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BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis

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

47.17  +0.05 (+0.11%)

Fundamental Rating

3

Overall BAC gets a fundamental rating of 3 out of 10. We evaluated BAC against 395 industry peers in the Banks industry. BAC has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, BAC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

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.
Each year in the past 5 years BAC has been profitable.
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's Return On Assets of 0.79% is in line compared to the rest of the industry. BAC outperforms 45.32% of its industry peers.
With a Return On Equity value of 8.91%, BAC perfoms like the industry average, outperforming 54.68% of the companies in the same industry.
Industry RankSector 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
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 25.48%, BAC is in the better half of the industry, outperforming 62.03% of the companies in the same industry.
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 RankSector 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
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.
BAC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BAC is higher compared to a year ago.
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

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.
Looking at the Debt to FCF ratio, with a value of 158.30, BAC is doing worse than 88.86% of the companies in the same industry.
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: 91.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.38
Debt/FCF 158.3
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 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

BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.51%.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
The Revenue has been growing slightly by 5.39% in the past year.
The Revenue has been growing slightly by 2.23% on average over the past years.
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

BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y12.19%
EPS Next 2Y14.6%
EPS Next 3Y13.82%
EPS Next 5Y6.91%
Revenue Next Year6.3%
Revenue Next 2Y5.9%
Revenue Next 3Y5.24%
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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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.04, BAC is valued correctly.
62.53% of the companies in the same industry are cheaper than BAC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (26.98), we can say BAC is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.92 indicates a reasonable valuation of BAC.
Based on the Price/Forward Earnings ratio, BAC is valued a bit more expensive than the industry average as 60.51% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.49. BAC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.04
Fwd PE 10.92
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

Based on the Price/Free Cash Flow ratio, BAC is valued expensively inside the industry as 85.57% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF 78.08
EV/EBITDA N/A
BAC Per share dataBAC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The 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 13.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)4.01
EPS Next 2Y14.6%
EPS Next 3Y13.82%

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5

5. Dividend

5.1 Amount

BAC has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
BAC's Dividend Yield is slightly below the industry average, which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.42, BAC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.19%

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
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

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 2Y14.6%
EPS Next 3Y13.82%
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 (6/30/2025, 2:57:09 PM)

47.17

+0.05 (+0.11%)

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 Owners66.49%
Inst Owner Change-0.62%
Ins Owners0.12%
Ins Owner Change0.74%
Market Cap355.28B
Analysts80.69
Price Target49.56 (5.07%)
Short Float %1.28%
Short Ratio1.84
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
Yearly Dividend1.23
Dividend Growth(5Y)13.83%
DP36.19%
Div Incr Years11
Div Non Decr Years15
Ex-Date06-06 2025-06-06 (0.26)
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)2.33%
PT rev (3m)-5.78%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-4.06%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.43%
Valuation
Industry RankSector Rank
PE 14.04
Fwd PE 10.92
P/S 3.43
P/FCF 78.08
P/OCF 78.08
P/B 1.2
P/tB 1.58
EV/EBITDA N/A
EPS(TTM)3.36
EY7.12%
EPS(NY)4.32
Fwd EY9.16%
FCF(TTM)0.6
FCFY1.28%
OCF(TTM)0.6
OCFY1.28%
SpS13.73
BVpS39.24
TBVpS29.83
PEG (NY)1.15
PEG (5Y)4.01
Profitability
Industry RankSector 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 RankSector 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
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)1.51%
EPS 3Y-0.4%
EPS 5Y3.5%
EPS Q2Q%8.43%
EPS Next Y12.19%
EPS Next 2Y14.6%
EPS Next 3Y13.82%
EPS Next 5Y6.91%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%5.91%
Revenue Next Year6.3%
Revenue Next 2Y5.9%
Revenue Next 3Y5.24%
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