Stock in Focus: The Bank of Nova Scotia (BNS)

Company Profile:

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 offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small businesses and commercial customers, including automotive financing solutions to dealers and their customers. The company operates a network of 950 branches and approximately 3,650 automated banking machines in Canada; and approximately 1,900 branches and 5,500 ATMs internationally, as well as contact centers. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.

Recent News:

On Nov. 26, 2019, Scotiabank announced a dividend on the outstanding shares of the Bank, payable January 29, 2020 to shareholders of record at the close of business on January 7, 2020 .

Scotiabank reported fourth-quarter fiscal 2019 (ended Oct 31) adjusted net income of C$2.4 billion ($1.8 billion), up 2% year over year. Results exclude acquisition- and divestiture-related costs. For fiscal 2019, net income on adjusted basis grew 3% to C$9.4 billion ($7.1 billion).

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BNS’s strengths can be seen in its better growth and better profitability compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 45.41 with positive bias. We rate The Bank of Nova Scotia (BNS) a STRONG BUY.