BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis

NYSE:BAC • US0605051046

53.06 USD
+0.29 (+0.55%)
At close: Feb 20, 2026
53.0002 USD
-0.06 (-0.11%)
After Hours: 2/20/2026, 8:18:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to BAC. BAC was compared to 381 industry peers in the Banks industry. BAC has a bad profitability rating. Also its financial health evaluation is rather negative. BAC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

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.
  • BAC had negative operating cash flow in 4 of the past 5 years.
BAC Yearly Net Income VS EBIT VS OCF VS FCFBAC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

1.2 Ratios

  • BAC has a Return On Assets (0.83%) which is in line with its industry peers.
  • The Return On Equity of BAC (9.34%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 0.83%
ROE 9.34%
ROIC N/A
ROA(3y)0.8%
ROA(5y)0.85%
ROE(3y)8.91%
ROE(5y)9.51%
ROIC(3y)N/A
ROIC(5y)N/A
BAC Yearly ROA, ROE, ROICBAC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 26.20%, BAC is in the better half of the industry, outperforming 61.42% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BAC has grown nicely.
  • The Operating Margin and Gross Margin are not available for BAC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 26.2%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.12%
PM growth 5Y5.93%
GM growth 3YN/A
GM growth 5YN/A
BAC Yearly Profit, Operating, Gross MarginsBAC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

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.
  • Compared to 1 year ago, BAC has a worse debt to assets ratio.
BAC Yearly Shares OutstandingBAC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
BAC Yearly Total Debt VS Total AssetsBAC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T

2.2 Solvency

  • BAC has a debt to FCF ratio of 11.47. This is a negative value and a sign of low solvency as BAC would need 11.47 years to pay back of all of its debts.
  • The Debt to FCF ratio of BAC (11.47) is worse than 79.00% of its industry peers.
  • A Debt/Equity ratio of 2.31 is on the high side and indicates that BAC has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 2.31, BAC is doing worse than 89.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.31
Debt/FCF 11.47
Altman-Z N/A
ROIC/WACCN/A
WACC12.2%
BAC Yearly LT Debt VS Equity VS FCFBAC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100B 200B 300B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
BAC Yearly Current Assets VS Current LiabilitesBAC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 16.41% over the past year.
  • BAC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.79% yearly.
  • BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.06%.
  • Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 5.75% on average per year.
EPS 1Y (TTM)16.41%
EPS 3Y5.73%
EPS 5Y15.79%
EPS Q2Q%19.51%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y6%
Revenue growth 5Y5.75%
Sales Q2Q%11.89%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.09% 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 5.55% yearly.
EPS Next Y14.21%
EPS Next 2Y14.36%
EPS Next 3Y13.92%
EPS Next 5Y12.09%
Revenue Next Year8.08%
Revenue Next 2Y6.99%
Revenue Next 3Y5.9%
Revenue Next 5Y5.55%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 stable.
BAC Yearly Revenue VS EstimatesBAC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B
BAC Yearly EPS VS EstimatesBAC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • BAC is valuated correctly with a Price/Earnings ratio of 13.85.
  • The rest of the industry has a similar Price/Earnings ratio as BAC.
  • When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (26.99), we can say BAC is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 12.13 indicates a correct valuation of BAC.
  • BAC's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, BAC is valued rather cheaply.
Industry RankSector Rank
PE 13.85
Fwd PE 12.13
BAC Price Earnings VS Forward Price EarningsBAC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • BAC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAC is cheaper than 90.03% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.23
EV/EBITDA N/A
BAC Per share dataBAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as BAC's earnings are expected to grow with 13.92% in the coming years.
PEG (NY)0.97
PEG (5Y)0.88
EPS Next 2Y14.36%
EPS Next 3Y13.92%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • BAC has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
  • BAC's Dividend Yield is slightly below the industry average, which is at 2.78.
  • BAC's Dividend Yield is comparable with the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 2.13%

5.2 History

  • The dividend of BAC is nicely growing with an annual growth rate of 13.83%!
  • BAC has paid a dividend for at least 10 years, which is 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
BAC Yearly Dividends per shareBAC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 33.38% of the earnings are spent on dividend by BAC. This is a low number and sustainable payout ratio.
  • BAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.38%
EPS Next 2Y14.36%
EPS Next 3Y13.92%
BAC Yearly Income VS Free CF VS DividendBAC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B
BAC Dividend Payout.BAC Dividend Payout, showing the Payout Ratio.BAC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

BANK OF AMERICA CORP

NYSE:BAC (2/20/2026, 8:18:03 PM)

After market: 53.0002 -0.06 (-0.11%)

53.06

+0.29 (+0.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-14
Earnings (Next)04-15
Inst Owners69.83%
Inst Owner Change2.14%
Ins Owners0.1%
Ins Owner Change-0.21%
Market Cap382.69B
Revenue(TTM)110.28B
Net Income(TTM)28.39B
Analysts79.33
Price Target61.97 (16.79%)
Short Float %1.36%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Yearly Dividend1.23
Dividend Growth(5Y)13.83%
DP33.38%
Div Incr Years11
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.64%
Min EPS beat(2)2.97%
Max EPS beat(2)10.3%
EPS beat(4)4
Avg EPS beat(4)6.88%
Min EPS beat(4)2.97%
Max EPS beat(4)10.3%
EPS beat(8)8
Avg EPS beat(8)5.67%
EPS beat(12)12
Avg EPS beat(12)6.79%
EPS beat(16)16
Avg EPS beat(16)6.33%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)1.67%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)1.67%
Revenue beat(8)5
Avg Revenue beat(8)-0.67%
Revenue beat(12)7
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)0.2%
PT rev (3m)8.01%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)1.71%
Revenue NY rev (3m)2.62%
Valuation
Industry RankSector Rank
PE 13.85
Fwd PE 12.13
P/S 3.53
P/FCF 6.23
P/OCF 6.23
P/B 1.26
P/tB 1.64
EV/EBITDA N/A
EPS(TTM)3.83
EY7.22%
EPS(NY)4.37
Fwd EY8.24%
FCF(TTM)8.52
FCFY16.06%
OCF(TTM)8.52
OCFY16.06%
SpS15.03
BVpS42.17
TBVpS32.34
PEG (NY)0.97
PEG (5Y)0.88
Graham Number60.28
Profitability
Industry RankSector Rank
ROA 0.83%
ROE 9.34%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 26.2%
GM N/A
FCFM 56.71%
ROA(3y)0.8%
ROA(5y)0.85%
ROE(3y)8.91%
ROE(5y)9.51%
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-2.12%
PM growth 5Y5.93%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.31
Debt/FCF 11.47
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 216.49%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC12.2%
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)16.41%
EPS 3Y5.73%
EPS 5Y15.79%
EPS Q2Q%19.51%
EPS Next Y14.21%
EPS Next 2Y14.36%
EPS Next 3Y13.92%
EPS Next 5Y12.09%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y6%
Revenue growth 5Y5.75%
Sales Q2Q%11.89%
Revenue Next Year8.08%
Revenue Next 2Y6.99%
Revenue Next 3Y5.9%
Revenue Next 5Y5.55%
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 1Y3181.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3181.3%
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 for BAC stock?

ChartMill assigns a valuation rating of 5 / 10 to BANK OF AMERICA CORP (BAC). This can be considered as Fairly Valued.


What is the profitability of BAC stock?

BANK OF AMERICA CORP (BAC) has a profitability rating of 3 / 10.


What is the expected EPS growth for BANK OF AMERICA CORP (BAC) stock?

The Earnings per Share (EPS) of BANK OF AMERICA CORP (BAC) is expected to grow by 14.21% in the next year.


Can you provide the dividend sustainability for BAC stock?

The dividend rating of BANK OF AMERICA CORP (BAC) is 5 / 10 and the dividend payout ratio is 33.38%.