BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAC - US0605051046 - Common Stock
54.08 USD
+0.54 (+1.01%)
54.14 USD
+0.06 (+0.11%)
Taking everything into account, BAC scores 3 out of 10 in our fundamental rating. BAC was compared to 387 industry peers in the Banks industry. Both the profitability and financial health of BAC have multiple concerns. BAC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BAC had positive earnings in the past year.
In the past year BAC had a positive cash flow from operations.
In the past 5 years BAC has always been profitable.
In multiple years BAC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.83%, BAC is in line with its industry, outperforming 45.48% of the companies in the same industry.
BAC's Return On Equity of 9.29% is in line compared to the rest of the industry. BAC outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 9.29% | ||
| 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
Looking at the Profit Margin, with a value of 26.34%, BAC is in the better half of the industry, outperforming 62.27% 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) | 26.34% | ||
| 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.
Compared to 1 year ago, BAC has less shares outstanding
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
The Debt to FCF ratio of BAC is 11.51, which is on the high side as it means it would take BAC, 11.51 years of fcf income to pay off all of its debts.
BAC has a Debt to FCF ratio of 11.51. This is in the lower half of the industry: BAC underperforms 79.59% of its industry peers.
A Debt/Equity ratio of 2.33 is on the high side and indicates that BAC has dependencies on debt financing.
BAC has a worse Debt to Equity ratio (2.33) than 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 11.51 | ||
| 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
The Earnings Per Share has grown by an nice 15.77% over the past year.
Measured over the past 5 years, BAC shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
BAC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.90%.
Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 2.23% on average per year.
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
BAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.96% yearly.
The Revenue is expected to grow by 5.54% on average over the next years.
EPS Next Y17.33%
EPS Next 2Y15.65%
EPS Next 3Y15.57%
EPS Next 5Y13.96%
Revenue Next Year7.6%
Revenue Next 2Y6.89%
Revenue Next 3Y6.24%
Revenue Next 5Y5.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.74 indicates a correct valuation of BAC.
Based on the Price/Earnings ratio, BAC is valued a bit more expensive than 65.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. BAC is valued slightly cheaper when compared to this.
BAC is valuated correctly with a Price/Forward Earnings ratio of 12.29.
Based on the Price/Forward Earnings ratio, BAC is valued a bit more expensive than the industry average as 65.37% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, BAC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BAC is valued cheaply inside the industry as 88.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| 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.
A more expensive valuation may be justified as BAC's earnings are expected to grow with 15.57% in the coming years.
PEG (NY)0.85
PEG (5Y)4.21
EPS Next 2Y15.65%
EPS Next 3Y15.57%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 2.07%.
BAC's Dividend Yield is slightly below the industry average, which is at 3.11.
Compared to an average S&P500 Dividend Yield of 2.31, BAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
33.55% of the earnings are spent on dividend by BAC. This is a low number and sustainable payout ratio.
BAC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP33.55%
EPS Next 2Y15.65%
EPS Next 3Y15.57%
54.08
+0.54 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.82%
Inst Owner Change2.76%
Ins Owners0.11%
Ins Owner Change-0.27%
Market Cap394.92B
Revenue(TTM)107.26B
Net Income(TTM)28.25B
Analysts80.67
Price Target58.04 (7.32%)
Short Float %1.7%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.23
Dividend Growth(5Y)13.83%
DP33.55%
Div Incr Years11
Div Non Decr Years15
Ex-Date
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)1.16%
PT rev (3m)9.56%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)3.02%
EPS NY rev (1m)0.13%
EPS NY rev (3m)4.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.29 | ||
| P/S | 3.68 | ||
| P/FCF | 6.42 | ||
| P/OCF | 6.42 | ||
| P/B | 1.3 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.67
EY6.79%
EPS(NY)4.4
Fwd EY8.14%
FCF(TTM)8.42
FCFY15.57%
OCF(TTM)8.42
OCFY15.57%
SpS14.69
BVpS41.65
TBVpS32.2
PEG (NY)0.85
PEG (5Y)4.21
Graham Number58.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 9.29% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 26.34% | ||
| GM | N/A | ||
| FCFM | 57.31% |
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-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 11.51 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 217.57% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
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 Y17.33%
EPS Next 2Y15.65%
EPS Next 3Y15.57%
EPS Next 5Y13.96%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%10.79%
Revenue Next Year7.6%
Revenue Next 2Y6.89%
Revenue Next 3Y6.24%
Revenue Next 5Y5.54%
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 1Y42.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.11%
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 4 / 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 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 14.74 and the Price/Book (PB) ratio is 1.3.
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.