Bank of Nova Scotia Stock Story

BNS

Stock

USD 62.63 0.23 0.37%

Macroaxis Story

As many rational traders are trying to avoid financial services space, it makes sense to sum up Bank Of Nova a little further and understand how it stands against Credit Suisse and other similar entities. We are going to discuss some of the competitive aspects of both Bank of Nova Scotia and Credit.

Published over two months ago

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Will Bank of Nova Scotia (NYSE:BNS) shadow Credit Suisse price gain?

By analyzing existing basic indicators between Bank of Nova Scotia and Credit, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Credit with a short position in Bank of Nova Scotia. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bank of Nova Scotia has an asset utilization ratio of 3.34 percent. This connotes that the company is making $0.0334 for each dollar of assets. An increasing asset utilization means that Bank Of Nova is more efficient with each dollar of assets it utilizes for everyday operations.

Will Bank of Nova Scotia (NYSE:BNS) shadow Credit Suisse price gain?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Bank of Nova Scotia or Citigroup is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Bank of Nova Scotia dividends

A dividend is the distribution of a portion of Bank of Nova Scotia earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Bank of Nova Scotia dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Bank of Nova Scotia one year expected dividend income is about $2.35 per share.

As of 08/12/2022, Dividend Yield is likely to grow to 0.06, while Preferred Dividends Income Statement Impact is likely to drop slightly above 186.2 M.

	Last Reported	Projected for 2022
Preferred Dividends Income Statement Impact	209.7 M	186.2 M
Payment of Dividends and Other Cash Distributions	-4.1 B	-4.5 B
Dividend Yield	0.05	0.06
Dividends per Basic Common Share	3.29	3.28

Investing in dividend-paying stocks, such as Bank Of Nova is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Bank of Nova Scotia must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Bank of Nova Scotia. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Bank of Nova Scotia's Liquidity

Bank of Nova Scotia financial leverage refers to using borrowed capital as a funding source to finance Bank Of Nova ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of Nova Scotia financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bank of Nova Scotia's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Bank of Nova Scotia, but it might be worth checking our own buy vs. sell analysis

Correlation Between Bank of Nova Scotia and Citigroup

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Bank of Nova Scotia together with similar or unrelated positions with a negative correlation. For example, you can also add Citigroup to your portfolio. If Citigroup is not perfectly correlated to Bank of Nova Scotia it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Bank of Nova Scotia for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between BNS and C for more information.

Note

Are you currently holding both Bank of Nova Scotia and Citigroup in your portfolio?

Please note if you are using this as a pair-trade strategy between Bank of Nova Scotia and Citigroup, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Bank of Nova Scotia revenue. Based on the latest financial disclosure, Bank Of Nova reported 29.95 B of revenue. This is 167.17% higher than that of the Financial Services sector and significantly higher than that of the Banks—Diversified industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Credit Suisse we see revenue of 19.65 B, which is much higher than that of the Banks—Diversified

	Bank of Nova Scotia	29.95 Billion
	Sector	0.0
	Credit	19.65 Billion

29.9 B

Bank of Nova Scotia

Sector

19.6 B

Credit

Bank of Nova Scotia implied volatility may change after the spike

The market risk adjusted performance is down to -0.19 as of today. Bank Of Nova exhibits very low volatility with skewness of 0.38 and kurtosis of 0.45. However, we advise investors to further study Bank Of Nova technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank of Nova Scotia's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bank of Nova Scotia's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Bank of Nova Scotia Implied Volatility

Bank of Nova Scotia's implied volatility exposes the market's sentiment of Bank Of Nova stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bank of Nova Scotia's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bank of Nova Scotia stock will not fluctuate a lot when Bank of Nova Scotia's options are near their expiration.

The Current Takeaway on Bank of Nova Scotia Investment

While some firms under the banks—diversified industry are still a bit expensive, Bank of Nova Scotia may offer a potential longer-term growth to retail investors. To conclude, as of the 25th of May 2022, we believe that Bank of Nova Scotia is currently undervalued with average probability of bankruptcy in the next two years. Our current 90 days 'Buy-Sell' recommendation on the enterprise is Strong Hold.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Bank Of Nova. Please refer to our Terms of Use for any information regarding our disclosure principles.

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