BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis
USA - NYSE:BAC - US0605051046 - Common Stock
53.02 USD
+0.45 (+0.86%)
53.04 USD
+0.02 (+0.04%)
Overall BAC gets a fundamental rating of 3 out of 10. We evaluated BAC against 390 industry peers in the Banks industry. BAC has a bad profitability rating. Also its financial health evaluation is rather negative. BAC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BAC was profitable.
BAC had a negative operating cash flow in the past year.
Each year in the past 5 years BAC has 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 (0.77%) which is in line with its industry peers.
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
BAC's Profit Margin of 25.44% is fine compared to the rest of the industry. BAC outperforms 61.79% of its industry peers.
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.
Compared to 1 year ago, BAC has less shares outstanding
Compared to 5 years ago, BAC has less shares outstanding
The debt/assets ratio for BAC is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 2.50 is on the high side and indicates that BAC has dependencies on debt financing.
BAC's Debt to Equity ratio of 2.50 is on the low side compared to the rest of the industry. BAC is outperformed by 90.51% of its industry peers.
| 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
The Earnings Per Share has grown by an nice 15.77% over the past year.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
Looking at the last year, BAC shows a quite strong growth in Revenue. The Revenue has grown by 8.90% in the last year.
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.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
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
Based on the Price/Earnings ratio of 14.45, the valuation of BAC can be described as correct.
Based on the Price/Earnings ratio, BAC is valued a bit more expensive than the industry average as 65.64% of the companies are valued more cheaply.
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 12.10 indicates a correct valuation of BAC.
BAC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BAC is more expensive than 65.90% of the companies 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 | 14.45 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 15.25% in the coming years.
PEG (NY)0.88
PEG (5Y)4.13
EPS Next 2Y15.41%
EPS Next 3Y15.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, BAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.50, BAC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, BAC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.83%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
35.80% of the earnings are spent on dividend by BAC. This is a low number and sustainable payout ratio.
The dividend of BAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.8%
EPS Next 2Y15.41%
EPS Next 3Y15.25%
53.02
+0.45 (+0.86%)
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 Cap388.61B
Revenue(TTM)107.26B
Net Income(TTM)26.59B
Analysts80
Price Target54.16 (2.15%)
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 | 14.45 | ||
| Fwd PE | 12.1 | ||
| P/S | 3.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.3 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.67
EY6.92%
EPS(NY)4.38
Fwd EY8.26%
FCF(TTM)-3.09
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS14.26
BVpS40.88
TBVpS31.2
PEG (NY)0.88
PEG (5Y)4.13
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 14.45 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.