BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAC - US0605051046 - Common Stock
55.28 USD
-0.07 (-0.13%)
55.26 USD
-0.02 (-0.04%)
We assign a fundamental rating of 3 out of 10 to BAC. BAC was compared to 388 industry peers in the Banks industry. BAC may be in some trouble as it scores bad on both profitability and health. BAC is not valued too expensively and it also shows a decent growth rate. Finally BAC also has an excellent dividend rating.
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.
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.
1.2 Ratios
BAC's Return On Assets of 0.83% is in line compared to the rest of the industry. BAC outperforms 44.85% of its industry peers.
BAC has a Return On Equity of 9.29%. This is comparable to the rest of the industry: BAC outperforms 54.64% 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
BAC's Profit Margin of 26.34% is fine compared to the rest of the industry. BAC outperforms 61.60% 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) | 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.
The number of shares outstanding for BAC has been reduced compared to 1 year ago.
BAC has less shares outstanding than it did 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.
With a Debt to FCF ratio value of 11.51, BAC is not doing good in the industry: 79.90% of the companies in the same industry are doing better.
BAC has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
BAC has a worse Debt to Equity ratio (2.33) than 89.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 11.51 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, which is quite good.
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 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
The Earnings Per Share is expected to grow by 13.96% 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 5.54% on average per year.
EPS Next Y16.91%
EPS Next 2Y15.64%
EPS Next 3Y15.45%
EPS Next 5Y13.96%
Revenue Next Year7.52%
Revenue Next 2Y6.87%
Revenue Next 3Y6.26%
Revenue Next 5Y5.54%
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
Based on the Price/Earnings ratio of 15.06, the valuation of BAC can be described as correct.
Based on the Price/Earnings ratio, BAC is valued a bit more expensive than 67.78% of the companies in the same industry.
BAC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
BAC is valuated correctly with a Price/Forward Earnings ratio of 12.56.
Based on the Price/Forward Earnings ratio, BAC is valued a bit more expensive than the industry average as 66.75% of the companies are valued more cheaply.
BAC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BAC is valued cheaper than 86.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.57 | ||
| 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 15.45% in the coming years.
PEG (NY)0.89
PEG (5Y)4.3
EPS Next 2Y15.64%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 6.30%, which is a nice return.
BAC's Dividend Yield is rather good when compared to the industry average which is at 2.74. BAC pays more dividend than 95.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
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
5.3 Sustainability
BAC pays out 33.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of BAC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.55%
EPS Next 2Y15.64%
EPS Next 3Y15.45%
55.28
-0.07 (-0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.82%
Inst Owner Change2.77%
Ins Owners0.11%
Ins Owner Change-0.35%
Market Cap403.68B
Revenue(TTM)107.26B
Net Income(TTM)28.25B
Analysts80.67
Price Target59.71 (8.01%)
Short Float %1.71%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
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)2.74%
PT rev (3m)12.63%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 12.56 | ||
| P/S | 3.76 | ||
| P/FCF | 6.57 | ||
| P/OCF | 6.57 | ||
| P/B | 1.33 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.67
EY6.64%
EPS(NY)4.4
Fwd EY7.96%
FCF(TTM)8.42
FCFY15.23%
OCF(TTM)8.42
OCFY15.23%
SpS14.69
BVpS41.65
TBVpS32.2
PEG (NY)0.89
PEG (5Y)4.3
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
WACC11.37%
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 Y16.91%
EPS Next 2Y15.64%
EPS Next 3Y15.45%
EPS Next 5Y13.96%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y4.57%
Revenue growth 5Y2.23%
Sales Q2Q%10.79%
Revenue Next Year7.52%
Revenue Next 2Y6.87%
Revenue Next 3Y6.26%
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 15.06 and the Price/Book (PB) ratio is 1.33.
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.