Bank of New York Mellon (BK) AI Stock Analysis

• Market Cap: $85.75B
• Dividend Yield: 1.71%
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.89
• Revenue Growth: 4.22%
• EPS Growth: 51.01%
• Country: US
• Employees: 51,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.02
• Shares Outstanding: 688,236,000
• 10 Day Avg. Volume: 3,870,168
• 30 Day Avg. Volume: 3,478,935
• 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: 0.54
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 5.55
• 1Y Price Target: $133.04
• Price Target Upside: 7.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.31
• Revenue Forecast (FY): $21.03B

• Rating: 79 Outperform
• Price Target: $138.00 ▲(11.32% Upside)

The score is driven primarily by strong financial performance (profitability, improved leverage, and solid cash conversion despite weaker FCF growth) and supportive technical momentum (price above major moving averages with positive MACD). Earnings-call guidance and raised medium-term targets further reinforce the outlook, while valuation appears reasonable with a moderate dividend yield.

Positive Factors

Scale in custody & ETF servicing

Huge custody scale and rapid ETF servicing growth create durable network effects and high switching costs. Large AUC/A and rising ETF servicing volumes support recurring fee streams, cross‑sell opportunities and a structural competitive moat for securities servicing revenue.

Operating leverage and margin expansion

Sustained multi‑quarter operating leverage and rising pretax margins reflect productivity from the transformation program. Structural cost discipline and scale gains underpin the company's ability to convert revenue growth into higher profitability over the medium term.

Strong capital and liquidity profile

Healthy CET1 and robust liquidity metrics provide a durable cushion against stress and enable consistent capital returns. The capacity to return capital while maintaining regulatory buffers supports shareholder allocation and strategic optionality over multiple economic cycles.

Negative Factors

Investment & Wealth outflows

Persistent long‑term AUM outflows directly erode fee revenue and profitability in a high‑margin business. If flows remain negative, it reduces scale advantages in wealth management and limits cross‑sell, making earnings more reliant on less sticky NII and markets revenue.

Pershing fee pressure & fee mix risk

Compression in platform fees at Pershing weakens a diversified fee base. Greater reliance on net interest income shifts earnings sensitivity to reinvestment yields and balance dynamics, reducing revenue resilience if fee recovery lags or fee margins compress further.

Decline in free cash flow growth

A sharp drop in FCF growth diminishes the company’s long‑term capacity to fund buybacks, dividends and strategic investments. While current FCF conversion remains decent, continued declines would strain capital allocation flexibility and could force tradeoffs on returns vs reinvestment.

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

Bank of New York Mellon generates revenue primarily through fees charged for its various services. The main revenue streams include investment management fees from asset management services, which are based on a percentage of assets under management (AUM), and servicing fees from custody and administration services, which are derived from the safekeeping of client assets and related operational services. Additionally, the company earns revenue from foreign exchange services, securities lending, and other ancillary services. Strategic partnerships with financial institutions and technology providers also enhance its service offerings and contribute to its earnings by expanding its client base and improving operational efficiency.

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. Minor fluctuations in EBIT margin and free cash flow are noted, but overall, the financial position is robust.

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	40.41B	39.55B	33.79B	19.80B	15.86B	16.60B
Gross Profit	19.40B	18.19B	17.37B	16.15B	15.86B	15.14B
EBITDA	8.41B	7.65B	6.17B	5.26B	6.51B	6.10B
Net Income	5.24B	4.53B	3.30B	2.56B	3.76B	3.62B
Balance Sheet
Total Assets	455.31B	416.06B	409.88B	405.78B	444.44B	469.63B
Cash, Cash Equivalents and Short-Term Investments	168.41B	200.61B	238.93B	225.56B	266.75B	313.01B
Total Debt	51.52B	45.44B	46.24B	43.19B	38.25B	37.64B
Total Liabilities	410.95B	374.30B	368.97B	364.93B	401.05B	423.51B
Stockholders Equity	43.88B	41.32B	40.77B	40.73B	43.03B	45.80B
Cash Flow
Free Cash Flow	1.56B	-782.00M	4.69B	13.72B	1.62B	3.82B
Operating Cash Flow	3.10B	687.00M	5.91B	15.07B	2.84B	5.04B
Investing Cash Flow	-21.89B	-9.48B	-5.81B	19.87B	19.67B	-78.45B
Financing Cash Flow	18.58B	6.34B	-3.52B	-33.65B	-21.96B	75.51B

Bank of New York Mellon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 123.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 123.97 is above the 20-day moving average (MA) of 118.78, above the 50-day MA of 114.45, and above the 200-day MA of 99.87, indicating a bullish trend. The MACD of 2.47 indicates Negative momentum. The RSI at 69.57 is Neutral, neither overbought nor oversold. The STOCH value of 91.15 is Negative, 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
AMP	80 Outperform	$47.15B	13.92	59.59%	1.26%	5.76%	39.77%
BK	79 Outperform	$85.75B	16.84	12.96%	1.71%	4.22%	51.01%
NTRS	78 Outperform	$27.49B	16.94	13.31%	2.21%	-4.52%	7.01%
IVZ	77 Outperform	$12.57B	19.18	7.29%	3.08%	6.64%	―
BEN	74 Outperform	$13.36B	28.11	3.84%	5.33%	2.31%	5.71%
STT	73 Outperform	$37.63B	14.26	11.14%	2.43%	5.62%	49.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bank of New York Mellon Corporate Events

BNY Mellon Posts Record 2025 Earnings and Revenue

On January 13, 2026, BNY reported its financial results for the fourth quarter and full year ended December 31, 2025, posting diluted earnings per share of $2.02 for the quarter, or $2.08 on an adjusted basis, and full-year EPS of $7.40, or $7.50 adjusted. The bank delivered record 2025 net income of $5.3 billion on record revenue of $20.1 billion, achieved a return on tangible common equity of 26%, and generated eight consecutive quarters of positive operating leverage, leading to a 28% year-over-year increase in EPS and $5.0 billion of capital returned to shareholders. Fourth-quarter revenue rose 7% year-on-year to $5.18 billion, driven by higher fee revenue and net interest income, while assets under custody and/or administration reached $59.3 trillion and assets under management $2.2 trillion, underscoring the scale of its franchise. Key profitability metrics also improved, with a 36% pre-tax operating margin, 14.5% return on equity and 26.6% ROTCE in the quarter, supporting management’s view that its multi-year transformation program is delivering results and enabling the company to raise its medium-term financial targets and pursue greater scale and growth across its platforms.

The most recent analyst rating on (BK) stock is a Buy with a $143.00 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 Elects Charles F. Lowrey to Board

On December 9, 2025, BNY Mellon’s Board of Directors elected Charles F. Lowrey as an independent member, effective February 15, 2026, expanding the board to 12 directors. Additionally, the Human Resources and Compensation Committee awarded CEO Robin Vince a $25 million equity award and stock options, recognizing his leadership and commitment to shareholder value. This move underscores the company’s focus on leadership continuity and aligning executive compensation with shareholder interests.

The most recent analyst rating on (BK) stock is a Hold with a $109.00 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 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.