on BNY stock, see the BK Stock Forecast page.

BNY Announces Redemption of Series G Preferred Stock

On September 11, 2025, The Bank of New York Mellon Corporation announced its plan to redeem 10,000 shares of its Series G Noncumulative Perpetual Preferred Stock and all corresponding depositary shares on September 20, 2025. This redemption will result in the shares no longer being outstanding and dividends will cease to accrue after the redemption date. The redemption price is set at $1,000 per depositary share, and the payment will be made on September 22, 2025. This move reflects BNY‘s ongoing financial management strategy and may impact stakeholders holding these shares.

The most recent analyst rating on (BK) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on BNY stock, see the BK Stock Forecast page.

BNY Issues Series L Preferred Stock

On September 10, 2025, The Bank of New York Mellon Corporation issued Series L Noncumulative Perpetual Preferred Stock, with a liquidation preference of $100,000 per share. The issuance imposes restrictions on the company’s ability to declare or pay dividends on its common stock if dividends on the Series L Preferred Stock are not declared and paid. The company also entered into an underwriting agreement on September 3, 2025, with several financial institutions for a public offering of 500,000 depositary shares, each representing a 1/100th interest in a share of the Series L Preferred Stock. This move is part of their strategic financial operations, potentially impacting their market positioning and stakeholder relations.

The most recent analyst rating on (BK) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on BNY stock, see the BK Stock Forecast page.

BNY Announces Public Offering of Depositary Shares

On September 3, 2025, The Bank of New York Mellon Corporation announced a proposed public offering of depositary shares, each representing a 1/100th interest in a share of its new Series L Noncumulative Perpetual Preferred Stock. The proceeds from this offering are intended for general corporate purposes, including the potential redemption of its Series H and Series G Noncumulative Perpetual Preferred Stock, subject to market conditions. The offering’s pricing and the decision to redeem these stocks are not guaranteed and will depend on future market conditions.

The most recent analyst rating on (BK) stock is a Buy with a $116.00 price target. To see the full list of analyst forecasts on BNY stock, see the BK Stock Forecast page.