Bank Of Nova Scotia (BNS) AI Stock Analysis

• Market Cap: $123.81B
• Dividend Yield: 4.32%
• Average Volume (3M): 4.09M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.66
• Revenue Growth: -3.65%
• EPS Growth: -1.73%
• Country: CA
• Employees: 88,722
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.93
• Shares Outstanding: 1,232,534,000
• 10 Day Avg. Volume: 3,602,288
• 30 Day Avg. Volume: 4,089,053
• PEG Ratio: -8.73
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 11.28
• Enterprise Value/Market Cap: 3.01
• Enterprise Value/Revenue: 6.03
• Enterprise Value/Gross Profit: 13.03
• Enterprise Value/Ebitda: 29.01
• 1Y Price Target: $112.55
• Price Target Upside: 12.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.07
• Revenue Forecast (FY): $39.52B

• Rating: 62 Neutral
• Price Target: C$106.00 ▲(5.53% Upside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is driven primarily by mixed financial performance—solid profitability but pressured by a sharp TTM revenue decline, high leverage, and volatile/free-cash-flow deterioration. Valuation is a relative support due to a mid-range P/E and strong dividend yield. Technicals are neutral-to-mixed, and the earnings call was broadly positive on guidance and efficiency, tempered by elevated credit losses and Canadian banking pressure.

Positive Factors

Diversified Business Model

Scotiabank's diversified business mix—personal/commercial banking, wealth, capital markets and sizeable international operations—reduces reliance on any single revenue stream. This structural breadth supports more stable earnings through cycles and provides multiple organic growth levers over the next 2–6 months.

Improving Profitability and ROE

Sustained EPS growth and a meaningful ROE uplift indicate improving core profitability and management execution. Higher ROE reflects better capital use and supports capacity for reinvestment and shareholder returns, underpinning medium-term earnings resiliency despite macro variability.

Capital Position and Shareholder Actions

A CET1 of 13.2% post buybacks signals a healthy regulatory capital buffer while enabling disciplined capital returns. This balance of capital strength and shareholder-friendly actions supports strategic flexibility for investments, M&A or further buybacks without immediate capital strain.

Negative Factors

Top-line Contraction

A near-15% TTM revenue decline is a structural concern: persistent top-line weakness constrains operating leverage and the ability to sustain margins long-term. Unless revenue growth re-accelerates, profitability gains risk being transitory as cost base and credit volatility can offset margin improvements.

High Leverage

Elevated leverage typical of banking is notable here given rising debt versus prior year. Higher debt-to-equity increases sensitivity to funding stress and interest rate moves, constraining strategic flexibility and amplifying profit volatility if credit costs or funding premiums rise over the medium term.

Free Cash Flow Volatility

Large swings in free cash flow—despite a positive TTM level—undermine predictability of internal funding for growth and dividends. Persistent volatility reduces confidence in cash-driven strategic moves and heightens refinancing and liquidity planning risks across economic cycles.

Bank Of Nova Scotia Business Overview & Revenue Model

Company Description

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates in four segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses, including automotive financing solutions to dealers and their customers. It also provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds. In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers. Further, it provides online, mobile, and telephone banking services. The company operates a network of 954 branches and approximately 3,766 automated banking machines in Canada; and approximately 1,300 branches and a network of contact and support center internationally. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

How the Company Makes Money

Scotiabank generates revenue through multiple key streams. The primary source is net interest income, which arises from the difference between interest earned on loans and interest paid on deposits. This includes personal loans, mortgages, and commercial lending. Additionally, the bank earns substantial fees from wealth management services, investment banking activities, and transaction-based services such as account maintenance and credit card fees. Scotiabank also benefits from trading and investment income derived from its capital markets division, which engages in trading securities and providing advisory services. Collaborations with other financial institutions and technology partners enhance Scotiabank's service offerings and operational efficiencies, contributing to its overall revenue generation. Furthermore, the bank's international operations, particularly in growth markets, provide additional avenues for earnings, helping to diversify its revenue base.

Bank Of Nova Scotia Financial Statement Overview

Summary

Fundamentals are profitable but uneven. Income statement profitability is solid (TTM net margin ~16%, EBIT margin ~21%) and net income improved, but TTM revenue declined sharply (-14.8%). Balance sheet leverage remains high (TTM debt-to-equity ~2.9x) with mid-range ROE (~10%). Cash flow is positive (TTM FCF ~$5.1B) but highly volatile, with a steep TTM FCF drop (-73.5%) year-over-year.

Income Statement

Profitability is solid for a diversified bank: TTM (Trailing-Twelve-Months) net margin is ~16% with EBIT margin ~21%, and net income improved versus FY2025 ($8.9B vs. $7.8B). However, the top line is the key weakness—TTM (Trailing-Twelve-Months) revenue fell sharply (-14.8%), and profitability has been uneven over the period (margins notably lower in FY2025 vs. FY2022–FY2024). Overall: good earnings power, but recent revenue contraction and margin variability temper the score.

Balance Sheet

The balance sheet reflects typical bank leverage, but it is still meaningfully debt-heavy: TTM (Trailing-Twelve-Months) debt-to-equity is ~2.9x, with total debt up versus FY2025. Equity has grown modestly over time, and returns are steady but not exceptional, with TTM (Trailing-Twelve-Months) return on equity around ~10% (up from ~9% in FY2025, below the ~13.5% seen in FY2021–FY2022). Strength is stability in equity and assets; the trade-off is elevated leverage and mid-range returns.

Cash Flow

Cash generation is currently positive, with TTM (Trailing-Twelve-Months) free cash flow of ~$5.1B and free cash flow close to net income (~0.90x). The main concern is volatility and deterioration: TTM (Trailing-Twelve-Months) free cash flow dropped steeply (-73.5%) versus the prior year, and history shows large swings (including negative operating and free cash flow in FY2021, and an unusually high free cash flow year in FY2023). This profile supports liquidity, but the variability reduces confidence in consistency.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	61.80B	73.18B	29.48B	31.79B	31.15B	30.91B
Gross Profit	28.61B	32.38B	29.56B	31.79B	31.15B	30.91B
EBITDA	12.85B	10.56B	10.56B	0.00	14.20B	14.00B
Net Income	8.93B	7.79B	7.76B	7.41B	9.92B	9.62B
Balance Sheet
Total Assets	1.48T	1.46T	1.41T	1.41T	1.35T	1.18T
Cash, Cash Equivalents and Short-Term Investments	8.73B	108.10B	108.17B	140.83B	119.31B	120.05B
Total Debt	255.68B	236.69B	300.67B	313.81B	310.86B	245.66B
Total Liabilities	1.39T	1.37T	1.33T	1.33T	1.27T	1.11T
Stockholders Equity	87.59B	86.87B	82.37B	76.93B	73.22B	70.80B
Cash Flow
Free Cash Flow	5.05B	10.14B	15.16B	31.28B	16.37B	-13.27B
Operating Cash Flow	5.62B	10.49B	15.65B	11.47B	16.94B	-12.81B
Investing Cash Flow	-67.44B	-19.00B	-7.45B	-30.04B	-11.29B	14.70B
Financing Cash Flow	60.81B	9.18B	-8.84B	16.71B	-4.58B	-2.78B

Bank Of Nova Scotia Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 100.45
• 50DMA: Negative
• 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 TSE:BNS, the sentiment is Neutral. The current price of 100.45 is below the 20-day moving average (MA) of 103.80, below the 50-day MA of 102.24, and above the 200-day MA of 87.43, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 27.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BNS.

Bank Of Nova Scotia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RY	69 Neutral	$317.02B	13.71	15.48%	2.58%	2.13%	25.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TD	67 Neutral	$227.58B	13.22	17.76%	3.34%	3.07%	144.41%
CM	64 Neutral	$127.22B	9.41	14.85%	3.07%	-3.13%	18.22%
BNS	62 Neutral	$123.81B	14.70	10.39%	4.32%	-3.65%	-1.73%
BMO	62 Neutral	C$138.87B	13.18	10.53%	3.61%	-1.30%	20.41%
NA	58 Neutral	C$74.17B	12.62	13.53%	2.64%	7.50%	-5.28%

Bank Of Nova Scotia Corporate Events

Scotiabank Kicks Off 2026 With Strong Q1 Earnings and Broad-Based Growth

Scotiabank reported a strong start to 2026, with first-quarter net income rising to $2.3 billion from $993 million a year earlier, largely reflecting the absence of prior-year impairment charges tied to its exit from certain Latin American operations. On an adjusted basis, net income climbed to $2.7 billion and diluted EPS rose to $2.05, driving adjusted return on equity to 13% and supported by a robust Common Equity Tier 1 capital ratio of 13.3%.

The bank posted earnings growth across all core businesses, with Canadian Banking and International Banking both benefiting from margin expansion and positive operating leverage, while Global Wealth Management saw an 18% increase in adjusted earnings and 10% growth in assets under management. Global Banking and Markets also delivered higher earnings on strong fee-based and capital markets activity, and management signaled confidence in achieving a return on equity above 14% by 2027, reinforcing its medium-term performance targets and competitive positioning.

The most recent analyst rating on (TSE:BNS) stock is a Hold with a C$106.00 price target. To see the full list of analyst forecasts on Bank Of Nova Scotia stock, see the TSE:BNS Stock Forecast page.

Scotiabank Declares Quarterly Dividend and Maintains Market-Based DRIP Purchases

Scotiabank has declared a quarterly dividend of $1.10 per common share, payable on April 28, 2026, to shareholders of record as of April 7, 2026. The bank continues to offer a dividend reinvestment option through its Shareholder Dividend and Share Purchase Plan, allowing investors to receive dividends in common shares instead of cash.

Under the plan, Scotiabank will maintain its current approach of discontinuing the issuance of new common shares from treasury, with all shares for the plan to be purchased on the secondary market by Computershare Trust Company of Canada. By covering all brokerage commissions and service charges associated with these purchases, the bank signals a shareholder-friendly stance while avoiding dilution of existing equity holders.

The most recent analyst rating on (TSE:BNS) stock is a Hold with a C$106.00 price target. To see the full list of analyst forecasts on Bank Of Nova Scotia stock, see the TSE:BNS Stock Forecast page.

Scotiabank Projects Up to CAD $89 Million Q1 Boost from KeyCorp Stake

Scotiabank said it expects to record approximately CAD $81 million in net income in its first quarter of 2026 from its ownership stake in U.S. regional lender KeyCorp, reflecting its share of KeyCorp’s fourth-quarter 2025 results after funding costs and acquisition-related and accounting impacts, reported on a one-month lag. Excluding an estimated CAD $8 million in amortization of acquired intangible assets, the adjusted net income contribution from KeyCorp is projected to be about CAD $89 million, offering investors early visibility into a meaningful earnings contribution ahead of Scotiabank’s first-quarter results release and conference call scheduled for February 24, 2026.

The most recent analyst rating on (TSE:BNS) stock is a Buy with a C$102.18 price target. To see the full list of analyst forecasts on Bank Of Nova Scotia stock, see the TSE:BNS Stock Forecast page.