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

• Market Cap: $64.62B
• Dividend Yield: 2.08%
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.95
• Revenue Growth: 10.30%
• EPS Growth: 49.77%
• Country: US
• Employees: 51,000
• Sector: Financial
• Sector Strength: 83
• Industry: Asset Management
• EPS (TTM): 1.58
• Shares Outstanding: 715,434,270
• 10 Day Avg. Volume: 3,227,556
• 30 Day Avg. Volume: 3,722,848
• PEG Ratio: 2.33
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.85
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $93.30
• Price Target Upside: 3.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $94.00 ▲(4.07%Upside)

BNY Mellon scores well due to robust financial performance and strategic initiatives that enhance operational efficiency and client engagement. The stock's fair valuation and attractive dividend yield add to its appeal, though technical indicators suggest caution for potential short-term fluctuations. Overall, BNY Mellon is well-positioned for continued growth, but careful liquidity management remains essential.

Positive Factors

Business Transformation

Management outlined expectations for 100% of the firm transitioning to its 'Platforms Operating Model' by next year, which should deliver revenue/expense synergies and drive an improved level of franchise profitability over the medium to long term.

Growth Opportunities

The CEO letter focuses on growth opportunities including capital markets, private markets, digital/new assets, high net worth, and leveraging its top-tier clients for more growth.

Management Guidance

Management reiterated full-year guidance for a fourth consecutive year of positive operating leverage.

Negative Factors

Fee Operating Leverage

Fee operating leverage is unlikely as Investment & Wealth Mgmt revenue outlook is lowered.

Revenue Growth Uncertainty

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

Revenue Outlook

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

Bank of New York Mellon Corporation 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 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
18.60B	18.26B	17.29B	16.03B	15.63B	15.47B
	Gross Profit
18.52B	18.26B	17.29B	16.03B	15.63B	15.47B
	EBIT
6.25B	7.39B	6.49B	8.52B	4.64B	4.46B
	EBITDA
7.22B	7.39B	5.84B	4.96B	6.51B	6.10B
	Net Income Common Stockholders
4.72B	4.53B	3.29B	2.57B	3.76B	3.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	200.61B	238.93B	225.56B	266.75B	313.01B
	Total Assets
440.69B	416.06B	409.88B	405.78B	444.44B	469.63B
	Total Debt
32.74B	45.44B	46.24B	43.19B	38.25B	37.64B
	Net Debt
-83.80B	-56.49B	-78.95B	-64.17B	-83.09B	-124.52B
	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: 90.32
• 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 90.32 is above the 20-day moving average (MA) of 88.91, above the 50-day MA of 83.07, and above the 200-day MA of 78.77, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 50.11 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	$20.54B	10.58	19.47%	5.29%	6.51%	4.52%
AMP	79 Outperform	$48.41B	17.27	58.11%	1.16%	9.14%	0.05%
BK	77 Outperform	$64.62B	14.72	11.29%	2.08%	10.30%	49.77%
NTRS	73 Outperform	$20.99B	10.07	17.54%	2.78%	21.00%	137.62%
KKR	70 Neutral	$109.91B	53.50	9.03%	0.57%	-27.45%	-46.67%
STT	65 Neutral	$28.12B	11.08	11.21%	3.01%	15.02%	66.71%
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%

Bank of New York Mellon Corporation Corporate Events

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.