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 393 industry peers in the Banks industry. BAC has a bad profitability rating. Also its financial health evaluation is rather negative. BAC is valied quite expensively at the moment, while it does show 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.
In the past 5 years BAC has always been profitable.
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
BAC has a Return On Assets (0.79%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.91%, BAC is in line with its industry, outperforming 55.22% of the companies in the same 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 Profit Margin of 25.48%. This is in the better half of the industry: BAC outperforms 62.09% of its industry peers.
In the last couple of years the Profit Margin of BAC has declined.
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.
The number of shares outstanding for BAC has been reduced compared to 5 years ago.
Compared to 1 year ago, BAC has a worse debt to assets ratio.
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 worse Debt to FCF ratio (158.30) than 88.30% of its industry peers.
A Debt/Equity ratio of 2.38 is on the high side and indicates that BAC has dependencies on debt financing.
With a Debt to Equity ratio value of 2.38, BAC is not doing good in the industry: 91.60% 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
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.91%.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
The Revenue has been growing slightly by 6.31% in the past year.
The Revenue has been growing slightly by 2.23% on average over the past years.
EPS 1Y (TTM)4.91%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%7.23%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%4.19%
3.2 Future
Based on estimates for the next years, BAC will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y10.73%
EPS Next 2Y13.95%
EPS Next 3Y12.96%
EPS Next 5Y6.91%
Revenue Next Year6.22%
Revenue Next 2Y5.98%
Revenue Next 3Y5.4%
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
A Price/Earnings ratio of 14.10 indicates a correct valuation of BAC.
61.83% of the companies in the same industry are cheaper than BAC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.93, BAC is valued a bit cheaper.
BAC is valuated reasonably with a Price/Forward Earnings ratio of 11.29.
Based on the Price/Forward Earnings ratio, BAC is valued a bit more expensive than 60.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.78. BAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAC indicates a rather expensive valuation: BAC more expensive than 84.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.83 | ||
| 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.
BAC's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)4.03
EPS Next 2Y13.95%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 2.31%.
BAC's Dividend Yield is slightly below the industry average, which is at 3.40.
Compared to an average S&P500 Dividend Yield of 2.32, BAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of BAC is nicely growing with an annual growth rate of 13.83%!
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
36.19% 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.
DP36.19%
EPS Next 2Y13.95%
EPS Next 3Y12.96%
48.23
-0.22 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners66.49%
Inst Owner Change0.04%
Ins Owners0.12%
Ins Owner Change0.71%
Market Cap358.67B
Analysts79.31
Price Target51.98 (7.78%)
Short Float %1.27%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)4.89%
PT rev (3m)7.93%
EPS NQ rev (1m)-4.46%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 11.29 | ||
| P/S | 3.47 | ||
| P/FCF | 78.83 | ||
| P/OCF | 78.83 | ||
| P/B | 1.21 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.42
EY7.09%
EPS(NY)4.27
Fwd EY8.86%
FCF(TTM)0.61
FCFY1.27%
OCF(TTM)0.61
OCFY1.27%
SpS13.91
BVpS39.75
TBVpS30.21
PEG (NY)1.31
PEG (5Y)4.03
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)4.91%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%7.23%
EPS Next Y10.73%
EPS Next 2Y13.95%
EPS Next 3Y12.96%
EPS Next 5Y6.91%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%4.19%
Revenue Next Year6.22%
Revenue Next 2Y5.98%
Revenue Next 3Y5.4%
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