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Also traded in: Argentina, Brazil, Germany, Mexico

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 : 4/10

vs
industry
vs
history
Cash-to-Debt 2.85
NYSE:BK's Cash-to-Debt is ranked lower than
65% of the 1171 Companies
in the Global Asset Management industry.

( Industry Median: 480.00 vs. NYSE:BK: 2.85 )
Ranked among companies with meaningful Cash-to-Debt only.
NYSE:BK' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.6  Med: 1.68 Max: 7.35
Current: 2.85
0.6
7.35
Equity-to-Asset 0.11
NYSE:BK's Equity-to-Asset is ranked lower than
93% of the 1023 Companies
in the Global Asset Management industry.

( Industry Median: 0.76 vs. NYSE:BK: 0.11 )
Ranked among companies with meaningful Equity-to-Asset only.
NYSE:BK' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.06  Med: 0.1 Max: 0.15
Current: 0.11
0.06
0.15
Debt-to-Equity 0.77
NYSE:BK's Debt-to-Equity is ranked lower than
71% of the 570 Companies
in the Global Asset Management industry.

( Industry Median: 0.33 vs. NYSE:BK: 0.77 )
Ranked among companies with meaningful Debt-to-Equity only.
NYSE:BK' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.52  Med: 0.82 Max: 1.52
Current: 0.77
0.52
1.52
Debt-to-EBITDA 1.95
NYSE:BK's Debt-to-EBITDA is ranked higher than
59% of the 498 Companies
in the Global Asset Management industry.

( Industry Median: 2.90 vs. NYSE:BK: 1.95 )
Ranked among companies with meaningful Debt-to-EBITDA only.
NYSE:BK' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0
Current: 1.95
Beneish M-Score: -2.60
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 : 3/10

vs
industry
vs
history
Net Margin % 26.69
NYSE:BK's Net Margin % is ranked higher than
56% of the 1046 Companies
in the Global Asset Management industry.

( Industry Median: 20.33 vs. NYSE:BK: 26.69 )
Ranked among companies with meaningful Net Margin % only.
NYSE:BK' s Net Margin % Range Over the Past 10 Years
Min: -14.1  Med: 17.73 Max: 27.04
Current: 26.69
-14.1
27.04
ROE % 9.85
NYSE:BK's ROE % is ranked higher than
72% of the 1154 Companies
in the Global Asset Management industry.

( Industry Median: 4.20 vs. NYSE:BK: 9.85 )
Ranked among companies with meaningful ROE % only.
NYSE:BK' s ROE % Range Over the Past 10 Years
Min: -4.79  Med: 7.64 Max: 9.94
Current: 9.85
-4.79
9.94
ROA % 1.18
NYSE:BK's ROA % is ranked lower than
55% of the 1186 Companies
in the Global Asset Management industry.

( Industry Median: 1.87 vs. NYSE:BK: 1.18 )
Ranked among companies with meaningful ROA % only.
NYSE:BK' s ROA % Range Over the Past 10 Years
Min: -0.48  Med: 0.85 Max: 1.16
Current: 1.18
-0.48
1.16
3-Year Revenue Growth Rate 6.00
NYSE:BK's 3-Year Revenue Growth Rate is ranked lower than
52% of the 843 Companies
in the Global Asset Management industry.

( Industry Median: 3.70 vs. NYSE:BK: 6.00 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
NYSE:BK' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -11.6  Med: 3.9 Max: 22.5
Current: 6
-11.6
22.5
3-Year EPS without NRI Growth Rate 14.20
NYSE:BK's 3-Year EPS without NRI Growth Rate is ranked higher than
70% of the 723 Companies
in the Global Asset Management industry.

( Industry Median: 6.60 vs. NYSE:BK: 14.20 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
NYSE:BK' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 0  Med: 12.5 Max: 160.4
Current: 14.2
0
160.4
GuruFocus has detected 2 Warning Signs with Bank of New York Mellon Corp NYSE:BK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» NYSE:BK's 30-Y Financials

Financials (Next Earnings Date: 2019-04-19)


Revenue & Net Income
Equity & Asset
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q1 2018

BK Guru Trades in Q1 2018

George Soros 260,066 sh (New)
Steven Cohen 463,610 sh (New)
Barrow, Hanley, Mewhinney & Strauss 2,281,164 sh (New)
Warren Buffett 62,191,448 sh (+2.26%)
Joel Greenblatt 22,447 sh (+23.09%)
John Buckingham 123,742 sh (+1.76%)
Paul Tudor Jones 102,536 sh (+695.78%)
Jim Simons 501,577 sh (+3.77%)
Bill Nygren 6,320,000 sh (unchged)
Robert Olstein 125,000 sh (unchged)
Third Avenue Management 1,088,443 sh (unchged)
Yacktman Fund 2,500,000 sh (unchged)
Tweedy Browne Global Value 1,315,780 sh (unchged)
Ken Fisher Sold Out
Tom Russo Sold Out
First Pacific Advisors Sold Out
David Dreman 43,013 sh (-5.07%)
Third Avenue Value Fund 867,523 sh (-34.67%)
T Rowe Price Equity Income Fund 3,270,000 sh (-5.76%)
Tweedy Browne 4,411,873 sh (-1.39%)
First Eagle Investment 19,084,772 sh (-2.54%)
Dodge & Cox 44,917,941 sh (-1.46%)
Charles Brandes 2,048,175 sh (-5.68%)
John Rogers 103,166 sh (-0.06%)
Chris Davis 19,143,658 sh (-2.01%)
Murray Stahl 32,354 sh (-6.98%)
HOTCHKIS & WILEY 1,048,715 sh (-1.93%)
Yacktman Asset Management 3,650,446 sh (-1.82%)
Jeff Auxier 281,029 sh (-3.67%)
Diamond Hill Capital 31,784 sh (-9.80%)
Pioneer Investments 2,354,823 sh (-0.34%)
Mario Gabelli 4,713,894 sh (-6.17%)
Yacktman Focused Fund 650,000 sh (-7.14%)
» More
Q2 2018

BK Guru Trades in Q2 2018

Ken Fisher 4,640 sh (New)
Caxton Associates 75,000 sh (New)
Warren Buffett 64,800,376 sh (+4.19%)
George Soros 265,600 sh (+2.13%)
John Buckingham 124,021 sh (+0.23%)
Diamond Hill Capital 31,954 sh (+0.53%)
Barrow, Hanley, Mewhinney & Strauss 4,444,512 sh (+94.84%)
Third Avenue Value Fund 867,523 sh (unchged)
Robert Olstein 125,000 sh (unchged)
Yacktman Focused Fund 650,000 sh (unchged)
Bill Nygren 6,320,000 sh (unchged)
Joel Greenblatt Sold Out
Steven Cohen Sold Out
T Rowe Price Equity Income Fund 3,150,000 sh (-3.67%)
Tweedy Browne 4,317,528 sh (-2.14%)
First Eagle Investment 19,052,184 sh (-0.17%)
Dodge & Cox 44,119,591 sh (-1.78%)
Charles Brandes 1,984,023 sh (-3.13%)
John Rogers 103,130 sh (-0.03%)
Chris Davis 18,889,490 sh (-1.33%)
Murray Stahl 31,968 sh (-1.19%)
HOTCHKIS & WILEY 1,035,815 sh (-1.23%)
Third Avenue Management 781,948 sh (-28.16%)
Yacktman Asset Management 3,420,236 sh (-6.31%)
Paul Tudor Jones 4,211 sh (-95.89%)
Pioneer Investments 2,235,073 sh (-5.09%)
Mario Gabelli 4,421,653 sh (-6.20%)
Yacktman Fund 2,300,000 sh (-8.00%)
Tweedy Browne Global Value 1,306,916 sh (-0.67%)
Jeff Auxier 273,904 sh (-2.54%)
Jim Simons 109,477 sh (-78.17%)
» More
Q3 2018

BK Guru Trades in Q3 2018

First Eagle Investment 19,061,204 sh (+0.05%)
Barrow, Hanley, Mewhinney & Strauss 14,550,632 sh (+227.38%)
Diamond Hill Capital 32,037 sh (+0.26%)
Jim Simons 168,077 sh (+53.53%)
HOTCHKIS & WILEY 1,635,715 sh (+57.92%)
Warren Buffett 77,849,476 sh (+20.14%)
Paul Tudor Jones 39,202 sh (+830.94%)
John Buckingham 124,395 sh (+0.30%)
Tweedy Browne Global Value 1,306,916 sh (unchged)
Yacktman Fund 2,300,000 sh (unchged)
Yacktman Focused Fund 650,000 sh (unchged)
Robert Olstein 125,000 sh (unchged)
Bill Nygren 6,320,000 sh (unchged)
Ken Fisher Sold Out
Caxton Associates Sold Out
Third Avenue Value Fund 518,848 sh (-40.19%)
T Rowe Price Equity Income Fund 3,050,000 sh (-3.17%)
Mario Gabelli 4,226,347 sh (-4.42%)
Yacktman Asset Management 3,419,110 sh (-0.03%)
Charles Brandes 1,953,927 sh (-1.52%)
Third Avenue Management 651,082 sh (-16.74%)
Chris Davis 17,537,478 sh (-7.16%)
John Rogers 103,076 sh (-0.05%)
Pioneer Investments 1,903,865 sh (-14.82%)
Tweedy Browne 4,232,940 sh (-1.96%)
Murray Stahl 31,047 sh (-2.88%)
George Soros 90,510 sh (-65.92%)
Jeff Auxier 269,179 sh (-1.73%)
Dodge & Cox 43,947,951 sh (-0.39%)
» More
Q4 2018

BK Guru Trades in Q4 2018

Yacktman Asset Management 3,623,469 sh (+5.98%)
First Eagle Investment 19,393,104 sh (+1.74%)
Murray Stahl 31,052 sh (+0.02%)
Dodge & Cox 50,269,750 sh (+14.38%)
Warren Buffett 80,937,250 sh (+3.97%)
Barrow, Hanley, Mewhinney & Strauss 14,843,432 sh (+2.01%)
Bill Nygren 6,920,000 sh (+9.49%)
Third Avenue Value Fund 518,848 sh (unchged)
Tweedy Browne Global Value 1,306,916 sh (unchged)
Yacktman Fund 2,300,000 sh (unchged)
Yacktman Focused Fund 650,000 sh (unchged)
Jim Simons Sold Out
Third Avenue Management Sold Out
Paul Tudor Jones Sold Out
T Rowe Price Equity Income Fund 2,710,000 sh (-11.15%)
Mario Gabelli 3,967,574 sh (-6.12%)
Tweedy Browne 4,215,736 sh (-0.41%)
Robert Olstein 102,000 sh (-18.40%)
Charles Brandes 1,787,143 sh (-8.54%)
Diamond Hill Capital 24,143 sh (-24.64%)
Chris Davis 17,462,483 sh (-0.43%)
HOTCHKIS & WILEY 1,593,615 sh (-2.57%)
Jeff Auxier 264,304 sh (-1.81%)
John Rogers 100,651 sh (-2.35%)
Pioneer Investments 1,542,331 sh (-18.99%)
George Soros 67,845 sh (-25.04%)
» More
» Details

Insider Trades

Latest Guru Trades with NYSE:BK

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

Guru Date Action
Impact Price Range
(Average)*
Change from Average Comment Current Shares
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Preferred stocks of Bank of New York Mellon Corp

SymbolPriceYieldDescription
BKNML.PFD950.005.20
BKpC.PFD24.895.22Deposit Shs Repr 1/4000 5.2 % Non Cum Pfd Shs Series -C- PDF

Business Description

Industry: Asset Management » Asset Management    NAICS: 523920    SIC: 6282
Compare:NYSE:BX, NYSE:STT, OSTO:INVE B, XMCE:CABK, NAS:TROW, NYSE:BLK, NAS:NTRS, TPE:2882, NYSE:AMP, XSWX:PGHN, NYSE:BEN, XBRU:GBLB, MIL:EXO, XPAR:AMUN, XAMS:HAL, HKSE:01359, HKSE:02799, SHSE:600958, LSE:SDR, NYSE:IVZ » details
Traded in other countries:BK.Argentina, BONY34.Brazil, BN9.Germany, BK.Mexico,
Headquarter Location:USA
Bank of New York Mellon Corporation is an investment company. The company provides investment management, investment services and wealth management that help institutions and individuals succeed in markets all over the world.

BNY Mellon is a global investment company involved in the management and servicing of financial assets throughout the investment lifecycle. The bank provides financial services for institutions, corporations, and individual investors, and delivers investment management and investment services in 35 countries and more than 100 markets. BNY Mellon is the largest global custody bank in the world, with over $32 trillion in under custody and administration, and can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute, or restructure investment.

Guru Investment Theses on Bank of New York Mellon Corp

Mario Gabelli Comments on Bank of New York Mellon - Feb 15, 2019

Bank of New York Mellon Corp. (NYSE:BK)(3.6%) (BK – $47.07 – NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 2018, the firm had $33.1 trillion in assets under custody and $1.7 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book

From Mario Gabelli (Trades, Portfolio)'s Value 25 Fund fourth-quarter 2018 shareholder letter.

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Mario Gabelli Comments on Bank of New York Mellon Corp - Dec 03, 2018

Bank of New York Mellon Corp. (NYSE:BK) (3.2% net assets as of September 30,2018) (BK – $50.99 – NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than 100 markets worldwide and strives to be the global provider of choice for investment management and investment services. As of September 2018, the firm had $34.5 trillion in assets under custody and $1.8 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

From Mario Gabelli (Trades, Portfolio)'s third-quarter 2018 shareholder letter.

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Jeff Auxier Comments on Bank of New York Mellon Corp - Nov 08, 2018

Under the leadership of Charles Scharf, BK (NYSE:BK) is investing heavily to improve operating platforms and their technology infrastructure while working to keep their costs down across the rest of the company. Mr. Scharf had great success using the same formula at Visa. Higher interest rates should also enhance earnings power as the company is a huge generator of free cash. We see good value in the banks both large and small, with many selling at price earnings ratios of 10-11 times 2019 earnings estimates.



From Jeff Auxier (Trades, Portfolio)'s third-quarter 2018 shareholder commentary.

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Jeff Auxier Comments on Bank of New York Mellon Corp - Nov 08, 2018

Under the leadership of Charles Scharf, BK (NYSE:BK) is investing heavily to improve operating platforms and their technology infrastructure while working to keep their costs down across the rest of the company. Mr. Scharf had great success using the same formula at Visa. Higher interest rates should also enhance earnings power as the company is a huge generator of free cash. We see good value in the banks both large and small, with many selling at price earnings ratios of 10-11 times 2019 earnings estimates.



From Jeff Auxier (Trades, Portfolio)'s third-quarter 2018 shareholder commentary.

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Mario Gabelli Comments on Bank of New York Mellon Corp - Sep 14, 2018

Bank of New York Mellon Corp (NYSE:BK) (1.4%)(BK –$53.93 –NYSE)is a global leader in providing financial services to institutions and individuals. The company operates in more than 100 markets worldwide and strives to be the global provider of choice for investment management and investment services. As of June 30, 2018, the firm had $33.6 trillion in assets under custody and $1.9 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2018 shareholder letter.

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Mario Gabelli Comments on Bank of New York Mellon Corp - Aug 30, 2018

Bank of New York Mellon Corp. (NYSE:BK)(3.5%ofnetassetsasofJune30,2018)(BK–$59.93–NYSE)is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of June 30, 2018, the firm had $33.6 trillion in assets under custody and $1.9 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

From Mario Gabelli (Trades, Portfolio)'s Value 25 Fund second-quarter 2018 shareholder letter.

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Mario Gabelli Comments on Bank of New York Mellon - Nov 09, 2017

Bank_of_New_York_Mellon_Corp._(3.2%)_(BK__$53.02__NYSE) (NYSE:BK) is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of June 2017, the firm had $31.1 trillion in assets under custody and $1.8 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund's third-quarter 2017 shareholder commentary.

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Mario Gabelli Comments on Bank of New York Mellon Corp - Sep 15, 2017

Bank of New York Mellon Corp. (NYSE:BK) (3.1% of net asset as of June 30, 2017)(BK–$51.02–NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than 100 markets worldwide and strives to be the global provider of choice for investment management and investment services. As of March 2017, the firm had $30.6 trillion in assets under custody and $1.7 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

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


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Mario Gabelli Comments on Bank of New York Mellon Corp - Aug 18, 2017

Bank_of_New_York_Mellon_Corp._(NYSE:BK)(1.3%)_(BK__$51.02__NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than 100 markets worldwide and strives to be the global provider of choice for investment management and investment services. As of March 2017, the firm had $30.6 trillion in assets under custody and $1.7 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.


From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2017 shareholder letter.

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Mario Gabelli Comments on Bank of New York Mellon Corp - Aug 18, 2017

Bank_of_New_York_Mellon_Corp._(NYSE:BK)(1.3%)_(BK__$51.02__NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than 100 markets worldwide and strives to be the global provider of choice for investment management and investment services. As of March 2017, the firm had $30.6 trillion in assets under custody and $1.7 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.


From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2017 shareholder letter.

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Jeff Auxier Comments on Bank of New York - Aug 03, 2017

Bank of New York (NYSE:BK) recently added an exceptional CEO in Charles Scharf who helped lead Visa in technology and international expansion. The company is benefitting from the relaxation in capital requirements and higher short-term interest rates. They are returning $4 billion to shareholders while raising the dividend 26% to $0.24.



From Jeff Auxier (Trades, Portfolio)'s second-quarter 2017 shareholder letter.

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Mario Gabelli Comments on Bank of New York Mellon Corp - May 10, 2017

Bank of New York Mellon Corp. (2.9% of net assets as of March 31, 2017) (BK – $47.23 – NYSE) (NYSE:BK) is a global leader in providing financial services to institutions and individuals. The company operates in more than 100 markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 31, 2016, the firm had $30.0 trillion in assets under custody and $1.7 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

From Mario Gabelli (Trades, Portfolio)'s Gabelli Equity Income Fund 2017 first quarter shareholder commentary.

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Jeff Auxier Comments on Bank of New York - May 09, 2017

Banks in general declined off euphoric post-election highs although Bank of New York (NYSE:BK) still sells at a significant discount to the market and will benefit greatly if interest rates normalize.

After a difficult global earnings and revenue environment for over six quarters, we are seeing a pickup in sales and earnings for our core positions as many economies have seemed to stabilize. Domestically, the ISM services index still shows good improvement over 55%. We work hard at monitoring fundamentals to be able to catch the turn. While we are concerned with making good buys, it is also important to monitor highly valued “high expectation” stocks that can suffer painful drops when results fall short. We are looking for high integrity, dynamic management teams that can build value in any environment. We have learned over the years that having the cumulative knowledge of specific businesses, cash flows and balance sheets is far more important than being a market operator. When focusing on the power of compounding, it is critical to quantify and constantly assess risk through an in-depth knowledge of facts and valuation with a focus on the growth in underlying per share intrinsic value. At the core of mitigating risk is understanding the asset and the fundamentals. The problem with the proliferation of exchange traded funds is that nobody truly understands what they own as individual businesses. Most are following momentum. The real value added comes when markets drop and you really need to know the individual fundamentals at the height of panic. Many of the top Fund positions we have owned for 20-30 years. We want to be prepared daily and know ahead of time what we want to own. Then when the market drops we are ready to act. I love to study great coaches and in particular legendary UCLA basketball coach John Wooden who had preached that “the will to win is not nearly as important as the will to prepare to win.” We see the will to grind out daily research as integral to prepare for difficult times and improve the odds of protecting our clients’ life savings.




From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.

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Third Avenue Management Comments on Bank of New York Mellon - Apr 21, 2017

Our investment premise for Bank of New York Mellon (NYSE:BK) is that it is a strong book value compounder that is substantially "under-earning" its profitability potential. The Company has undertaken significant cost savings initiatives, which combined with market-leading digital platform investments, should drive future growth and market share gains. The Company's balance sheet is strong with significant excess capital enabling a sizable return of capital to shareholders through both dividend and share buybacks. Lastly, with activist interest still high, any loss of momentum could lead to renewed calls for a break-up of the company to accelerate closure of the discount to NAV.

BK's book value and tangible book value growth both inflected positively in 2016 over its three-year trailing averages, over and above strong buyback and dividend activity, and we see this growth as set to accelerate with stronger earnings. Earnings Per Share (EPS) growth finally reaccelerated in 2015 and 2016, to $2.85 and $3.17, respectively, after languishing in the low-$2 per share range from 2011 to 2014. Management, spurred by activist pressure and new board members in 2014, has accelerated its cost reduction efforts and has committed to positive operating leverage regardless of the revenue growth environment. The results of this focus are clearly seen in 4Q 2016 earnings where non-interest expenses fell 2.1% while revenues grew 1.7%, generating 351 basis points of positive operating leverage. This cost-cutting focus is a key tenant of our investment case and an underlying pillar of why we believe BK shares can outperform regardless of the broader market environment. Further, while this cost reduction focus was started in 2014 when falling interest rates and meager corporate activity were suppressing revenues, we think the current tailwinds of higher interest rates and better corporate activity should also accelerate revenue growth, providing even stronger earnings leverage over the next few years that could push 2018 EPS to the $4.00 per share level.

More compelling to us is the fact that BK's cost reduction efforts are not just aimed at rote headcount reductions. BK has been aggressively investing in its new Nexen platform, an open-source, cloud-based technology platform aimed at improving client efficiency and flexibility. This platform will both help to drive revenue growth and likely share gains through its forward looking client-responsive features, and also dramatically lower costs as it is replacing legacy server based systems and consolidating multiple client access points to just one.

BK's strong balance sheet metrics continued to improve in 2016 (Common Equity Tier 1 ratio of 12.3%, up from 11.5% year over year), over and above its substantial return of value to shareholders in dividends ($778 million) and share buybacks ($2.4 billion). Management has committed to continued strong dividends (90%400% payout ratio) and share buybacks for 2017. The buybacks are having a dramatic effect on the company, as the fully diluted share count declined 3.6% in 2016 and fell 12.3% over the last 5-years.

Despite the strong credit and earnings metrics at BK, its shares underperformed the S&P 500 post-election, up 7.6% through March 31, 2017 vs. 10.4% for the S&P 500. Moreover, BK is currently trading towards the lower end of its price-to-book and price-to-earnings ranges for the last 10 years. While we continue to take a 3-5 year view on BK, even a near term price target for 2018 at a 15x price earnings ratio on $4.00 EPS would yield a $60 stock price, which is more than 26% above current levels. Clearly we see significant value in Bank of New York Mellon, regardless of overall market levels currently.



From Third Avenue Management (Trades, Portfolio)'s Value Fund first quarter 2017 commentary.

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Top Ranked Articles about Bank of New York Mellon Corp

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BNY Mellon's New SmartPay Global(SM) Offers Payment Capabilities in Over 160 Countries
U.S Master Trust Universe Posts Negative Result Following Two Quarters of Positive Performance According to BNY Mellon U.S. Master Trust Universe/BNY Mellon Asset Strategy View®
Mario Gabelli Comments on Bank of New York Mellon Guru stock highlight
Bank of New York Mellon Corp. (NYSE:BK)(3.6%) (BK – $47.07 – NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of December 2018, the firm had $33.1 trillion in assets under custody and $1.7 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. We believe BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book Read more...
BNY Mellon's Pershing Climbs to the Top Spot for Brokerage Statements
Paul Camp, CEO of Treasury Services, joins BNY Mellon's Executive Committee
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Ratios

vs
industry
vs
history
PE Ratio 13.41
BK's PE Ratio is ranked higher than
53% of the 810 Companies
in the Global Asset Management industry.

( Industry Median: 12.95 vs. BK: 13.41 )
Ranked among companies with meaningful PE Ratio only.
BK' s PE Ratio Range Over the Past 10 Years
Min: 8.16  Med: 14.83 Max: 42.69
Current: 13.41
8.16
42.69
Forward PE Ratio 12.55
BK's Forward PE Ratio is ranked lower than
59% of the 153 Companies
in the Global Asset Management industry.

( Industry Median: 11.07 vs. BK: 12.55 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 13.41
BK's PE Ratio without NRI is ranked higher than
53% of the 787 Companies
in the Global Asset Management industry.

( Industry Median: 13.20 vs. BK: 13.41 )
Ranked among companies with meaningful PE Ratio without NRI only.
BK' s PE Ratio without NRI Range Over the Past 10 Years
Min: 8.16  Med: 14.76 Max: 36.95
Current: 13.41
8.16
36.95
Price-to-Owner-Earnings 10.36
BK's Price-to-Owner-Earnings is ranked lower than
65% of the 352 Companies
in the Global Asset Management industry.

( Industry Median: 11.34 vs. BK: 10.36 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
BK' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 4.62  Med: 13.86 Max: 163.26
Current: 10.36
4.62
163.26
PB Ratio 1.41
BK's PB Ratio is ranked lower than
67% of the 1181 Companies
in the Global Asset Management industry.

( Industry Median: 0.99 vs. BK: 1.41 )
Ranked among companies with meaningful PB Ratio only.
BK' s PB Ratio Range Over the Past 10 Years
Min: 0.64  Med: 1.19 Max: 1.83
Current: 1.41
0.64
1.83
PS Ratio 3.40
BK's PS Ratio is ranked higher than
57% of the 967 Companies
in the Global Asset Management industry.

( Industry Median: 4.18 vs. BK: 3.40 )
Ranked among companies with meaningful PS Ratio only.
BK' s PS Ratio Range Over the Past 10 Years
Min: 1.47  Med: 2.91 Max: 4.82
Current: 3.4
1.47
4.82
Price-to-Free-Cash-Flow 11.00
BK's Price-to-Free-Cash-Flow is ranked lower than
60% of the 310 Companies
in the Global Asset Management industry.

( Industry Median: 13.33 vs. BK: 11.00 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
BK' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 4.95  Med: 12.18 Max: 117.5
Current: 11
4.95
117.5
Price-to-Operating-Cash-Flow 8.99
BK's Price-to-Operating-Cash-Flow is ranked lower than
55% of the 547 Companies
in the Global Asset Management industry.

( Industry Median: 10.94 vs. BK: 8.99 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
BK' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 4.46  Med: 10.99 Max: 127.71
Current: 8.99
4.46
127.71
EV-to-Revenue -5.51
BK's EV-to-Revenue is ranked lower than
99.99% of the 915 Companies
in the Global Asset Management industry.

( Industry Median: 4.87 vs. BK: -5.51 )
Ranked among companies with meaningful EV-to-Revenue only.
BK' s EV-to-Revenue Range Over the Past 10 Years
Min: -12.6  Med: -5.75 Max: 2.5
Current: -5.51
-12.6
2.5
Shiller PE Ratio 22.66
BK's Shiller PE Ratio is ranked lower than
71% of the 310 Companies
in the Global Asset Management industry.

( Industry Median: 15.31 vs. BK: 22.66 )
Ranked among companies with meaningful Shiller PE Ratio only.
BK' s Shiller PE Ratio Range Over the Past 10 Years
Min: 8.22  Med: 16.77 Max: 28.09
Current: 22.66
8.22
28.09

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 1.99
BK's Dividend Yield % is ranked higher than
94% of the 1130 Companies
in the Global Asset Management industry.

( Industry Median: 4.62 vs. BK: 1.99 )
Ranked among companies with meaningful Dividend Yield % only.
BK' s Dividend Yield % Range Over the Past 10 Years
Min: 1.11  Med: 1.76 Max: 5.26
Current: 1.99
1.11
5.26
Dividend Payout Ratio 0.26
BK's Dividend Payout Ratio is ranked higher than
77% of the 597 Companies
in the Global Asset Management industry.

( Industry Median: 0.62 vs. BK: 0.26 )
Ranked among companies with meaningful Dividend Payout Ratio only.
BK' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.17  Med: 0.25 Max: 0.34
Current: 0.26
0.17
0.34
3-Year Dividend Growth Rate 15.20
BK's 3-Year Dividend Growth Rate is ranked higher than
64% of the 407 Companies
in the Global Asset Management industry.

( Industry Median: 3.60 vs. BK: 15.20 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
BK' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: -26.9  Med: 9.2 Max: 26.4
Current: 15.2
-26.9
26.4
Forward Dividend Yield % 2.07
BK's Forward Dividend Yield % is ranked higher than
94% of the 1041 Companies
in the Global Asset Management industry.

( Industry Median: 4.97 vs. BK: 2.07 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 3.40
BK's 5-Year Yield-on-Cost % is ranked higher than
93% of the 1108 Companies
in the Global Asset Management industry.

( Industry Median: 5.20 vs. BK: 3.40 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
BK' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.9  Med: 3.02 Max: 9.02
Current: 3.4
1.9
9.02
3-Year Average Share Buyback Ratio 4.00
BK's 3-Year Average Share Buyback Ratio is ranked higher than
85% of the 673 Companies
in the Global Asset Management industry.

( Industry Median: -1.20 vs. BK: 4.00 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
BK' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -16.9  Med: 0 Max: 4
Current: 4
-16.9
4

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 3.49
BK's Price-to-Tangible-Book is ranked lower than
81% of the 1128 Companies
in the Global Asset Management industry.

( Industry Median: 1.02 vs. BK: 3.49 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
BK' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 0.49  Med: 3.73 Max: 11.21
Current: 3.49
0.49
11.21
Price-to-Intrinsic-Value-Projected-FCF 0.84
BK's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
56% of the 381 Companies
in the Global Asset Management industry.

( Industry Median: 0.97 vs. BK: 0.84 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
BK' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.4  Med: 0.9 Max: 6.26
Current: 0.84
0.4
6.26
Price-to-Median-PS-Value 1.17
BK's Price-to-Median-PS-Value is ranked lower than
73% of the 763 Companies
in the Global Asset Management industry.

( Industry Median: 0.93 vs. BK: 1.17 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
BK' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.2  Med: 1.18 Max: 5.81
Current: 1.17
0.2
5.81
Price-to-Graham-Number 1.44
BK's Price-to-Graham-Number is ranked lower than
67% of the 691 Companies
in the Global Asset Management industry.

( Industry Median: 0.87 vs. BK: 1.44 )
Ranked among companies with meaningful Price-to-Graham-Number only.
BK' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.31  Med: 1.71 Max: 3.42
Current: 1.44
0.31
3.42

More Statistics

Revenue (TTM) (Mil) $15,986.00
EPS (TTM) $ 4.03
Beta0.87
Volatility22.53%
52-Week Range $43.67 - 58.22
Shares Outstanding (Mil)954.84

Analyst Estimate

Dec19 Dec20 Dec21
Revenue (Mil $) 16,449 16,894 17,116
EBIT (Mil $)
EBITDA (Mil $)
EPS ($) 4.25 4.64 4.61
EPS without NRI ($) 4.25 4.64 4.61
EPS Growth Rate
(Future 3Y To 5Y Estimate)
7.00%
Dividends per Share ($) 1.22 1.42 1.29

Piotroski F-Score Details

Piotroski F-Score: ----
Positive ROAN
Positive CFROAN
Higher ROA yoyN
CFROA > ROAN
Lower Leverage yoyN
Higher Current Ratio yoyN
Less Shares Outstanding yoyN
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

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