BNY (BK) AI Stock Analysis

• Market Cap: $76.24B
• Dividend Yield: 1.79%
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.94
• Revenue Growth: 7.41%
• EPS Growth: 51.70%
• Country: US
• Employees: 51,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.93
• Shares Outstanding: 705,240,840
• 10 Day Avg. Volume: 3,361,665
• 30 Day Avg. Volume: 3,142,206
• 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: 0.04
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.16
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: $106.81
• Price Target Upside: -1.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 79 Outperform
• Price Target: $116.00 ▲(7.30% Upside)

The Bank of New York Mellon Corporation's stock score is driven by its strong financial performance and positive earnings call, showcasing robust revenue growth and strategic advancements. The technical analysis supports a bullish outlook, while the valuation indicates fair pricing. Challenges in the Investment Management segment are noted but do not significantly detract from the overall positive assessment.

Positive Factors

Revenue Growth

The consistent revenue growth demonstrates BNY Mellon's expanding market reach and effective business strategies, supporting long-term financial stability.

Cash Flow Improvement

Improved cash flows indicate effective capital management, enhancing BNY Mellon's ability to invest in growth opportunities and maintain financial health.

Leadership Change

The leadership change is expected to leverage Vince’s strategic approach, potentially driving further transformation and strategic execution at BNY Mellon.

Negative Factors

Investment Management Challenges

Challenges in the Investment Management segment could hinder growth and profitability, necessitating strategic adjustments to improve performance.

Net Outflows

Significant net outflows in investment management may impact future revenue and market position, requiring strategic focus to reverse the trend.

Debt Issuance

The new debt issuance could increase leverage, affecting financial flexibility and necessitating careful management to maintain a healthy balance sheet.

BNY 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.

BNY 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

BNY Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 108.11 is above the 20-day moving average (MA) of 106.13, above the 50-day MA of 103.08, and above the 200-day MA of 88.40, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 62.68 is Neutral, neither overbought nor oversold. The STOCH value of 73.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BK.

BNY Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	79 Outperform	$76.24B	16.60	11.75%	1.79%	7.41%	51.70%
BEN	76 Outperform	12.24B	46.08	2.53%	5.39%	4.72%	-67.85%
IVZ	74 Outperform	9.89B	24.09	5.32%	3.74%	6.79%	―
STT	73 Outperform	32.05B	12.66	10.44%	2.69%	11.66%	67.88%
NTRS	71 Outperform	24.77B	15.34	13.47%	2.36%	3.44%	16.76%
AMP	66 Neutral	46.37B	15.37	65.05%	1.25%	7.11%	9.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

BNY Corporate Events

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.

BNY Mellon Reports Strong Q2 2025 Financial Results

On July 15, 2025, BNY Mellon reported its financial results for the second quarter of 2025, achieving a 9% year-over-year revenue increase, surpassing $5 billion for the first time in a quarter. The company demonstrated significant positive operating leverage, resulting in a pre-tax margin of 37% and a return on tangible common equity (ROTCE) of 28%. This performance underscores BNY’s ongoing transformation and momentum, with record sales and enhanced operational efficiency following the launch of its new commercial model last year.

Bank of New York Mellon Increases Quarterly Dividend

On July 1, 2025, The Bank of New York Mellon Corporation announced its intention to increase its quarterly common stock cash dividend by 13%, from $0.47 to $0.53 per share, starting in the third quarter of 2025, pending Board approval. Additionally, the Federal Reserve confirmed that the company’s Stress Capital Buffer requirement will remain at 2.5%, effective from October 1, 2025, to September 30, 2026. The company is also authorized to continue its share repurchase program, with repurchases subject to factors like capital position and market conditions. The Federal Reserve’s proposed revisions to the capital plan rule are not expected to impact the company’s SCB requirement.

BNY Mellon CEO Robin Vince Elected Chairman

On June 12, 2025, The Bank of New York Mellon Corporation announced that Robin Vince, the current CEO, was elected as Chairman of the Board of Directors, effective September 1, 2025, succeeding Joseph J. Echevarria. Echevarria will transition to the role of lead independent director. This leadership change is expected to leverage Vince’s strategic approach and deep understanding of BNY’s business to continue the firm’s transformation and drive strategy, while Echevarria will facilitate communication between independent directors and the Chairman.

Bank of New York Mellon Issues $2 Billion Notes

On June 10, 2025, The Bank of New York Mellon Corporation issued $2 billion in callable senior medium-term notes due in 2028 and 2036. This issuance, registered under the Securities Act of 1933, reflects the company’s strategic financial management and may impact its capital structure and stakeholder interests.