VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock
34.55 EUR
+0.5 (+1.48%)
Taking everything into account, BAC scores 5 out of 10 in our fundamental rating. BAC was compared to 33 industry peers in the Diversified Telecommunication Services industry. BAC has an excellent profitability rating, but there are concerns on its financial health. BAC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BAC was profitable.
BAC had a positive operating cash flow in the past year.
Each year in the past 5 years BAC has been profitable.
In the past 5 years BAC always reported a positive cash flow from operatings.
1.2 Ratios
BAC has a Return On Assets of 5.11%. This is in the better half of the industry: BAC outperforms 72.73% of its industry peers.
BAC has a better Return On Equity (18.88%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.38%, BAC is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 7.68%.
The last Return On Invested Capital (7.38%) for BAC is above the 3 year average (7.15%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 14.43%, BAC belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Profit Margin of BAC has declined.
Looking at the Operating Margin, with a value of 23.63%, BAC belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
BAC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.41%, BAC is in line with its industry, outperforming 48.48% 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 | 23.63% | ||
| 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
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.
BAC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that BAC is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.28, BAC is doing good in the industry, outperforming 75.76% of the companies in the same industry.
BAC has a debt to FCF ratio of 7.11. This is a slightly negative value and a sign of low solvency as BAC would need 7.11 years to pay back of 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 57.58% of its industry peers.
BAC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external 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
BAC has a Current 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.
With a Current ratio value of 0.74, BAC perfoms like the industry average, outperforming 57.58% of the companies in the same 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 (0.69) which is comparable to the rest of the industry.
| 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%.
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 2.42%.
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
BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.16% yearly.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.61% on average per year.
EPS Next Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.61%
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
The Price/Earnings ratio is 8.64, which indicates a very decent valuation of BAC.
90.91% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
BAC is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.23, the valuation of BAC can be described as reasonable.
78.79% of the companies in the same industry are more expensive than BAC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.23 |
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 63.64% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The 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)1.66
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 6.85%, which is a nice return.
BAC's Dividend Yield is rather good when compared to the industry average which is at 3.32. BAC pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
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 2Y3.86%
EPS Next 3Y3.87%
FRA:BAC (12/29/2025, 4:14:57 PM)
34.55
+0.5 (+1.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners68.86%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap145.68B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target41.42 (19.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
Yearly Dividend2.27
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)0.45%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.23 | ||
| P/S | 1.25 | ||
| P/FCF | 8.32 | ||
| P/OCF | 4.47 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.07 |
EPS(TTM)4
EY11.58%
EPS(NY)4.2
Fwd EY12.16%
FCF(TTM)4.15
FCFY12.03%
OCF(TTM)7.74
OCFY22.4%
SpS27.66
BVpS21.14
TBVpS-17.15
PEG (NY)1.66
PEG (5Y)N/A
Graham Number43.61
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 Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y4.16%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.43%
EBIT Next 3Y21.43%
EBIT Next 5Y13.42%
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 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 8.64 and the Price/Book (PB) ratio is 1.63.
What is the financial health of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 3 / 10.