MMarketMath

BNY

Slow growerQuality: High (70/100)1 red flag

BNY Mellon · Financials · Asset Management & Custody Banks

$162.14

52w 101.71 – 165.69

20y monthly, adjusted

Mkt cap

$110.0B

P/E

20.0

P/FCF

21.5

FCF yield

4.7%

ROE

12.5%

Shldr yield

4.5%

div 1.3% + bb 3.2%

What today's price assumes

At $110.0B, the market is pricing in 8.7% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 3.9% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $116 · $116 · $144 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 7.3× across 16 years, BNY would trade near $73/share (25th–75th percentile: $67–$130); it trades at 16.3× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+6.7%

Rev 5y

+4.9%

Rev 10y

+2.9%

EPS 5y

+14.1%

EPS 10y

+10.6%

FCF 5y

+6.3%

FCF 10y

+3.9%

Fundamentals

Fiscal 2008–2025, from SEC filings

Revenue

2008: $13.6B
2009: $7.7B
2010: $13.8B
2011: $14.7B
2012: $14.5B
2013: $15.0B
2014: $15.6B
2015: $15.1B
2017: $15.5B
2018: $16.4B
2019: $16.5B
2020: $15.8B
2021: $15.9B
2022: $16.5B
2023: $17.7B
2024: $18.6B
2025: $20.1B
$0$10.0B$20.0B
08
11
14
18
21
24

Net income

2008: $1.4B
2009: −$814.0M
2010: $2.5B
2011: $2.5B
2012: $2.4B
2013: $2.1B
2014: $2.6B
2015: $3.2B
2017: $4.1B
2018: $4.3B
2019: $4.4B
2020: $3.6B
2021: $3.8B
2022: $2.6B
2023: $3.3B
2024: $4.5B
2025: $5.5B
$0$2.0B$4.0B
08
11
14
18
21
24

Free cash flow

2008: $2.6B
2009: $3.5B
2010: $3.8B
2011: $1.6B
2012: $977.0M
2013: −$1.3B
2014: $3.7B
2015: $3.5B
2017: $3.5B
2018: $4.9B
2019: −$1.1B
2020: $3.8B
2021: $1.6B
2022: $13.7B
2023: $4.7B
2024: −$782.0M
2025: $5.2B
$0$5.0B$10.0B
08
11
14
18
21
24

Diluted shares (lower is better)

2008: 1.1B
2009: 1.2B
2010: 1.2B
2011: 1.2B
2012: 1.2B
2013: 1.2B
2014: 1.1B
2015: 1.1B
2017: 1.0B
2018: 1.0B
2019: 943.1M
2020: 892.5M
2021: 856.4M
2022: 814.8M
2023: 787.8M
2024: 748.1M
2025: 716.7M
0500.0M1.0B
08
11
14
18
21
24

Margins

0%50%081114182124
Net marginFCF margin

Capital returned (dividends + buybacks)

2008: $1.4B
2009: $627.0M
2010: $481.0M
2011: $1.5B
2012: $1.8B
2013: $1.7B
2014: $2.4B
2015: $3.1B
2017: $3.6B
2018: $4.3B
2019: $4.4B
2020: $2.1B
2021: $5.7B
2022: $1.3B
2023: $3.9B
2024: $4.4B
2025: $5.0B
$0$2.0B$4.0B
08
11
14
18
21
24

Cash vs long-term debt

$10.0B$20.0B$30.0B081114182124
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

No data

Net income by quarter

Q2'23: $1.1B
Q3'23: $1.0B
Q4'23: $208.0M
Q1'24: $1.0B
Q2'24: $1.2B
Q3'24: $1.2B
Q4'24: $1.2B
Q1'25: $1.2B
Q2'25: $1.4B
Q3'25: $1.4B
Q4'25: $1.5B
Q1'26: $1.6B
Q2'26: $1.8B
$0$500.0M$1.0B$1.5B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$1.8B+23.8%2.45$2.5B
Q1'26$1.6B+33.8%2.24−$3.0B
Q4'25 *$1.5B+26.5%2.01$5.2B
Q3'25$1.4B+22.3%1.88−$1.1B
Q2'25$1.4B+21.8%1.93$2.2B
Q1'25$1.2B+19.0%1.58$412.0M
Q4'24$1.2B+455.3%1.54$1.6B
Q3'24$1.2B+13.7%1.50−$312.0M
Q2'24$1.2B+9.0%1.52$2.1B
Q1'24$1.0B+4.4%1.25−$2.7B
Q4'23$208.0M−61.7%0.21−$2.1B
Q3'23$1.0B+168.0%1.23$5.0B
Q2'23$1.1B+23.4%1.31$1.1B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+6.7%+4.9%+2.9%+2.5%
Operating cash flow−23.6%+6.0%+5.0%+3.4%
Free cash flow−27.7%+6.3%+3.9%+2.0%
EPS (diluted)+37.0%+14.1%+10.6%+8.9%
Equity+2.8%−0.7%+1.5%+2.1%
LT debt+1.5%+4.2%+4.0%+4.5%
Diluted shares−4.2%−4.3%−4.3%−3.5%
Stock price+57.2%+27.5%+17.5%+17.5%

$100, 3 years ago

$389vs $176 in SPY

57.2% vs 20.7%/yr

$100, 5 years ago

$336vs $181 in SPY

27.5% vs 12.6%/yr

$100, 10 years ago

$502vs $412 in SPY

17.5% vs 15.2%/yr

$100, 15 years ago

$1,117vs $813 in SPY

17.5% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$4.09

$54.6B created / $13.3B retained

Last 10 years

$2.12

$54.3B created / $25.6B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

8.8%

OCF ÷ (equity + debt)

OCF / EV yield

4.9%

MC vs 10× OCF

1.65

≤1 = priced under 10× OCF

Debt / FCF

6.2y

SBC / FCF

0.0%

Owner earnings

$5.2B

OCF − capex − SBC

OE yield

4.7%

Share count 5y

−2.7%

per year; negative = buybacks

Growth engine (5y): reinvested 17.7% of operating cash flow at an incremental return of 30.5% — an organically fundable growth rate of about 5.4% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

18 of 24 checks pass · 75%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/7

  • Revenue growth

    4.9% · 5y CAGR ≥ 5%

    fail
  • EPS growth

    14.1% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    6.3% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    8 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    6.0% vs 4.9% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

4/5

  • Net margin

    27.6% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    12.5% · ≥ 12%

    pass
  • Cash ROIC

    8.8% · ≥ 12%

    fail
  • FCF margin

    25.8% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $6.7B vs NI $5.5B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

1/4

  • Debt payable from cash flow

    6.2y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    16% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.72 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $44.3B · equity > 0 and grew over ~5y

    fail
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

4/4

  • Share count flat or shrinking

    -2.7% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    0% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    96% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    10 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

3/4

  • FCF yield

    4.7% · ≥ 3%

    pass
  • Earnings multiple

    20.0 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    8.7% vs 3.9% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    4.5% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy debt load

Long-term debt exceeds 5 years of free cash flow.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202520,0805,5497.406,7301,5535,1771,4473,53515,11131,87344,313717
202418,6194,5305.806871,469-7821,3483,06404,17830,85441,318748
202317,6973,3023.895,9121,2204,6921,2622,60404,92231,25740,770788
202216,5292,5562.8815,0681,34613,7221,1651245,03030,45840,734815
202115,9313,7594.142,8381,2151,6231,1264,5676,06125,93143,034856
202015,8083,6173.835,0381,2223,8161,1179896,25225,98445,801893
201916,4624,4414.51961,210-1,1141,1203,3274,83027,50141,483943
201816,3924,2664.045,9961,1084,8881,0523,2695,86429,16340,6381,007
201715,5434,0903.724,6671,1973,4709012,6865,38227,97941,2511,040
201515,1263,1582.714,1276013,5267602,3556,53721,54738,0371,113
201415,6082,5672.154,4847913,6937601,6696,97020,26437,4411,137
201314,9682,1041.73-642609-1,2516801,0266,46019,86437,4971,154
201214,5342,4372.031,6296529776231,1484,72718,53036,4311,178
201114,6802,5162.032,2116421,5695938734,17519,93333,4171,223
201013,8162,5182.054,0502303,820440413,67516,51732,3541,216
20097,654-814-1.163,7813183,463599283,73217,23428,9771,179
200813,5731,4311.202,9143032,6111,1073084,88915,86525,2641,148

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.