Bank of New York Mellon Corp (BK) Stock Analysis
Bank of New York Mellon Corp (BK) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
Bank of New York Mellon Corp faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 25.8% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 25.8% provides financial flexibility for growth and shareholder returns.
Explore Bank of New York Mellon Corp: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Bank of New York Mellon Corp earns N/A ROIC
Bank of New York Mellon Corp's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-10-31.
| Metric | BK | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 12.1% | Adequate | Moderate equity returns |
Cash Flow: Bank of New York Mellon Corp generates $5.2B FCF at 25.8% margin, positive NaN/8 quarters
Bank of New York Mellon Corp generated $5.2B in free cash flow (TTM), a 25.8% FCF margin, a margin that ranks Top 50% in Financials. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | BK | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 25.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $5.2B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Bank of New York Mellon Corp at 0.0x leverage
Bank of New York Mellon Corp's debt-to-equity ratio of 0.0x reflects conservative leverage. Net cash position of $6.0B provides financial flexibility. Source: 10-Q filed 2025-10-31.
| Metric | BK | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
| Net Cash Position | $6.0B | Excellent | Net cash positive |
Valuation: Bank of New York Mellon Corp trades at 15.5x earnings
Bank of New York Mellon Corp trades at a P/E of 15.5x. Free cash flow yield of 6.3% offers attractive cash returns relative to price.
| Metric | BK | Rating | Context |
|---|---|---|---|
| P/E Ratio | 15.5x | Adequate | Reasonable valuation |
| EV/Sales | 3.8x | Good | Growth premium priced in |
| FCF Yield | 6.3% | Good | Attractive cash return |
| Dividend Yield | 1.8% | Adequate | Growth focus over income |
Capital Allocation: Bank of New York Mellon Corp returns 6.0% shareholder yield
Bank of New York Mellon Corp's total shareholder yield is 6.0% (dividends 1.8% + buybacks 4.3%). Source: 10-Q filed 2025-10-31.
| Metric | BK | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 6.0% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 4.3% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $5.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 25.8% | Top 50% | 1.2x above |
| Return on Equity (ROE) | 12.1% | Top 50% | 1.2x above |
| P/E Ratio | 15.5x | N/A | - |
Financial Scorecard
| Metric | BK | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 25.8% | Excellent | Top 50% of sector (median: 21.7%) |
| Debt to Equity Ratio | 4.5% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 15.5x | Adequate | Fair value |
| Free Cash Flow Yield | 6.3% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is Bank of New York Mellon Corp's Return on Invested Capital (ROIC)?
Bank of New York Mellon Corp (BK) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Bank of New York Mellon Corp's Free Cash Flow Margin?
Bank of New York Mellon Corp (BK) has a free cash flow margin of 25.8%, generating $5.2 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Bank of New York Mellon Corp stock overvalued or undervalued?
Bank of New York Mellon Corp (BK) trades at a P/E ratio of 15.5x, which is above the sector median of N/A. The EV/Sales multiple is 3.8x. Free cash flow yield is 6.3%, which represents an attractive cash return to investors.
Q: Does Bank of New York Mellon Corp pay a dividend?
Bank of New York Mellon Corp (BK) currently pays a dividend yield of 1.8%. Including share buybacks, the total shareholder yield is 6.0%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is Bank of New York Mellon Corp's revenue and earnings growth?
Bank of New York Mellon Corp (BK) grew revenue by 7.8% year-over-year. Earnings per share increased by 27.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is Bank of New York Mellon Corp buying back stock?
Bank of New York Mellon Corp (BK) repurchased $3.5 billion of stock over the trailing twelve months. This represents a buyback yield of 4.3%.
Q: How does Bank of New York Mellon Corp compare to competitors in Financials?
Compared to other companies in Financials, Bank of New York Mellon Corp (BK) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 25.8% exceeds the sector median of 21.7% (Top 41% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Bank of New York Mellon Corp?
Bank of New York Mellon Corp (BK) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.