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BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis

NYSE:BAC - New York Stock Exchange, Inc. - US0605051046 - Common Stock - Currency: USD

36.92  -0.49 (-1.31%)

After market: 36.92 0 (0%)

Fundamental Rating

2

Overall BAC gets a fundamental rating of 2 out of 10. We evaluated BAC against 398 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

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1

1. Profitability

1.1 Basic Checks

In the past year BAC was profitable.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B

1.2 Ratios

BAC has a Return On Assets of 0.19%. This is amonst the worse of the industry: BAC underperforms 87.69% of its industry peers.
BAC has a Return On Equity of 2.08%. This is amonst the worse of the industry: BAC underperforms 86.18% of its industry peers.
Industry RankSector Rank
ROA 0.19%
ROE 2.08%
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
BAC Yearly ROA, ROE, ROICBAC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 6.03%, BAC is doing worse than 87.44% of the companies in the same industry.
BAC's Profit Margin has declined in the last couple of years.
BAC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 6.03%
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
BAC Yearly Profit, Operating, Gross MarginsBAC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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1

2. Health

2.1 Basic Checks

BAC does not have a ROIC to compare to the WACC, probably because it is not profitable.
BAC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BAC has less shares outstanding
Compared to 1 year ago, BAC has a worse debt to assets ratio.
BAC Yearly Shares OutstandingBAC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
BAC Yearly Total Debt VS Total AssetsBAC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T

2.2 Solvency

A Debt/Equity ratio of 2.14 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 2.14, BAC is doing worse than 91.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.14
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC11.88%
BAC Yearly LT Debt VS Equity VS FCFBAC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100B 200B

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B

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4

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%.
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)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

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.
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 Y11.9%
EPS Next 2Y14.26%
EPS Next 3Y12.9%
EPS Next 5Y6.91%
Revenue Next Year5.96%
Revenue Next 2Y6.03%
Revenue Next 3Y5.05%
Revenue Next 5Y3.75%

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.
BAC Yearly Revenue VS EstimatesBAC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
BAC Yearly EPS VS EstimatesBAC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4 5

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.99, the valuation of BAC can be described as reasonable.
BAC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. BAC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.60, the valuation of BAC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 68.59% of the companies listed in the same industry.
BAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.
Industry RankSector Rank
PE 10.99
Fwd PE 8.6
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

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
BAC Per share dataBAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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.
BAC's earnings are expected to grow with 12.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)3.14
EPS Next 2Y14.26%
EPS Next 3Y12.9%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.78%, BAC has a reasonable but not impressive dividend return.
The stock price of BAC dropped by -20.64% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.66, BAC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, BAC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.78%

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

BAC pays out 154.72% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP154.72%
EPS Next 2Y14.26%
EPS Next 3Y12.9%
BAC Yearly Income VS Free CF VS DividendBAC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B
BAC Dividend Payout.BAC Dividend Payout, showing the Payout Ratio.BAC Dividend Payout.PayoutRetained Earnings

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BANK OF AMERICA CORP

NYSE:BAC (4/21/2025, 5:05:00 PM)

After market: 36.92 0 (0%)

36.92

-0.49 (-1.31%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-15 2025-04-15/bmo
Earnings (Next)07-16 2025-07-16/bmo
Inst Owners65.89%
Inst Owner Change0.14%
Ins Owners0.12%
Ins Owner Change0.74%
Market Cap279.12B
Analysts81.43
Price Target51.82 (40.36%)
Short Float %1.14%
Short Ratio2.03
Dividend
Industry RankSector Rank
Dividend Yield 2.78%
Yearly Dividend1.23
Dividend Growth(5Y)13.83%
DP154.72%
Div Incr Years11
Div Non Decr Years15
Ex-Date03-07 2025-03-07 (0.26)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.94%
Min EPS beat(2)4.48%
Max EPS beat(2)5.4%
EPS beat(4)4
Avg EPS beat(4)5.41%
Min EPS beat(4)3.15%
Max EPS beat(4)8.61%
EPS beat(8)8
Avg EPS beat(8)6.22%
EPS beat(12)12
Avg EPS beat(12)6.04%
EPS beat(16)16
Avg EPS beat(16)8.13%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)0.23%
Revenue beat(4)3
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.19%
Max Revenue beat(4)1.01%
Revenue beat(8)5
Avg Revenue beat(8)-0.4%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)-0.06%
PT rev (1m)-1.11%
PT rev (3m)4.27%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)0.78%
Valuation
Industry RankSector Rank
PE 10.99
Fwd PE 8.6
P/S 2.74
P/FCF N/A
P/OCF N/A
P/B 0.94
P/tB 1.24
EV/EBITDA N/A
EPS(TTM)3.36
EY9.1%
EPS(NY)4.29
Fwd EY11.63%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)-1.16
OCFYN/A
SpS13.48
BVpS39.09
TBVpS29.7
PEG (NY)0.92
PEG (5Y)3.14
Profitability
Industry RankSector Rank
ROA 0.19%
ROE 2.08%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 6.03%
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
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 RankSector Rank
Debt/Equity 2.14
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-Score6
WACC11.88%
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 Y11.9%
EPS Next 2Y14.26%
EPS Next 3Y12.9%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%5.91%
Revenue Next Year5.96%
Revenue Next 2Y6.03%
Revenue Next 3Y5.05%
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-119.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-119.57%
OCF growth 3YN/A
OCF growth 5YN/A