VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
FRA:BAC • US92343V1044
40.855 EUR
-0.65 (-1.55%)
Last: Feb 18, 2026, 07:00 PM
Taking everything into account, BAC scores 4 out of 10 in our fundamental rating. BAC was compared to 33 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of BAC while its profitability can be described as average. BAC has a decent growth rate and is not valued too expensively. Finally BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BAC had positive earnings in the past year.
- BAC had a positive operating cash flow in the past year.
- In the past 5 years BAC has always been profitable.
- BAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BAC has a Return On Assets of 4.25%. This is in the better half of the industry: BAC outperforms 63.64% of its industry peers.
- With a decent Return On Equity value of 16.44%, BAC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- With a Return On Invested Capital value of 6.85%, BAC perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BAC is in line with the industry average of 8.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 16.44% | ||
| ROIC | 6.85% |
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.32%
ROIC(5y)7.41%
1.3 Margins
- The Profit Margin of BAC (12.43%) is better than 72.73% of its industry peers.
- In the last couple of years the Profit Margin of BAC has declined.
- BAC has a better Operating Margin (21.76%) than 75.76% of its industry peers.
- BAC's Operating Margin has declined in the last couple of years.
- BAC has a Gross Margin (58.92%) which is in line with its industry peers.
- 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 | 21.76% | ||
| PM (TTM) | 12.43% | ||
| GM | 58.92% |
OM growth 3Y-1.15%
OM growth 5Y-1.68%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.24%
GM growth 5Y-0.39%
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.
- BAC has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BAC has been increased compared to 5 years ago.
- BAC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.31, we must say that BAC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.31, BAC is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- The Debt to FCF ratio of BAC is 8.04, which is on the high side as it means it would take BAC, 8.04 years of fcf income to pay off all of its debts.
- BAC's Debt to FCF ratio of 8.04 is in line compared to the rest of the industry. BAC outperforms 51.52% of its industry peers.
- BAC has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
- BAC has a worse Debt to Equity ratio (1.34) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.06
WACC6.45%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that BAC may have some problems paying its short term obligations.
- BAC has a better Current ratio (0.91) than 72.73% of its industry peers.
- BAC has a Quick Ratio of 0.91. This is a bad value and indicates that BAC is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of BAC (0.87) is better than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.61%.
- The Earnings Per Share has been decreasing by -0.79% on average over the past years.
- BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.52%.
- Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 1.50% on average per year.
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
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 7.48% on average per year.
- BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
Revenue Next 5Y1.91%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 10.27, the valuation of BAC can be described as reasonable.
- BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 87.88% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (27.27), we can say BAC is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.66 indicates a reasonable valuation of BAC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 84.85% of the companies listed 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 28.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAC.
- 69.70% 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 | 10.37 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.61
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- BAC has a Yearly Dividend Yield of 6.36%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.14, BAC pays a better dividend. On top of this BAC pays more dividend than 87.88% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
- The dividend of BAC has a limited annual growth rate of 1.96%.
Dividend Growth(5Y)1.96%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 66.85% of the earnings are spent on dividend by BAC. This is not a sustainable payout ratio.
- BAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.85%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
FRA:BAC (2/18/2026, 7:00:00 PM)
40.855
-0.65 (-1.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30 2026-01-30/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap172.29B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.57
Price Target42.33 (3.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend2.3
Dividend Growth(5Y)1.96%
DP66.85%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)-0.02%
Min EPS beat(4)-1.2%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-0.91%
EPS beat(12)5
Avg EPS beat(12)-0.91%
EPS beat(16)5
Avg EPS beat(16)-1.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.71%
Revenue beat(12)0
Avg Revenue beat(12)-2.96%
Revenue beat(16)0
Avg Revenue beat(16)-2.82%
PT rev (1m)2.2%
PT rev (3m)-0.72%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)1.18%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)2.36%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.66 | ||
| P/S | 1.48 | ||
| P/FCF | 10.37 | ||
| P/OCF | 5.5 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.09 |
EPS(TTM)3.98
EY9.74%
EPS(NY)4.23
Fwd EY10.35%
FCF(TTM)3.94
FCFY9.64%
OCF(TTM)7.43
OCFY18.2%
SpS27.67
BVpS20.91
TBVpS-17.19
PEG (NY)1.61
PEG (5Y)N/A
Graham Number43.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 16.44% | ||
| ROCE | 8.8% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 17.68% | ||
| OM | 21.76% | ||
| PM (TTM) | 12.43% | ||
| GM | 58.92% | ||
| FCFM | 14.24% |
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.32%
ROIC(5y)7.41%
ROICexc(3y)7.5%
ROICexc(5y)7.55%
ROICexgc(3y)18.41%
ROICexgc(5y)18.44%
ROCE(3y)9.4%
ROCE(5y)9.52%
ROICexgc growth 3Y0.32%
ROICexgc growth 5Y-1.42%
ROICexc growth 3Y-0.39%
ROICexc growth 5Y-4.81%
OM growth 3Y-1.15%
OM growth 5Y-1.68%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.24%
GM growth 5Y-0.39%
F-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 95.16% | ||
| Cap/Sales | 12.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.7% | ||
| Profit Quality | 114.57% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.31 |
F-Score4
WACC6.45%
ROIC/WACC1.06
Cap/Depr(3y)111.69%
Cap/Depr(5y)182.07%
Cap/Sales(3y)14.77%
Cap/Sales(5y)22.93%
Profit Quality(3y)111.28%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
Revenue Next 5Y1.91%
EBIT growth 1Y-5.19%
EBIT growth 3Y-0.82%
EBIT growth 5Y-0.21%
EBIT Next Year64.6%
EBIT Next 3Y19.95%
EBIT Next 5Y12.97%
FCF growth 1Y3.98%
FCF growth 3Y23.68%
FCF growth 5Y-1.71%
OCF growth 1Y0.61%
OCF growth 3Y0%
OCF growth 5Y-2.32%
VERIZON COMMUNICATIONS INC / BAC.DE FAQ
What is the ChartMill fundamental rating of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BAC.DE.
What is the valuation status for BAC stock?
ChartMill assigns a valuation rating of 6 / 10 to VERIZON COMMUNICATIONS INC (BAC.DE). This can be considered as Fairly Valued.
What is the profitability of BAC stock?
VERIZON COMMUNICATIONS INC (BAC.DE) has a profitability rating of 5 / 10.
What is the expected EPS growth for VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The Earnings per Share (EPS) of VERIZON COMMUNICATIONS INC (BAC.DE) is expected to grow by 6.36% in the next year.
Can you provide the dividend sustainability for BAC stock?
The dividend rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 7 / 10 and the dividend payout ratio is 66.85%.