VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
FRA:BAC - Deutsche Boerse Ag - US92343V1044 - Common Stock - Currency: EUR
Taking everything into account, BAC scores 5 out of 10 in our fundamental rating. BAC was compared to 30 industry peers in the Diversified Telecommunication Services industry. While BAC belongs to the best of the industry regarding profitability, there are concerns on its financial health. 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.
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
BAC's Return On Assets of 4.75% is fine compared to the rest of the industry. BAC outperforms 76.67% of its industry peers.
BAC's Return On Equity of 17.65% is fine compared to the rest of the industry. BAC outperforms 73.33% of its industry peers.
BAC's Return On Invested Capital of 7.50% is fine compared to the rest of the industry. BAC outperforms 63.33% 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 8.18%.
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 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of BAC has declined.
BAC's Operating Margin of 23.62% is amongst the best of the industry. BAC outperforms 86.67% of its industry peers.
BAC's Operating Margin has been stable in the last couple of years.
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
BAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Based on the Altman-Z score of 1.29, we must say that BAC is in the distress zone and has some risk of bankruptcy.
BAC has a Altman-Z score of 1.29. This is comparable to the rest of the industry: BAC outperforms 56.67% 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.
The Debt to FCF ratio of BAC (7.45) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that BAC has dependencies on debt financing.
BAC has a Debt to Equity ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.29 |
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 73.33% 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.
BAC's Quick ratio of 0.60 is on the low side compared to the rest of the industry. BAC is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.17% over the past year.
Measured over the past years, BAC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.93% on average per year.
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
BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.94% yearly.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.83% yearly.
EPS Next Y4.89%
EPS Next 2Y3.96%
EPS Next 3Y4.05%
EPS Next 5Y4.94%
Revenue Next Year2.84%
Revenue Next 2Y2.38%
Revenue Next 3Y1.95%
Revenue Next 5Y1.83%
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 8.99 indicates a reasonable valuation of BAC.
90.00% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, BAC is valued rather cheaply.
BAC is valuated reasonably with a Price/Forward Earnings ratio of 8.52.
Based on the Price/Forward Earnings ratio, BAC is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 63.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BAC does not grow enough to justify the current Price/Earnings ratio.
BAC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)N/A
EPS Next 2Y3.96%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.34%, BAC is a good candidate for dividend investing.
BAC's Dividend Yield is rather good when compared to the industry average which is at 4.41. BAC pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
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.
BAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.46%
EPS Next 2Y3.96%
EPS Next 3Y4.05%
FRA:BAC (8/6/2025, 3:44:12 PM)
36.59
-0.44 (-1.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.4%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap154.28B
Analysts73.71
Price Target41.96 (14.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
Yearly Dividend2.34
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)-0.86%
PT rev (3m)-0.46%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 8.52 | ||
| P/S | 1.3 | ||
| P/FCF | 9.08 | ||
| P/OCF | 4.8 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.39 |
EPS(TTM)4.07
EY11.12%
EPS(NY)4.3
Fwd EY11.74%
FCF(TTM)4.03
FCFY11.01%
OCF(TTM)7.62
OCFY20.83%
SpS28.14
BVpS21.17
TBVpS-17.92
PEG (NY)1.84
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 | 1.29 |
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 Y4.89%
EPS Next 2Y3.96%
EPS Next 3Y4.05%
EPS Next 5Y4.94%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
Revenue Next Year2.84%
Revenue Next 2Y2.38%
Revenue Next 3Y1.95%
Revenue Next 5Y1.83%
EBIT growth 1Y5.16%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.91%
EBIT Next 3Y21.43%
EBIT Next 5Y13.57%
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%