VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
FRA:BAC - US92343V1044 - Common Stock
37.655 EUR
-0.43 (-1.13%)
We assign a fundamental rating of 5 out of 10 to BAC. BAC was compared to 33 industry peers in the Diversified Telecommunication Services industry. BAC has an excellent profitability rating, but there are concerns on its financial health. BAC is valued quite cheap, while showing a decent growth score. This is a good combination! Finally BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BAC was profitable.
BAC had a positive operating cash flow in the past year.
In the past 5 years BAC has always been profitable.
Each year in the past 5 years BAC had a positive operating cash flow.
1.2 Ratios
BAC has a better Return On Assets (4.75%) than 84.85% of its industry peers.
BAC has a better Return On Equity (17.65%) than 84.85% of its industry peers.
With a decent Return On Invested Capital value of 7.50%, BAC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
BAC had an Average Return On Invested Capital over the past 3 years of 7.15%. This is in line with the industry average of 7.05%.
The 3 year average ROIC (7.15%) for BAC is below the current ROIC(7.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 17.65% | ||
| ROIC | 7.5% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
1.3 Margins
With an excellent Profit Margin value of 13.28%, BAC belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Profit Margin of BAC has declined.
BAC has a Operating Margin of 23.62%. This is amongst the best in the industry. BAC outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
With a Gross Margin value of 59.48%, BAC perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
In the last couple of years the Gross Margin of BAC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 13.28% | ||
| GM | 59.48% |
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BAC is creating some value.
The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BAC has more shares outstanding
BAC has a better debt/assets ratio than last year.
2.2 Solvency
BAC has an Altman-Z score of 1.31. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.31, BAC is in line with its industry, outperforming 54.55% of the companies in the same industry.
The Debt to FCF ratio of BAC is 7.45, which is on the high side as it means it would take BAC, 7.45 years of fcf income to pay off all of its debts.
BAC has a Debt to FCF ratio of 7.45. This is comparable to the rest of the industry: BAC outperforms 57.58% of its industry peers.
BAC has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
BAC has a Debt to Equity ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.27
WACC5.88%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BAC may have some problems paying its short term obligations.
The Current ratio of BAC (0.64) is worse than 69.70% of its industry peers.
BAC has a Quick Ratio of 0.64. This is a bad value and indicates that BAC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.60, BAC is doing worse than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.17%.
BAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.93% yearly.
Looking at the last year, BAC shows a small growth in Revenue. The Revenue has grown by 2.05% in the last year.
The Revenue has been growing slightly by 0.44% on average over the past years.
EPS 1Y (TTM)2.17%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%6.09%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
3.2 Future
Based on estimates for the next years, BAC will show a small growth in Earnings Per Share. The EPS will grow by 5.17% on average per year.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.98% on average per year.
EPS Next Y5.35%
EPS Next 2Y4.53%
EPS Next 3Y4.29%
EPS Next 5Y5.17%
Revenue Next Year2.79%
Revenue Next 2Y2.42%
Revenue Next 3Y2%
Revenue Next 5Y1.98%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BAC is valuated reasonably with a Price/Earnings ratio of 9.32.
Based on the Price/Earnings ratio, BAC is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (27.06), we can say BAC is valued rather cheaply.
The Price/Forward Earnings ratio is 8.74, which indicates a very decent valuation of BAC.
Based on the Price/Forward Earnings ratio, BAC is valued cheaper than 90.91% of the companies in the same industry.
BAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
BAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BAC is cheaper than 63.64% of the companies in the same industry.
78.79% of the companies in the same industry are more expensive than BAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.43 | ||
| EV/EBITDA | 6.52 |
4.3 Compensation for Growth
BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BAC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)N/A
EPS Next 2Y4.53%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.13%, BAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 199709.29, BAC pays a better dividend. On top of this BAC pays more dividend than 90.91% of the companies listed in the same industry.
BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
5.2 History
The dividend of BAC has a limited annual growth rate of 1.99%.
Dividend Growth(5Y)1.99%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
62.46% of the earnings are spent on dividend by BAC. This is not a sustainable payout ratio.
The dividend of BAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.46%
EPS Next 2Y4.53%
EPS Next 3Y4.29%
FRA:BAC (9/5/2025, 7:00:00 PM)
37.655
-0.43 (-1.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.61%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap158.77B
Analysts72.94
Price Target42.52 (12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend2.29
Dividend Growth(5Y)1.99%
DP62.46%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.34%
Min EPS beat(2)0.01%
Max EPS beat(2)0.67%
EPS beat(4)2
Avg EPS beat(4)-0.89%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-1.05%
EPS beat(12)4
Avg EPS beat(12)-1.09%
EPS beat(16)5
Avg EPS beat(16)-1.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)0
Avg Revenue beat(12)-2.77%
Revenue beat(16)0
Avg Revenue beat(16)-2.84%
PT rev (1m)1.34%
PT rev (3m)-0.73%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.74 | ||
| P/S | 1.35 | ||
| P/FCF | 9.43 | ||
| P/OCF | 4.98 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.52 |
EPS(TTM)4.04
EY10.73%
EPS(NY)4.31
Fwd EY11.44%
FCF(TTM)3.99
FCFY10.6%
OCF(TTM)7.55
OCFY20.06%
SpS27.9
BVpS20.99
TBVpS-17.76
PEG (NY)1.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 17.65% | ||
| ROCE | 10.04% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 18.79% | ||
| OM | 23.62% | ||
| PM (TTM) | 13.28% | ||
| GM | 59.48% | ||
| FCFM | 14.31% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
ROICexc(3y)7.22%
ROICexc(5y)7.63%
ROICexgc(3y)17.6%
ROICexgc(5y)17.93%
ROCE(3y)9.58%
ROCE(5y)9.96%
ROICexcg growth 3Y0.43%
ROICexcg growth 5Y-0.86%
ROICexc growth 3Y-0.4%
ROICexc growth 5Y-4.26%
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 96.24% | ||
| Cap/Sales | 12.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.41% | ||
| Profit Quality | 107.77% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.31 |
F-Score7
WACC5.88%
ROIC/WACC1.27
Cap/Depr(3y)132.1%
Cap/Depr(5y)187.34%
Cap/Sales(3y)17.07%
Cap/Sales(5y)23.57%
Profit Quality(3y)89.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.17%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%6.09%
EPS Next Y5.35%
EPS Next 2Y4.53%
EPS Next 3Y4.29%
EPS Next 5Y5.17%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
Revenue Next Year2.79%
Revenue Next 2Y2.42%
Revenue Next 3Y2%
Revenue Next 5Y1.98%
EBIT growth 1Y5.16%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.32%
EBIT Next 3Y21.57%
EBIT Next 5Y13.82%
FCF growth 1Y58.54%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-1.06%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%