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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 5.99
BK's Cash to Debt is ranked lower than
51% of the 1124 Companies
in the Global Asset Management industry.

( Industry Median: 10000.00 vs. BK: 5.99 )
BK' s 10-Year Cash to Debt Range
Min: 0.49   Max: 7.18
Current: 5.99

0.49
7.18
Equity to Asset 0.10
BK's Equity to Asset is ranked lower than
69% of the 1239 Companies
in the Global Asset Management industry.

( Industry Median: 0.83 vs. BK: 0.10 )
BK' s 10-Year Equity to Asset Range
Min: 0.07   Max: 0.16
Current: 0.1

0.07
0.16
Interest Coverage 10.82
BK's Interest Coverage is ranked lower than
58% of the 1008 Companies
in the Global Asset Management industry.

( Industry Median: 337.31 vs. BK: 10.82 )
BK' s 10-Year Interest Coverage Range
Min: 0.73   Max: 10.82
Current: 10.82

0.73
10.82
F-Score: 4
Z-Score: 0.22
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 24.77
BK's Operating margin (%) is ranked higher than
55% of the 1232 Companies
in the Global Asset Management industry.

( Industry Median: 44.96 vs. BK: 24.77 )
BK' s 10-Year Operating margin (%) Range
Min: -28.85   Max: 56.83
Current: 24.77

-28.85
56.83
Net-margin (%) 14.09
BK's Net-margin (%) is ranked higher than
51% of the 1240 Companies
in the Global Asset Management industry.

( Industry Median: 49.93 vs. BK: 14.09 )
BK' s 10-Year Net-margin (%) Range
Min: -14.16   Max: 44.14
Current: 14.09

-14.16
44.14
ROE (%) 5.63
BK's ROE (%) is ranked higher than
61% of the 1278 Companies
in the Global Asset Management industry.

( Industry Median: 8.20 vs. BK: 5.63 )
BK' s 10-Year ROE (%) Range
Min: -3.74   Max: 33.81
Current: 5.63

-3.74
33.81
ROA (%) 0.56
BK's ROA (%) is ranked lower than
52% of the 1292 Companies
in the Global Asset Management industry.

( Industry Median: 4.26 vs. BK: 0.56 )
BK' s 10-Year ROA (%) Range
Min: -0.51   Max: 2.92
Current: 0.56

-0.51
2.92
ROC (Joel Greenblatt) (%) 224.29
BK's ROC (Joel Greenblatt) (%) is ranked higher than
76% of the 765 Companies
in the Global Asset Management industry.

( Industry Median: 87.54 vs. BK: 224.29 )
BK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -137.83   Max: 330.57
Current: 224.29

-137.83
330.57
Revenue Growth (%) 4.40
BK's Revenue Growth (%) is ranked higher than
69% of the 840 Companies
in the Global Asset Management industry.

( Industry Median: 2.00 vs. BK: 4.40 )
BK' s 10-Year Revenue Growth (%) Range
Min: -11.7   Max: 23.9
Current: 4.4

-11.7
23.9
EBITDA Growth (%) 7.60
BK's EBITDA Growth (%) is ranked higher than
71% of the 765 Companies
in the Global Asset Management industry.

( Industry Median: 2.70 vs. BK: 7.60 )
BK' s 10-Year EBITDA Growth (%) Range
Min: -18.9   Max: 22.5
Current: 7.6

-18.9
22.5
EPS Growth (%) -5.70
BK's EPS Growth (%) is ranked higher than
59% of the 759 Companies
in the Global Asset Management industry.

( Industry Median: 3.60 vs. BK: -5.70 )
BK' s 10-Year EPS Growth (%) Range
Min: -24.4   Max: 23.7
Current: -5.7

-24.4
23.7
» BK's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

BK Guru Trades in Q3 2013

Jim Simons 557,877 sh (New)
HOTCHKIS & WILEY 5,075,607 sh (+84.65%)
NWQ Managers 153,200 sh (+17.86%)
David Dreman 85,598 sh (+6.35%)
Murray Stahl 37,517 sh (+4.4%)
Jean-Marie Eveillard 25,379,043 sh (+1.43%)
Mario Gabelli 6,177,012 sh (+1.14%)
Jeff Auxier 355,754 sh (+0.71%)
John Buckingham 160,042 sh (+0.45%)
John Rogers 113,525 sh (+0.35%)
Charles Brandes 4,554,993 sh (+0.12%)
Warren Buffett 24,652,836 sh (+0.04%)
John Hussman 500,000 sh (unchged)
Yacktman Fund 4,200,000 sh (unchged)
Bill Nygren 5,260,000 sh (unchged)
Yacktman Focused Fund 2,250,000 sh (unchged)
Steven Cohen Sold Out
Ray Dalio Sold Out
Tom Gayner 261,603 sh (-0.36%)
Donald Yacktman 7,761,417 sh (-0.75%)
Chris Davis 86,506,461 sh (-0.85%)
Paul Tudor Jones 20,600 sh (-1.9%)
Dodge & Cox 58,667,454 sh (-1.96%)
Ken Fisher 9,507 sh (-2.73%)
Mason Hawkins 40,568,796 sh (-4.66%)
Tweedy Browne 4,599,980 sh (-6.83%)
First Pacific Advisors 3,918,000 sh (-9.31%)
Steven Romick 3,718,200 sh (-9.46%)
Jeremy Grantham 318,572 sh (-11.12%)
Third Avenue Management 7,616,860 sh (-14.62%)
Chuck Royce 1,360 sh (-20%)
Brian Rogers 200,000 sh (-94.45%)
Martin Whitman 4,114,350 sh (-15.83%)
» More
Q4 2013

BK Guru Trades in Q4 2013

Diamond Hill Capital 5,869 sh (New)
Robert Olstein 105,000 sh (New)
NWQ Managers 158,200 sh (+3.26%)
Murray Stahl 37,917 sh (+1.07%)
Mario Gabelli 6,239,819 sh (+1.02%)
Jean-Marie Eveillard 25,443,943 sh (+0.26%)
First Pacific Advisors 3,927,900 sh (+0.25%)
Chuck Royce 1,360 sh (unchged)
Ken Fisher 9,507 sh (unchged)
Steven Romick 3,718,200 sh (unchged)
Yacktman Fund 4,200,000 sh (unchged)
Jeff Auxier 355,754 sh (unchged)
Warren Buffett 24,652,836 sh (unchged)
Bill Nygren 5,260,000 sh (unchged)
Brian Rogers 200,000 sh (unchged)
Yacktman Focused Fund 2,250,000 sh (unchged)
Jim Simons Sold Out
John Hussman Sold Out
Donald Yacktman 7,754,105 sh (-0.09%)
John Rogers 113,230 sh (-0.26%)
John Buckingham 159,144 sh (-0.56%)
Dodge & Cox 57,967,724 sh (-1.19%)
HOTCHKIS & WILEY 4,929,638 sh (-2.88%)
Mason Hawkins 39,369,655 sh (-2.96%)
Chris Davis 83,323,238 sh (-3.68%)
Third Avenue Management 7,117,407 sh (-6.56%)
Tweedy Browne 4,226,245 sh (-8.12%)
Charles Brandes 4,134,409 sh (-9.23%)
Jeremy Grantham 277,330 sh (-12.95%)
Paul Tudor Jones 13,900 sh (-32.52%)
David Dreman 52,232 sh (-38.98%)
Tom Gayner 111,603 sh (-57.34%)
Martin Whitman 3,929,350 sh (-4.5%)
» More
Q1 2014

BK Guru Trades in Q1 2014

Steven Cohen 13,346 sh (New)
Louis Moore Bacon 500,000 sh (New)
James Barrow 1,046,500 sh (New)
Robert Olstein 213,000 sh (+102.86%)
David Dreman 77,843 sh (+49.03%)
HOTCHKIS & WILEY 6,272,936 sh (+27.25%)
Ken Fisher 11,025 sh (+15.97%)
Dodge & Cox 62,794,463 sh (+8.33%)
Jean-Marie Eveillard 27,018,445 sh (+6.19%)
Bill Nygren 5,560,000 sh (+5.7%)
John Buckingham 163,357 sh (+2.65%)
Mario Gabelli 6,387,482 sh (+2.37%)
NWQ Managers 158,500 sh (+0.19%)
Diamond Hill Capital 5,874 sh (+0.09%)
Louis Moore Bacon 750,000 sh (unchged)
Chuck Royce 1,360 sh (unchged)
Brian Rogers 200,000 sh (unchged)
Yacktman Fund 4,200,000 sh (unchged)
Warren Buffett 24,652,836 sh (unchged)
Murray Stahl 38,417 sh (unchged)
Yacktman Focused Fund 2,250,000 sh (unchged)
Jeff Auxier 355,754 sh (unchged)
Tom Gayner Sold Out
Murray Stahl Sold Out
Tweedy Browne 4,218,175 sh (-0.19%)
Charles Brandes 4,122,590 sh (-0.29%)
John Rogers 112,860 sh (-0.33%)
Donald Yacktman 7,724,703 sh (-0.38%)
Mason Hawkins 36,567,504 sh (-7.12%)
Jeremy Grantham 250,000 sh (-9.85%)
First Pacific Advisors 3,403,300 sh (-13.36%)
Steven Romick 3,205,000 sh (-13.8%)
Chris Davis 71,031,905 sh (-14.75%)
Third Avenue Management 5,296,072 sh (-25.59%)
Paul Tudor Jones 9,500 sh (-31.65%)
Martin Whitman 3,279,350 sh (-16.54%)
» More
Q2 2014

BK Guru Trades in Q2 2014

Yacktman Focused Fund 2,250,000 sh (unchged)
Steven Romick 3,205,000 sh (unchged)
Brian Rogers 200,000 sh (unchged)
Yacktman Fund 4,200,000 sh (unchged)
Ken Fisher 10,637 sh (-3.52%)
Martin Whitman 3,179,350 sh (-3.05%)
» More
» Details

Insider Trades

Latest Guru Trades with BK

» Interactive Charts

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Preferred stocks of Bank of New York Mellon Corp

SymbolPriceYieldDescription
BKNML950.005.20
BKPRC0.005.57Deposit Shs Repr 1/4000 5.2 % Non Cum Pfd Shs Series -C- PDF

Guru Investment Theses on Bank of New York Mellon Corp

Mario Gabelli Comments on Bank of New York Mellon Corp - Jul 25, 2014

The Bank of New York Mellon Corp. (BK) (1.3% of net assets as of June 30, 2014) (BK - $37.48 - NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in over one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 31, 2013, the firm had $27.6 trillion in assets under custody and $1.6 trillion in assets under management. Going forward, we expect BNY Mellon to benefit from rising global incomes and the cross border movement of financial transactions.

From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.

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Third Avenue Management Comments on Bank of New York Mellon - Jul 23, 2014

BNY Mellon (BK) ("BK") participates in two businesses –asset management and investment servicing. The company had $1.6 trillion in assets under management and $27.9 trillion of asset under custody and/or administration, as of March 31, 2014. The businesses seem separable and more valuable on a sum-of-the-parts basis. The asset management business with its iconic Dreyfus Funds and stable of boutique managers could certainly be a stand- alone entity or would seem to attract interest from strategic or financial buyers. BK has been in the news recently given more shareholder scrutiny of its operating efficiency. Recently, there have been news reports that BK could be looking to sell its Corporate Trust unit, which has been a detractor due to the run-off of high-margin securitizations.

From Martin Whitman (Trades, Portfolio)'s 2Q 2014 Shareholder Letters.

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Third Avenue Management Comments on BNY Mellon - Jun 06, 2014

BNY Mellon (BK)("BK") participates in two businesses –asset management and investment servicing. The company had $1.6 trillion in assets under management and $27.9 trillion of asset under custody and/or administration, as of March 31, 2014. The businesses seem separable and more valuable on a sum-of-the-parts basis. The asset management business with its iconic Dreyfus Funds and stable of boutique managers could certainly be a stand- alone entity or would seem to attract interest from strategic or financial buyers. BK has been in the news recently given more shareholder scrutiny of its operating efficiency. recently, there have been news reports that BK could be looking to sell its Corporate Trust unit, which has been a detractor due to the run-off of high-margin securitizations.



From Third Avenue Management (Trades, Portfolio)'s second quarter 2014 shareholder letter.

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Gabelli Asset Management Comments on The Bank of New York Mellon - May 13, 2014

The Bank of New York Mellon Corp. (1.0%) (BK)(BK - $35.29 - NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in over one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 31, 2013, the firm had $27.6 trillion in assets under custody and $1.6 trillion in assets under management. Going forward, we expect BNY Mellon to benefit from rising global incomes and the cross border movement of financial transactions.

From Mario Gabelli (Trades, Portfolio)'s Value 25 Fund first quarter 2014 shareholder commentary.

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Lountzis Asset Management Comments on Bank of New York Mellon - Mar 21, 2014

BANK OF NEW YORK MELLON (BK) is a leading trust bank with assets under custody and management exceeding $27 trillion. They are a global leader in several segments in which it operates. Few competitors have their global reach and scale. Approximately 80% of its revenues are reoccurring and fee-based focused on institutional services with less reliance on the higher credit risk from lending.



In 2013, BK generated operating revenue of $14.9 billion and pre-tax income of $3.7 billion. The bank’s results were helped by their continued efficiency initiatives which generated over $650 million in annual savings. Low interest rates continue to negatively impact results as they have over the past few years. The bank continues to work diligently on its initiatives to cut expenses and selectively raise prices on many of its products. We believe the bank can earn $2.45 in 2014 representing a multiple of just over 13x earnings, while paying a 3% dividend yield.



From Lountzis Asset Management 2013 Annual Letter



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Mario Gabelli Comments on Bank of New York Mellon - Feb 19, 2014

The Bank of New York Mellon Corp. (0.5% of net assets as of December 31, 2013) (BK)($34.94 - NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in over one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of September 30, 2013, the firm had $27.4 trillion in assets under custody and $1.5 trillion of assets under management. Going forward, we expect BNY Mellon to benefit from rising global incomes and the cross border movement of financial transactions.



From the Gabelli Value 25 Fund fourth quarter 2013 commentary.



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Chris Davis Comments on Bank of New York Mellon - Oct 03, 2013

Our largest position is Bank of New York Mellon (BK). Starting with the business, despite having the word “bank” in its name, Bank of New York Mellon is not a bank in the traditional sense but instead primarily provides a range of processing, custody and investment management services to corporations, governments and financial institutions. While absolutely essential, these services are not easily understood by the layman. To use an analogy, if the financial markets are like a thriving city, then Bank of New York Mellon would be the local electric utility, a necessary but unglamorous element of the city’s infrastructure. The two largest segments (comprising approximately 55% of total company earnings) are asset custody (where it holds $26 trillion in assets on behalf of customers) and issuer services (where it acts as trustee for approximately $11 trillion of debt securities and more than 1,300 depository receipt programs). To put these numbers in perspective, the market capitalization of the entire S&P 500® Index is about $15 trillion and the total government debt outstanding (federal, state and local) in the United States is about $20 trillion. Each of these businesses is an oligopoly in which Bank of New York has a leading position with durable competitive advantages derived from economies of scale, the costs of switching and customer loyalty.

In addition to the base fee income earned in its investment services business, the bank generates ancillary revenue from foreign exchange trading, securities lending and the interest rate spread on approximately $220 billion of low cost deposits on which the bank currently pays an average interest rate of less than 0.1%. The “moat” around the investment services businesses is evidenced by the high returns on tangible equity that Bank of New York earns—currently in the mid-20’s and historically in the mid-30’s.

Bank of New York also has a more traditional investment management business that represents approximately 30% of total company’s earnings. This business is made up of a diverse collection of equity, fixed income, alternative asset, and money market management services with an aggregate of $1.4 trillion of assets under management. The investment management business also offers an inherently high return on capital, though the moats surrounding it tend to be lower than for the investment services business. Bank of New York’s diversity of asset classes offers some protection from the ebbs and flows of investor sentiment.

In general, each of the bank’s major businesses should grow in conjunction with the continued increase in the amount and value of debt and equity outstanding globally, with only modest incremental capital needed to support that growth.

In terms of people, CEO Gerald Hassell has held that position since 2011, and prior to that had been president since 1998. Since assuming the role of CEO, he has focused the company on improving operational efficiencies and on the disciplined allocation of capital. Having built up its regulatory capital levels over the last few years to comply with Basel 3 rules (voluntary global regulatory standards developed in response to the global financial crisis of the late 2000’s), Bank of New York is today allocating approximately 70% of earnings to share repurchases and dividends (after already returning some $3 billion to shareholders in the last two years), with the balance retained to support largely organic growth at high incremental rates of return. Given the utility nature of this business, the bank does not need a visionary leader but rather a disciplined one, a description that seems to fit Mr. Hassell. Past leaders have pursued expensive acquisitions and poorly thought-out strategic expansions. Current management seems to understand this well and has wisely set their attention on execution and cost discipline.

As for price, Bank of New York Mellon is valued today at about 13 times this year’s earnings or nearly a 7.5% earning yield. As mentioned above, the majority of these earnings are distributable to shareholders as the company is extremely well capitalized (or will be by the end of this year, depending on some clarification of regulatory standards) and can grow with relatively small amounts of retained capital. Further, we consider these earnings somewhat understated because today’s low interest rates have forced the bank to waive money market fees and have depressed interest margins. We estimate an increase of 100 basis points in interest rates could increase earnings by about 15% and reduce the valuation multiple to only 11 times earnings.

Finally, we must consider the risks. When presenting the rationale for an investment, it is common to hear all the reasons the investment will be successful. As a central part of our investment process, we want to examine all the reasons an investment could fail. With acknowledgement to the wonderful behavioral economist Daniel Kahneman, we refer to this exercise as a “pre-mortem.” For any company, the most dire risks might be called “existential risks.” These are the risks of some event or series of events entirely wiping out existing stockholder value. In recent years, existential risks have tended to be caused by either leverage or obsolescence (usually resulting from technological innovation). Although Bank of New York Mellon is certainly leveraged in that assets significantly exceed equity, these assets are predominately government securities and deposits rather than loans or securities subject to credit risk. In fact, in the draconian stress test laid out by regulators, which assumes a 5% decline in GDP over two years, an unemployment rate of 12%, a stock market decline of 50%, and residential and commercial real estate declines of 20%, Bank of New York Mellon would actually make more than $5 billion before taxes. As for technological obsolescence, the very fact the bank is well into its third century of existence would seem to indicate a relative low risk of obsolescence, which is true. As with an electric utility, the services provided by the bank are essential and irreplaceable.

Although such existential risk is low at Bank of New York Mellon, there are other important risks that could hurt our investment. The largest of these may well be a matter of national security. Although the bank maintains outstanding computer systems and other safeguards, a significant disruption, most likely in the form of a cyber-attack, of the bank’s computer operations could result in substantial losses given the sheer number of transactions processed every hour. At a less esoteric level, the bank is regulated as one of the world’s most significant financial institutions. As such, missteps with the regulators or inappropriate conduct toward customers (as happened several years ago when the bank was accused of pricing foreign exchange trades in a misleading manner) could result in significant fines, legal liability or higher capital requirements. Although the bank operates in an oligopoly in most of its businesses, another risk is that participants in an oligopoly do not always behave rationally. Certainly, in recent years a tendency toward undisciplined pricing has permeated this industry, though we hope this trend is diminishing. Finally, we must consider the possibility of the bank making a large, dilutive acquisition. Despite overwhelming data indicating that such acquisitions rarely create value, we are continually surprised by how often companies are tempted by the siren song of investment bankers. Fortunately, we consider this risk a remote one under current management.

From Chris Davis' David Funds fall 2013 manager commentary.

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Top Ranked Articles about Bank of New York Mellon Corp

Mario Gabelli Comments on Bank of New York Mellon Corp
The Bank of New York Mellon Corp. (BK) (1.3% of net assets as of June 30, 2014) (BK - $37.48 - NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in over one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 31, 2013, the firm had $27.6 trillion in assets under custody and $1.6 trillion in assets under management. Going forward, we expect BNY Mellon to benefit from rising global incomes and the cross border movement of financial transactions. Read more...
Third Avenue Management Comments on Bank of New York Mellon
BNY Mellon (BK) ("BK") participates in two businesses –asset management and investment servicing. The company had $1.6 trillion in assets under management and $27.9 trillion of asset under custody and/or administration, as of March 31, 2014. The businesses seem separable and more valuable on a sum-of-the-parts basis. The asset management business with its iconic Dreyfus Funds and stable of boutique managers could certainly be a stand- alone entity or would seem to attract interest from strategic or financial buyers. BK has been in the news recently given more shareholder scrutiny of its operating efficiency. Recently, there have been news reports that BK could be looking to sell its Corporate Trust unit, which has been a detractor due to the run-off of high-margin securitizations. Read more...
Gabelli Asset Management Comments on The Bank of New York Mellon
The Bank of New York Mellon Corp. (1.0%) (BK)(BK - $35.29 - NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in over one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 31, 2013, the firm had $27.6 trillion in assets under custody and $1.6 trillion in assets under management. Going forward, we expect BNY Mellon to benefit from rising global incomes and the cross border movement of financial transactions. Read more...
Lountzis Asset Management Comments on Bank of New York Mellon
BANK OF NEW YORK MELLON (BK) is a leading trust bank with assets under custody and management exceeding $27 trillion. They are a global leader in several segments in which it operates. Few competitors have their global reach and scale. Approximately 80% of its revenues are reoccurring and fee-based focused on institutional services with less reliance on the higher credit risk from lending. Read more...
Mario Gabelli Comments on Bank of New York Mellon
The Bank of New York Mellon Corp. (0.5% of net assets as of December 31, 2013) (BK)($34.94 - NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in over one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of September 30, 2013, the firm had $27.4 trillion in assets under custody and $1.5 trillion of assets under management. Going forward, we expect BNY Mellon to benefit from rising global incomes and the cross border movement of financial transactions. Read more...
Chris Davis' Top Five Positions
Over the past quarter Chris Davis of Davis Selected Advisers reported a total portfolio of 181 stocks valued at $38.5 billion. The guru purchased 17 new stocks over the quarter. Read more...
Brian Rogers Update - T. Rowe Price High-Impact Sells
The third quarter portfolio update of Brian Rogers, portfolio manager of the T. Rowe Price Equity Income Fund, shows 118 stocks, four of them new. The fund’s total value is $25.9 billion, with a quarter-over-quarter turnover of 2%. The portfolio is currently weighted with top three sectors: financial services at 19.9%, industrials at 15.2% and energy at 15.1%. Guru Brian Rogers has averaged a return of 10.62% over 12 months. Read more...
Chris Davis Comments on Bank of New York Mellon
Our largest position is Bank of New York Mellon (BK). Starting with the business, despite having the word “bank” in its name, Bank of New York Mellon is not a bank in the traditional sense but instead primarily provides a range of processing, custody and investment management services to corporations, governments and financial institutions. While absolutely essential, these services are not easily understood by the layman. To use an analogy, if the financial markets are like a thriving city, then Bank of New York Mellon would be the local electric utility, a necessary but unglamorous element of the city’s infrastructure. The two largest segments (comprising approximately 55% of total company earnings) are asset custody (where it holds $26 trillion in assets on behalf of customers) and issuer services (where it acts as trustee for approximately $11 trillion of debt securities and more than 1,300 depository receipt programs). To put these numbers in perspective, the market capitalization of the entire S&P 500® Index is about $15 trillion and the total government debt outstanding (federal, state and local) in the United States Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.50
BK's P/E(ttm) is ranked higher than
72% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 21.40 vs. BK: 15.50 )
BK' s 10-Year P/E(ttm) Range
Min: 8.11   Max: 42.45
Current: 15.5

8.11
42.45
P/B 1.20
BK's P/B is ranked higher than
56% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 1.05 vs. BK: 1.20 )
BK' s 10-Year P/B Range
Min: 0.64   Max: 4.44
Current: 1.2

0.64
4.44
P/S 3.00
BK's P/S is ranked higher than
85% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 7.43 vs. BK: 3.00 )
BK' s 10-Year P/S Range
Min: 1.46   Max: 6.02
Current: 3

1.46
6.02
PFCF 130.80
BK's PFCF is ranked higher than
67% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 731.40 vs. BK: 130.80 )
BK' s 10-Year PFCF Range
Min: 3.41   Max: 131.7
Current: 130.8

3.41
131.7
EV-to-EBIT -14.81
BK's EV-to-EBIT is ranked lower than
68% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 24.89 vs. BK: -14.81 )
BK' s 10-Year EV-to-EBIT Range
Min: 3.5   Max: 17.2
Current: -14.81

3.5
17.2
PEG 2.90
BK's PEG is ranked higher than
87% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. BK: 2.90 )
BK' s 10-Year PEG Range
Min: 1.52   Max: 28.16
Current: 2.9

1.52
28.16
Shiller P/E 28.80
BK's Shiller P/E is ranked higher than
78% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. BK: 28.80 )
BK' s 10-Year Shiller P/E Range
Min: 7.97   Max: 29
Current: 28.8

7.97
29

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.60
BK's Dividend Yield is ranked lower than
78% of the 1000 Companies
in the Global Asset Management industry.

( Industry Median: 3.16 vs. BK: 1.60 )
BK' s 10-Year Dividend Yield Range
Min: 1.11   Max: 5.26
Current: 1.6

1.11
5.26
Dividend Payout 0.23
BK's Dividend Payout is ranked higher than
87% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. BK: 0.23 )
BK' s 10-Year Dividend Payout Range
Min: 0.09   Max: 10
Current: 0.23

0.09
10
Dividend growth (3y) 17.20
BK's Dividend growth (3y) is ranked higher than
83% of the 450 Companies
in the Global Asset Management industry.

( Industry Median: 6.10 vs. BK: 17.20 )
BK' s 10-Year Dividend growth (3y) Range
Min: -26.9   Max: 17.2
Current: 17.2

-26.9
17.2
Yield on cost (5-Year) 2.19
BK's Yield on cost (5-Year) is ranked lower than
67% of the 988 Companies
in the Global Asset Management industry.

( Industry Median: 3.52 vs. BK: 2.19 )
BK' s 10-Year Yield on cost (5-Year) Range
Min: 1.52   Max: 7.21
Current: 2.19

1.52
7.21
Share Buyback Rate 1.70
BK's Share Buyback Rate is ranked higher than
83% of the 908 Companies
in the Global Asset Management industry.

( Industry Median: -0.70 vs. BK: 1.70 )
BK' s 10-Year Share Buyback Rate Range
Min: 3.1   Max: -17.7
Current: 1.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.20
BK's Price/Tangible Book is ranked higher than
51% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 1.14 vs. BK: 3.20 )
BK' s 10-Year Price/Tangible Book Range
Min: 1.37   Max: 11.2
Current: 3.2

1.37
11.2
Price/DCF (Projected) 1.00
BK's Price/DCF (Projected) is ranked higher than
85% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 13.43 vs. BK: 1.00 )
BK' s 10-Year Price/DCF (Projected) Range
Min: 0.43   Max: 5.15
Current: 1

0.43
5.15
Price/Median PS Value 0.80
BK's Price/Median PS Value is ranked higher than
88% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 1.37 vs. BK: 0.80 )
BK' s 10-Year Price/Median PS Value Range
Min: 0.43   Max: 4
Current: 0.8

0.43
4
Price/Graham Number 1.30
BK's Price/Graham Number is ranked higher than
67% of the 1485 Companies
in the Global Asset Management industry.

( Industry Median: 1.88 vs. BK: 1.30 )
BK' s 10-Year Price/Graham Number Range
Min: 0.89   Max: 3.55
Current: 1.3

0.89
3.55
Earnings Yield (Greenblatt) 6.50
BK's Earnings Yield (Greenblatt) is ranked higher than
58% of the 1101 Companies
in the Global Asset Management industry.

( Industry Median: 8.00 vs. BK: 6.50 )
BK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.8   Max: 28.5
Current: 6.5

5.8
28.5
Forward Rate of Return (Yacktman) 4.24
BK's Forward Rate of Return (Yacktman) is ranked higher than
79% of the 1048 Companies
in the Global Asset Management industry.

( Industry Median: 0.97 vs. BK: 4.24 )
BK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.5   Max: 21.4
Current: 4.24

4.5
21.4

Business Description

Industry: Asset Management » Asset Management
Compare:AMP, AMG, BEN, BLK, TTS » details
Traded in other countries:BN9.Germany, BKNML.USA
Bank of New York Mellon Corporation was originally formed as a holding company for The Bank of New York Mellon. With its predecessors, the Company has been in business since 1784. On July 1, 2007, The Bank of New York Company, Inc. and Mellon Financial Corporation merged into The Bank of New York Mellon Corporation, with The Bank of New York Mellon Corporation being the surviving entity. It is a global financial services company. The Company's two principal banks are: The Bank of New York Mellon, a New York state chartered bank, formerly named 'The Bank of New York', which houses its institutional businesses, including Asset Servicing, Issuer Services, Treasury Services, Broker-Dealer and Advisor Services and the bank-advised business of Asset Management. The Company's U.S. bank subsidiaries are engaged in trust and custody activities, investment management services, banking services and various securities-related activities. The deposits of the U.S. banking subsidiaries are insured by the Federal Deposit Insurance Corporation to the extent provided by law. The Company has two U.S. trust companies - The Bank of New York Mellon Trust Company, National Association and BNY Mellon Trust Company of Illinois. The Company divides its businesses into seven segments: Asset Management; Wealth Management; Asset Servicing; Issuer Services; Clearing Services; Treasury Services and Other. It uses trademark, trade secret, copyright and other proprietary rights and procedures to protect its intellectual property and technology resources.
» More Articles for BK

Headlines

Articles On GuruFocus.com
Weekly CFO Sells Highlight: Intel Corp, ManpowerGroup, Bank of New York Mellon Corp. Jul 26 2014 
Mario Gabelli Comments on Bank of New York Mellon Corp Jul 25 2014 
Why This Leading Servicer and Manager of Financial Assets Worldwide Will Sustain Its Bullish Trend Jul 25 2014 
Third Avenue Management Comments on Bank of New York Mellon Jul 23 2014 
Third Avenue Management Comments on BNY Mellon Jun 06 2014 
Davis Selected Advisers Chris Davis' Top Five Holdings for the First Quarter May 13 2014 
Gabelli Asset Management Comments on The Bank of New York Mellon May 13 2014 
9 CEOs Showing Confidence by Increasing Dividends Apr 14 2014 
BNY Mellon Is Set to Take Full Control of New York-Based HedgeMark International Apr 01 2014 
Lountzis Asset Management Comments on Bank of New York Mellon Mar 21 2014 


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