VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - FRA:BAC - US92343V1044 - Common Stock
37.24 EUR
+0.02 (+0.05%)
Overall BAC gets a fundamental rating of 5 out of 10. We evaluated BAC against 30 industry peers in the Diversified Telecommunication Services industry. While BAC has a great profitability rating, there are quite some concerns on its financial health. BAC has a correct valuation and a medium growth rate. BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BAC had positive earnings in the past year.
In the past year BAC had a positive cash flow from operations.
Each year in the past 5 years BAC has been profitable.
Each year in the past 5 years BAC had a positive operating cash flow.
1.2 Ratios
BAC has a Return On Assets of 4.75%. This is amongst the best in the industry. BAC outperforms 83.33% of its industry peers.
With a decent Return On Equity value of 17.65%, BAC is doing good in the industry, outperforming 76.67% of the companies in the same industry.
BAC's Return On Invested Capital of 7.50% is fine compared to the rest of the industry. BAC outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 7.61%.
The last Return On Invested Capital (7.50%) for BAC is above the 3 year average (7.15%), which is a sign of increasing profitability.
| 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
BAC has a better Profit Margin (13.28%) than 86.67% of its industry peers.
BAC's Profit Margin has declined in the last couple of years.
The Operating Margin of BAC (23.62%) is better than 90.00% of its industry peers.
In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.48%, BAC is in line with its industry, outperforming 50.00% of the companies in the same industry.
BAC's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BAC is still creating some value.
Compared to 1 year ago, BAC has about the same amount of shares outstanding.
Compared to 5 years ago, BAC has more shares outstanding
BAC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that BAC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BAC (1.30) is comparable to the rest of the 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's Debt to FCF ratio of 7.45 is in line compared to the rest of the industry. BAC outperforms 60.00% 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.
Looking at the Debt to Equity ratio, with a value of 1.20, BAC is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.27
WACC5.91%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BAC may have some problems paying its short term obligations.
BAC's Current ratio of 0.64 is on the low side compared to the rest of the industry. BAC is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.60 indicates that BAC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, BAC is doing worse than 66.67% 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%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.05%.
Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
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.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.95% yearly.
EPS Next Y5.46%
EPS Next 2Y4.5%
EPS Next 3Y4.29%
EPS Next 5Y5.17%
Revenue Next Year2.78%
Revenue Next 2Y2.44%
Revenue Next 3Y2.05%
Revenue Next 5Y1.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.24 indicates a reasonable valuation of BAC.
93.33% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (27.54), we can say BAC is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.67, the valuation of BAC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BAC is valued cheaper than 86.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 6.45 |
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)1.69
PEG (5Y)N/A
EPS Next 2Y4.5%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.37%, BAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.23, BAC pays a better dividend. On top of this BAC pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.37% |
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 2Y4.5%
EPS Next 3Y4.29%
FRA:BAC (9/29/2025, 10:00:02 AM)
37.24
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.92%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap157.02B
Analysts72.94
Price Target41.86 (12.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.37% |
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)-1.56%
PT rev (3m)-1.1%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.34 | ||
| P/FCF | 9.35 | ||
| P/OCF | 4.94 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)4.03
EY10.82%
EPS(NY)4.29
Fwd EY11.53%
FCF(TTM)3.98
FCFY10.7%
OCF(TTM)7.54
OCFY20.24%
SpS27.84
BVpS20.94
TBVpS-17.73
PEG (NY)1.69
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 | 1.3 |
F-Score7
WACC5.91%
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 Y5.46%
EPS Next 2Y4.5%
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 Year2.78%
Revenue Next 2Y2.44%
Revenue Next 3Y2.05%
Revenue Next 5Y1.95%
EBIT growth 1Y5.16%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.37%
EBIT Next 3Y21.64%
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%