VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - FRA:BAC - US92343V1044 - Common Stock
34.005 EUR
-0.46 (-1.33%)
We assign a fundamental rating of 5 out of 10 to BAC. BAC was compared to 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! 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.
In the past 5 years BAC has always been profitable.
In the past 5 years BAC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.11%, BAC belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
With a decent Return On Equity value of 18.88%, BAC is doing good in the industry, outperforming 75.86% of the companies in the same industry.
BAC's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. BAC outperforms 75.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAC is in line with the industry average of 7.46%.
The 3 year average ROIC (7.15%) for BAC is below the current ROIC(7.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROIC | 7.38% |
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
The Profit Margin of BAC (14.43%) is better than 89.66% of its industry peers.
In the last couple of years the Profit Margin of BAC has declined.
With an excellent Operating Margin value of 23.63%, BAC belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
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 59.41%, BAC is in line with its industry, outperforming 51.72% 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 | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% |
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
BAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
The number of shares outstanding for BAC has been increased compared to 5 years ago.
Compared to 1 year ago, BAC has an improved debt to assets ratio.
2.2 Solvency
BAC has an Altman-Z score of 1.28. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
BAC has a Altman-Z score (1.28) which is in line with its industry peers.
The Debt to FCF ratio of BAC is 7.11, which is on the high side as it means it would take BAC, 7.11 years of fcf income to pay off all of its debts.
BAC has a Debt to FCF ratio of 7.11. This is comparable to the rest of the industry: BAC outperforms 58.62% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAC has dependencies on debt financing.
The Debt to Equity ratio of BAC (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.28
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.74 indicates that BAC may have some problems paying its short term obligations.
BAC has a Current ratio (0.74) which is comparable to the rest of the industry.
BAC has a Quick Ratio of 0.74. This is a bad value and indicates that BAC is not financially healthy enough and could expect problems in meeting its short term obligations.
BAC has a Quick ratio of 0.69. This is comparable to the rest of the industry: BAC outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.28%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
Looking at the last year, BAC shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
3.2 Future
The Earnings Per Share is expected to grow by 4.79% on average over the next years.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.95% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BAC is valuated reasonably with a Price/Earnings ratio of 8.31.
Based on the Price/Earnings ratio, BAC is valued cheaper than 93.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, BAC is valued rather cheaply.
BAC is valuated cheaply with a Price/Forward Earnings ratio of 7.87.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 89.66% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. BAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAC is valued a bit cheaper than 68.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 6.04 |
4.3 Compensation for Growth
BAC's 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)1.58
PEG (5Y)N/A
EPS Next 2Y4.28%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 7.08%, which is a nice return.
BAC's Dividend Yield is rather good when compared to the industry average which is at 4.91. BAC pays more dividend than 93.10% of the companies in the same industry.
BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.08% |
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 57.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
BAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.56%
EPS Next 2Y4.28%
EPS Next 3Y4.07%
FRA:BAC (11/3/2025, 5:22:22 PM)
34.005
-0.46 (-1.33%)
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 Cap143.38B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.94
Price Target42.2 (24.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.08% |
Yearly Dividend2.31
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)2
Avg EPS beat(8)-1.26%
EPS beat(12)4
Avg EPS beat(12)-1.17%
EPS beat(16)4
Avg EPS beat(16)-1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)0.82%
PT rev (3m)0.57%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 7.87 | ||
| P/S | 1.2 | ||
| P/FCF | 8.02 | ||
| P/OCF | 4.31 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.04 |
EPS(TTM)4.09
EY12.03%
EPS(NY)4.32
Fwd EY12.7%
FCF(TTM)4.24
FCFY12.46%
OCF(TTM)7.89
OCFY23.21%
SpS28.22
BVpS21.56
TBVpS-17.5
PEG (NY)1.58
PEG (5Y)N/A
Graham Number44.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROCE | 9.88% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 18.55% | ||
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% | ||
| FCFM | 15.02% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 97.11% | ||
| Cap/Sales | 12.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.28 |
F-Score7
WACC5.75%
ROIC/WACC1.28
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)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.25%
EPS Next 2Y4.28%
EPS Next 3Y4.07%
EPS Next 5Y4.79%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.82%
Revenue Next 2Y2.39%
Revenue Next 3Y2%
Revenue Next 5Y1.95%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.37%
EBIT Next 3Y21.64%
EBIT Next 5Y13.82%
FCF growth 1Y50.97%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y1.89%
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 8 / 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 8.31 and the Price/Book (PB) ratio is 1.58.
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.