Buffett Brain · Research note
Score updated 18 Jul 2026 · analysis from 17 May 2026
BK· Financial Services
Bank of New York Mellon
Bank of New York Mellon's low ROIC of 5.31% and weak financial health make it a poor fit for Buffett's criteria.
Buffett fit
Weak fit
Owner
33
Durability
82
Management
58
Price
25
Score updated 18 Jul 2026 · analysis from 17 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Bank of New York Mellon, we'd be concerned about its low of 5.31% and the financial health indicated by a current ratio of 0.57.
The full reasoning comes with a free account.
The bank's durability is supported by consistent profitability over the last five years and a 5-year EPS CAGR of 15.65%.
The full reasoning comes with a free account.
The bank has reduced its share count by a CAGR of -4.63% over the last five years, indicating shareholder-friendly actions.
The full reasoning comes with a free account.
The yield of 5.59% is below our typical threshold of 8-10%.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 26.37% over 5 years indicates strong top-line growth.
- 2EPS CAGR of 15.65% suggests solid earnings growth.
- 3Share count reduction at a CAGR of -4.63% reflects shareholder returns.
- 4/Net income ratio of 0.93 shows high earnings quality.
Concerns
7- 1 of 5.31% is significantly below the 15% threshold for a wonderful business.
- 2Interest coverage of 0.4 raises concerns about financial stability.
- 3Current ratio of 0.57 indicates potential liquidity issues.
- 4Debt/Equity ratio of 1.19 suggests high .
Price history
$157+163.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
The Bank of New York Mellon provides a range of financial services including custody, investment management, and wealth services. Its Securities Services segment offers custody and accounting services, while Market and Wealth Services provides clearing and collateral management. The Investment and Wealth Management segment focuses on investment strategies and private banking. With a net income of $5.55B and of $5.18B, the unit economics are pressured by a low of 5.31%.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Financial Services
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