VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - FRA:BAC - US92343V1044 - Common Stock
33.71 EUR
+0.06 (+0.18%)
BAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 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.
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
Looking at the Return On Assets, with a value of 4.75%, BAC is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
With a decent Return On Equity value of 17.65%, BAC is doing good in the industry, outperforming 72.41% of the companies in the same industry.
The Return On Invested Capital of BAC (7.50%) is better than 72.41% of its industry peers.
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 7.77%.
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
BAC's Profit Margin of 13.28% is fine compared to the rest of the industry. BAC outperforms 79.31% of its industry peers.
BAC's Profit Margin has declined in the last couple of years.
BAC has a Operating Margin of 23.62%. This is amongst the best in the industry. BAC outperforms 86.21% of its industry peers.
In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
BAC has a Gross Margin (59.48%) which is in line with its industry peers.
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.
BAC has about the same amout of shares outstanding than it did 1 year ago.
BAC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BAC has been reduced compared to a year ago.
2.2 Solvency
BAC has an Altman-Z score of 1.26. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
BAC's Altman-Z score of 1.26 is in line compared to the rest of the industry. BAC outperforms 58.62% of its industry peers.
BAC has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as BAC would need 7.45 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.45, BAC perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
BAC has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BAC (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.32
WACC5.67%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BAC may have some problems paying its short term obligations.
BAC has a worse Current ratio (0.64) than 68.97% 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.
The Quick ratio of BAC (0.60) is worse than 68.97% of its industry peers.
| 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.
BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.05%.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
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
BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.79% yearly.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.95% yearly.
EPS Next Y5.25%
EPS Next 2Y4.28%
EPS Next 3Y4.07%
EPS Next 5Y4.79%
Revenue Next Year2.82%
Revenue Next 2Y2.39%
Revenue Next 3Y2%
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 8.34 indicates a reasonable valuation of BAC.
Compared to the rest of the industry, the Price/Earnings ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 89.66% of the companies listed in the same industry.
BAC is valuated cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
BAC is valuated cheaply with a Price/Forward Earnings ratio of 7.86.
Based on the Price/Forward Earnings ratio, BAC is valued cheaper than 86.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
BAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BAC is cheaper than 65.52% of the companies in the same industry.
BAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAC is cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y4.28%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.19%, BAC is a good candidate for dividend investing.
BAC's Dividend Yield is rather good when compared to the industry average which is at 4.74. BAC pays more dividend than 96.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.19% |
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
BAC pays out 62.46% of its income as dividend. 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 2Y4.28%
EPS Next 3Y4.07%
FRA:BAC (10/28/2025, 5:23:00 PM)
33.71
+0.06 (+0.18%)
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 Cap142.13B
Revenue(TTM)137.00B
Net Income(TTM)18.19B
Analysts72.94
Price Target42.06 (24.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.19% |
Yearly Dividend2.3
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)0.49%
PT rev (3m)0.24%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 7.86 | ||
| P/S | 1.21 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.46 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.09 |
EPS(TTM)4.04
EY11.98%
EPS(NY)4.29
Fwd EY12.72%
FCF(TTM)4
FCFY11.85%
OCF(TTM)7.56
OCFY22.42%
SpS27.91
BVpS21
TBVpS-17.77
PEG (NY)1.59
PEG (5Y)N/A
Graham Number43.69
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%
ROICexgc growth 3Y0.43%
ROICexgc 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 | 1.26 |
F-Score7
WACC5.67%
ROIC/WACC1.32
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 Y5.25%
EPS Next 2Y4.28%
EPS Next 3Y4.07%
EPS Next 5Y4.79%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
Revenue Next Year2.82%
Revenue Next 2Y2.39%
Revenue Next 3Y2%
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%
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 5 / 10 to BAC.DE.
What is the valuation status of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to VERIZON COMMUNICATIONS INC (BAC.DE). This can be considered as Undervalued.
What is the profitability of BAC stock?
VERIZON COMMUNICATIONS INC (BAC.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (BAC.DE) is 8.34 and the Price/Book (PB) ratio is 1.61.
What is the financial health of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 2 / 10.