0.53%
12.59%
14.78%
32.93%
55.97%
45.97%
93.17%

Company Description

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally.The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and Other segments.The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage, and data analytics.


This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors.The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services; and clearance and collateral management services.This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services.


The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services.The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services.It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices.


The company was founded in 1784 and is headquartered in New York, New York.

Market Data

Last Price 86.5
Change Percentage 0.53%
Open 86.73
Previous Close 86.04
Market Cap ( Millions) 62079
Volume 2859263
Year High 87.7
Year Low 52.64
M A 50 79.85
M A 200 68.76

Financial Ratios

FCF Yield -6.86%
Dividend Yield 2.12%
ROE 8.61%
Debt / Equity 80.73%
Net Debt / EBIDTA -1221.93%
Price To Book 1.52
Price Earnings Ratio 18.01
Price To FCF -14.59
Price To sales 3.46
EV / EBITDA -3.0

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Securities Services

Expected Growth : 2.5 %

What the company do ?

Securities Services from The Bank of New York Mellon Corporation provides custody, accounting, and securities lending services to institutional investors, helping them to manage and optimize their portfolios.

Why we expect these perspectives ?

The 2.5% growth in Securities Services from The Bank of New York Mellon Corporation is driven by increasing demand for custody and fund administration services, growth in assets under management, and expansion into new markets. Additionally, the segment benefits from the trend towards outsourcing and the need for institutional investors to optimize their investment operations.

Segment nΒ°2 -> Market and Wealth Services

Expected Growth : 2.8 %

What the company do ?

Market and Wealth Services from The Bank of New York Mellon Corporation provides investment servicing and wealth management solutions to institutional clients and individual investors.

Why we expect these perspectives ?

The 2.8% growth in Market and Wealth Services at The Bank of New York Mellon Corporation is driven by increasing demand for custody and investment services, growth in assets under management, and expansion into new markets. Additionally, the segment benefits from the bank's strong brand reputation, strategic acquisitions, and investments in digital platforms and technology.

Segment nΒ°3 -> Investment and Wealth Management

Expected Growth : 3.2 %

What the company do ?

The Bank of New York Mellon Corporation's Investment and Wealth Management segment provides investment management, wealth management, and related services to individuals, families, and institutions.

Why we expect these perspectives ?

The 3.2% growth in Investment and Wealth Management at The Bank of New York Mellon Corporation is driven by increasing demand for institutional investment services, growth in assets under management, and expansion of wealth management offerings. Additionally, strategic acquisitions and partnerships have enhanced the segment's capabilities, contributing to its growth.

Segment nΒ°4 -> Other

Expected Growth : 2.2 %

What the company do ?

The 'Other' segment from The Bank of New York Mellon Corporation refers to the aggregation of non-core businesses, including consumer lending, treasury services, and corporate trust.

Why we expect these perspectives ?

The 2.2% growth in Other segment of The Bank of New York Mellon Corporation is driven by increasing demand for treasury services, growth in global markets and investment management, and expansion of securities lending and borrowing activities, as well as rising interest rates and foreign exchange revenue.

The Bank Of New York Mellon Corporation Products

Product Range What is it ?
Investment Servicing Provides custody, accounting, and administrative services to support investment managers and their clients
Wealth Management Offers investment management, wealth planning, and private banking services to high net worth individuals and families
Corporate Trust Provides trust and agency services to corporations, governments, and financial institutions
Depositary Receipts Issues and administers American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) for non-US companies
Treasury Services Provides cash management, trade finance, and escrow services to corporations and financial institutions
Markets Offers foreign exchange, securities lending, and collateral management services to institutional clients
Digital Develops and provides digital solutions for investment servicing, wealth management, and treasury services

The Bank of New York Mellon Corporation's Porter Forces

The threat of substitutes for The Bank of New York Mellon Corporation is medium due to the presence of alternative financial institutions and digital payment systems.

The bargaining power of customers for The Bank of New York Mellon Corporation is low due to the complexity of financial services and the lack of price sensitivity among customers.

The bargaining power of suppliers for The Bank of New York Mellon Corporation is low due to the availability of multiple suppliers and the lack of concentration in the supply chain.

The threat of new entrants for The Bank of New York Mellon Corporation is low due to the high barriers to entry in the financial services industry, including regulatory hurdles and capital requirements.

The intensity of rivalry for The Bank of New York Mellon Corporation is high due to the presence of multiple competitors in the financial services industry, leading to a highly competitive market.

Capital Structure

Value
Debt Weight 61.33%
Debt Cost 4.38%
Equity Weight 38.67%
Equity Cost 9.46%
WACC 6.34%
Leverage 158.62%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
ARES Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as …
BLK BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, …
AMP Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & …
BX Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. …
KKR KKR & Co. Inc. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, management buyouts, credit …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
86.5$
Current Price
86.5$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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