BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis
NYSE:BAC - New York Stock Exchange, Inc. - US0605051046 - Common Stock - Currency: USD
Taking everything into account, BAC scores 3 out of 10 in our fundamental rating. BAC was compared to 396 industry peers in the Banks industry. Both the profitability and financial health of BAC have multiple concerns. BAC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BAC was profitable.
BAC had a positive operating cash flow in the past year.
BAC had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: BAC reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.79%, BAC perfoms like the industry average, outperforming 45.96% of the companies in the same industry.
The Return On Equity of BAC (8.91%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 8.91% | ||
| ROIC | N/A |
ROA(3y)0.81%
ROA(5y)0.79%
ROE(3y)8.89%
ROE(5y)8.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BAC has a better Profit Margin (25.48%) than 62.63% of its industry peers.
BAC's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for BAC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25.48% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.96%
PM growth 5Y-2.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BAC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for BAC has been reduced compared to 1 year ago.
BAC has less shares outstanding than it did 5 years ago.
BAC has a worse debt/assets ratio than last year.
2.2 Solvency
BAC has a debt to FCF ratio of 158.30. This is a negative value and a sign of low solvency as BAC would need 158.30 years to pay back of all of its debts.
BAC has a Debt to FCF ratio of 158.30. This is amonst the worse of the industry: BAC underperforms 89.39% of its industry peers.
BAC has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.38, BAC is not doing good in the industry: 91.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 158.3 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.74%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.51% over the past year.
BAC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.39%.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.23% yearly.
EPS 1Y (TTM)1.51%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%8.43%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%5.91%
3.2 Future
BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 3.75% on average per year.
EPS Next Y12.2%
EPS Next 2Y14.54%
EPS Next 3Y13.83%
EPS Next 5Y6.91%
Revenue Next Year6.28%
Revenue Next 2Y5.84%
Revenue Next 3Y5.22%
Revenue Next 5Y3.75%
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.
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
BAC is valuated correctly with a Price/Earnings ratio of 13.30.
BAC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. BAC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.35, the valuation of BAC can be described as very reasonable.
BAC's Price/Forward Earnings is on the same level as the industry average.
BAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
BAC's Price/Free Cash Flow ratio is rather expensive when compared to the industry. BAC is more expensive than 86.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BAC's earnings are expected to grow with 13.83% in the coming years.
PEG (NY)1.09
PEG (5Y)3.8
EPS Next 2Y14.54%
EPS Next 3Y13.83%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 2.34%.
Compared to an average industry Dividend Yield of 3.34, BAC is paying slightly less dividend.
BAC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
On average, the dividend of BAC grows each year by 13.83%, which is quite nice.
BAC has been paying a dividend for at least 10 years, so it has a reliable track record.
BAC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.83%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
BAC pays out 36.19% of its income as dividend. This is a sustainable payout ratio.
BAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.19%
EPS Next 2Y14.54%
EPS Next 3Y13.83%
44.69
-0.08 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners65.89%
Inst Owner Change0.06%
Ins Owners0.12%
Ins Owner Change1.02%
Market Cap337.86B
Analysts82.07
Price Target48.43 (8.37%)
Short Float %1.4%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend1.23
Dividend Growth(5Y)13.83%
DP36.19%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.12%
Min EPS beat(2)5.4%
Max EPS beat(2)8.83%
EPS beat(4)4
Avg EPS beat(4)5.47%
Min EPS beat(4)3.15%
Max EPS beat(4)8.83%
EPS beat(8)8
Avg EPS beat(8)5.58%
EPS beat(12)12
Avg EPS beat(12)6.29%
EPS beat(16)16
Avg EPS beat(16)6.84%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.23%
Max Revenue beat(2)0.92%
Revenue beat(4)3
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-0.19%
Max Revenue beat(4)0.92%
Revenue beat(8)5
Avg Revenue beat(8)-0.72%
Revenue beat(12)7
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)-0.14%
PT rev (1m)-6.55%
PT rev (3m)-6.56%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-4.24%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 10.35 | ||
| P/S | 3.27 | ||
| P/FCF | 74.25 | ||
| P/OCF | 74.25 | ||
| P/B | 1.14 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.36
EY7.52%
EPS(NY)4.32
Fwd EY9.66%
FCF(TTM)0.6
FCFY1.35%
OCF(TTM)0.6
OCFY1.35%
SpS13.68
BVpS39.1
TBVpS29.72
PEG (NY)1.09
PEG (5Y)3.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 8.91% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.48% | ||
| GM | N/A | ||
| FCFM | 4.4% |
ROA(3y)0.81%
ROA(5y)0.79%
ROE(3y)8.89%
ROE(5y)8.81%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.96%
PM growth 5Y-2.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 158.3 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 17.27% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC11.74%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.51%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%8.43%
EPS Next Y12.2%
EPS Next 2Y14.54%
EPS Next 3Y13.83%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%5.91%
Revenue Next Year6.28%
Revenue Next 2Y5.84%
Revenue Next 3Y5.22%
Revenue Next 5Y3.75%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-83.63%
OCF growth 3YN/A
OCF growth 5YN/A