It hasn't been a great afternoon session for Bank of Nova Scotia investors, who have watched their shares sink by -1.6% to a price of $50.88. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Bank of Nova Scotia's Earnings and Assets May Be Undervalued:
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. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 20.04 and an average price to book (P/B) ratio of 1.86. In contrast, Bank of Nova Scotia has a trailing 12 month P/E ratio of 12.5 and a P/B ratio of 0.77.
Bank of Nova Scotia has moved 11.0% over the last year compared to 23.6% for the S&P 500 — a difference of -12.7%. Bank of Nova Scotia has a 52 week high of $57.07 and a 52 week low of $43.68.
A Declining EPS Growth Trend and Positive Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,968 | $7,505 | $7,687 | $7,626 | $8,272 | $8,364 |
| Interest Income (M) | $3,916 | $2,394 | $1,969 | $6,496 | $10,443 | $10,821 |
| Net Margins | 28% | 25% | 33% | 27% | 16% | 23% |
| Net Income (M) | $2,308 | $1,899 | $2,559 | $2,093 | $1,354 | $1,912 |
| Depreciation & Amort. (M) | $271 | $407 | $383 | $394 | $590 | $428 |
| Earnings Per Share | $1.73 | $1.42 | $1.97 | $1.63 | $0.99 | $1.41 |
| EPS Growth | n/a | -17.92% | 38.73% | -17.26% | -39.26% | 42.42% |
| Free Cash Flow (M) | -$12,025 | $56,664 | -$12,807 | $16,943 | $31,724 | $7,113 |
