Bank of New York Mellon Corporation (BK) AI Stock Analysis

• Market Cap: $65.88B
• Dividend Yield: 2.04%
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.92
• Revenue Growth: 10.30%
• EPS Growth: 49.77%
• Country: US
• Employees: 51,000
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 1.58
• Shares Outstanding: 715,434,270
• 10 Day Avg. Volume: 5,386,184
• 30 Day Avg. Volume: 4,057,536
• PEG Ratio: 2.48
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.64
• Enterprise Value/Market Cap: -0.28
• Enterprise Value/Revenue: -0.25
• Enterprise Value/Gross Profit: -0.99
• Enterprise Value/Ebitda: -0.64
• 1Y Price Target: $95.60
• Price Target Upside: 3.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $103.00 ▲(11.85%Upside)

The Bank of New York Mellon Corporation demonstrates strong financial performance and positive technical indicators. The earnings call highlights significant growth and strategic initiatives despite some environmental challenges. The company's valuation appears fair, with a solid dividend yield. Recent corporate actions further enhance shareholder value.

Positive Factors

Management Performance

BNY is considered a best-in-class management team that has delivered superior returns for shareholders, unlikely to change with M&A.

Strategic Deal

The strategic rationale of a potential deal seems compelling, given the scale benefits tied to the custody business and the potential addition of a wealth management growth engine to BNY.

Negative Factors

Fee Revenue

Lower fee revenue outlook following weaker-than-expected Investment & Wealth Mgmt performance leads to lower near-term estimates.

Revenue Growth

The ability to generate sustainably higher revenue growth still seems to be determined.

Bank of New York Mellon Corporation Business Overview & Revenue Model

Company Description

The Bank of New York Mellon Corporation (BK), commonly known as BNY Mellon, is a leading global financial services company headquartered in New York City. It operates in the investment services and investment management sectors, offering a wide range of products and services to its clients worldwide. Core offerings include asset servicing, wealth management, issuer services, clearing services, and treasury services. As one of the oldest banking institutions in the United States, BNY Mellon serves a diverse clientele, including corporations, financial institutions, governments, and high-net-worth individuals.

How the Company Makes Money

BNY Mellon generates revenue through multiple streams, primarily categorized under investment services and investment management. In investment services, the company earns fees from asset servicing, which includes custody and fund services, as well as clearing services. Additionally, BNY Mellon provides issuer services and treasury services, both of which contribute to its revenue. In investment management, the firm collects fees based on the assets under management (AUM), offering investment solutions and wealth management services to institutional and individual clients. Key revenue drivers include transaction fees, management fees, and performance fees. Strategic partnerships and collaborations with other financial institutions further enhance its revenue-generating capabilities.

Bank of New York Mellon Corporation 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	18.67B	18.55B	33.79B	16.49B	15.86B	15.47B
Gross Profit	18.47B	18.26B	17.29B	16.03B	15.86B	15.47B
EBITDA	7.70B	7.39B	5.84B	5.26B	6.51B	6.10B
Net Income	4.72B	4.53B	3.29B	2.57B	3.76B	3.62B
Balance Sheet
Total Assets	440.69B	416.06B	409.88B	405.78B	444.44B	469.63B
Cash, Cash Equivalents and Short-Term Investments	0.00	200.61B	238.93B	225.56B	266.75B	313.01B
Total Debt	32.74B	45.44B	46.24B	43.19B	38.25B	37.64B
Total Liabilities	397.07B	374.30B	368.97B	364.93B	401.05B	423.51B
Stockholders Equity	43.12B	41.32B	40.77B	40.73B	43.03B	45.80B
Cash Flow
Free Cash Flow	2.29B	-782.00M	4.69B	13.72B	1.62B	3.82B
Operating Cash Flow	3.78B	687.00M	5.91B	15.07B	2.84B	5.04B
Investing Cash Flow	-1.54B	-9.48B	-5.81B	19.87B	19.67B	-78.45B
Financing Cash Flow	-995.00M	6.34B	-3.52B	-33.65B	-21.96B	75.51B

Bank of New York Mellon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.09
• 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 92.09 is above the 20-day moving average (MA) of 90.22, above the 50-day MA of 87.28, and above the 200-day MA of 80.85, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.06 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 Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TROW	81 Outperform	$21.74B	11.20	19.47%	5.08%	6.51%	4.52%
AMP	80 Outperform	$51.29B	18.30	58.11%	1.18%	9.14%	0.05%
BK	78 Outperform	$65.88B	15.01	11.29%	2.04%	10.30%	49.77%
NTRS	71 Outperform	$25.69B	12.33	17.54%	2.27%	21.00%	137.62%
STT	70 Neutral	$31.22B	12.30	11.21%	2.78%	15.02%	66.71%
KKR	68 Neutral	$119.82B	58.32	9.03%	0.55%	-27.45%	-46.67%
Sector *	61 Neutral	C$14.56B	6.16	20.17%	5.70%	26.93%	-38.21%

Bank of New York Mellon Corporation Corporate Events

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.

The most recent analyst rating on (BK) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon Corporation stock, see the BK Stock Forecast page.

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.

The most recent analyst rating on (BK) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon Corporation stock, see the BK Stock Forecast page.

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.

The most recent analyst rating on (BK) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon Corporation stock, see the BK Stock Forecast page.

BNY Mellon Reports Strong Q1 2025 Financial Results

On April 11, 2025, BNY reported its financial results for the first quarter of 2025, showing a solid performance with total revenue of $4.8 billion, a 6% increase year-over-year. The company’s strategic transition to a platforms operating model and new commercial coverage approach contributed to a pre-tax margin improvement to 32% and a return on tangible common equity (ROTCE) of 24%, indicating strong operational leverage and positioning BNY to manage a range of macroeconomic scenarios.