BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis
USA - NYSE:BAC - US0605051046 - Common Stock
52.87 USD
-0.15 (-0.28%)
52.87 USD
0 (0%)
Overall BAC gets a fundamental rating of 3 out of 10. We evaluated BAC against 390 industry peers in the Banks industry. BAC may be in some trouble as it scores bad on both profitability and health. BAC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BAC had positive earnings in the past year.
In the past year BAC has reported a negative cash flow from operations.
BAC had positive earnings in each of the past 5 years.
In multiple years BAC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BAC (0.77%) is comparable to the rest of the industry.
BAC's Return On Equity of 8.88% is in line compared to the rest of the industry. BAC outperforms 53.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 8.88% | ||
| 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
With a decent Profit Margin value of 25.44%, BAC is doing good in the industry, outperforming 61.79% of the companies in the same industry.
In the last couple of years the Profit Margin of BAC has declined.
BAC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 25.44% | ||
| 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.
Compared to 5 years ago, BAC has less shares outstanding
BAC has a worse debt/assets ratio than last year.
2.2 Solvency
BAC has a Debt/Equity ratio of 2.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.50, BAC is doing worse than 90.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.42%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, which is quite good.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.90%.
The Revenue has been growing slightly by 2.23% on average over the past years.
EPS 1Y (TTM)15.77%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%30.86%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%10.79%
3.2 Future
The Earnings Per Share is expected to grow by 9.12% on average over the next years. This is quite good.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
EPS Next Y16.46%
EPS Next 2Y15.41%
EPS Next 3Y15.25%
EPS Next 5Y9.12%
Revenue Next Year7.65%
Revenue Next 2Y6.89%
Revenue Next 3Y6.26%
Revenue Next 5Y4.74%
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
The Price/Earnings ratio is 14.41, which indicates a correct valuation of BAC.
Compared to the rest of the industry, the Price/Earnings ratio of BAC indicates a slightly more expensive valuation: BAC is more expensive than 68.21% of the companies listed in the same industry.
BAC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 12.07 indicates a correct valuation of BAC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a slightly more expensive valuation: BAC is more expensive than 66.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, BAC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BAC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BAC's earnings are expected to grow with 15.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)4.12
EPS Next 2Y15.41%
EPS Next 3Y15.25%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 3.50, BAC is paying slightly less dividend.
BAC's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.83%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
BAC pays out 35.80% 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.
DP35.8%
EPS Next 2Y15.41%
EPS Next 3Y15.25%
52.87
-0.15 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners67.04%
Inst Owner Change-0.06%
Ins Owners0.12%
Ins Owner Change-0.52%
Market Cap387.51B
Revenue(TTM)107.26B
Net Income(TTM)26.59B
Analysts80
Price Target54.16 (2.44%)
Short Float %1.59%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend1.23
Dividend Growth(5Y)13.83%
DP35.8%
Div Incr Years11
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.9%
Min EPS beat(2)2.97%
Max EPS beat(2)8.83%
EPS beat(4)4
Avg EPS beat(4)5.42%
Min EPS beat(4)2.97%
Max EPS beat(4)8.83%
EPS beat(8)8
Avg EPS beat(8)5.5%
EPS beat(12)12
Avg EPS beat(12)6.25%
EPS beat(16)16
Avg EPS beat(16)6.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.92%
Revenue beat(8)4
Avg Revenue beat(8)-0.91%
Revenue beat(12)7
Avg Revenue beat(12)-0.08%
Revenue beat(16)8
Avg Revenue beat(16)-0.06%
PT rev (1m)2.15%
PT rev (3m)4.19%
EPS NQ rev (1m)2.03%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)3.37%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 12.07 | ||
| P/S | 3.71 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.29 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.67
EY6.94%
EPS(NY)4.38
Fwd EY8.29%
FCF(TTM)-3.09
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS14.26
BVpS40.88
TBVpS31.2
PEG (NY)0.88
PEG (5Y)4.12
Graham Number58.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 8.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 25.44% | ||
| GM | N/A | ||
| FCFM | 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC11.42%
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)15.77%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%30.86%
EPS Next Y16.46%
EPS Next 2Y15.41%
EPS Next 3Y15.25%
EPS Next 5Y9.12%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%10.79%
Revenue Next Year7.65%
Revenue Next 2Y6.89%
Revenue Next 3Y6.26%
Revenue Next 5Y4.74%
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-150.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-150.8%
OCF growth 3YN/A
OCF growth 5YN/A
BANK OF AMERICA CORP / BAC FAQ
What is the ChartMill fundamental rating of BANK OF AMERICA CORP (BAC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to BAC.
What is the valuation status of BANK OF AMERICA CORP (BAC) stock?
ChartMill assigns a valuation rating of 3 / 10 to BANK OF AMERICA CORP (BAC). This can be considered as Overvalued.
What is the profitability of BAC stock?
BANK OF AMERICA CORP (BAC) has a profitability rating of 2 / 10.
What are the PE and PB ratios of BANK OF AMERICA CORP (BAC) stock?
The Price/Earnings (PE) ratio for BANK OF AMERICA CORP (BAC) is 14.41 and the Price/Book (PB) ratio is 1.29.
What is the financial health of BANK OF AMERICA CORP (BAC) stock?
The financial health rating of BANK OF AMERICA CORP (BAC) is 1 / 10.