VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock
34.51 EUR
+0.09 (+0.28%)
Taking everything into account, BAC scores 5 out of 10 in our fundamental rating. BAC was compared to 33 industry peers in the Diversified Telecommunication Services industry. While BAC belongs to the best of the industry regarding profitability, there are concerns on its financial health. BAC is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years BAC has always been profitable.
BAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BAC (5.11%) is better than 72.73% of its industry peers.
BAC has a better Return On Equity (18.88%) than 66.67% of its industry peers.
BAC has a better Return On Invested Capital (7.38%) than 69.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAC is in line with the industry average of 7.68%.
The 3 year average ROIC (7.15%) for BAC is below the current ROIC(7.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROIC | 7.38% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
1.3 Margins
With an excellent Profit Margin value of 14.43%, BAC belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Profit Margin of BAC has declined.
Looking at the Operating Margin, with a value of 23.63%, BAC belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
BAC's Operating Margin has been stable in the last couple of years.
BAC's Gross Margin of 59.41% is in line compared to the rest of the industry. BAC outperforms 48.48% of its industry peers.
BAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% |
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BAC is creating some value.
The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
BAC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BAC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that BAC is in the distress zone and has some risk of bankruptcy.
BAC's Altman-Z score of 1.29 is fine compared to the rest of the industry. BAC outperforms 72.73% of its industry peers.
BAC has a debt to FCF ratio of 7.11. This is a slightly negative value and a sign of low solvency as BAC would need 7.11 years to pay back of all of its debts.
BAC has a Debt to FCF ratio of 7.11. This is comparable to the rest of the industry: BAC outperforms 57.58% of its industry peers.
BAC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
BAC's Debt to Equity ratio of 1.21 is in line compared to the rest of the industry. BAC outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.28
WACC5.76%
2.3 Liquidity
A Current Ratio of 0.74 indicates that BAC may have some problems paying its short term obligations.
BAC's Current ratio of 0.74 is in line compared to the rest of the industry. BAC outperforms 57.58% of its industry peers.
BAC has a Quick Ratio of 0.74. This is a bad value and indicates that BAC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BAC (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.28%.
Measured over the past years, BAC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.93% on average per year.
The Revenue has been growing slightly by 2.42% in the past year.
The Revenue has been growing slightly by 0.44% on average over the past years.
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
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 4.16% on average per year.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.61%
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
Based on the Price/Earnings ratio of 8.61, the valuation of BAC can be described as reasonable.
BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (26.77), we can say BAC is valued rather cheaply.
BAC is valuated reasonably with a Price/Forward Earnings ratio of 8.20.
Based on the Price/Forward Earnings ratio, BAC is valued a bit cheaper than 78.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAC is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAC is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BAC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 6.85%, which is a nice return.
BAC's Dividend Yield is rather good when compared to the industry average which is at 3.32. BAC pays more dividend than 90.91% 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 | 6.85% |
5.2 History
The dividend of BAC has a limited annual growth rate of 1.99%.
Dividend Growth(5Y)1.99%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
57.56% of the earnings are spent on dividend by BAC. This is a bit on the high side, but may be sustainable.
The dividend of BAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.56%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
FRA:BAC (12/30/2025, 7:00:00 PM)
34.51
+0.09 (+0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners68.86%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap145.51B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target41.42 (20.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
Yearly Dividend2.27
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)2
Avg EPS beat(8)-1.26%
EPS beat(12)4
Avg EPS beat(12)-1.17%
EPS beat(16)4
Avg EPS beat(16)-1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)0.45%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.2 | ||
| P/S | 1.24 | ||
| P/FCF | 8.28 | ||
| P/OCF | 4.45 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.01
EY11.62%
EPS(NY)4.21
Fwd EY12.2%
FCF(TTM)4.17
FCFY12.07%
OCF(TTM)7.76
OCFY22.48%
SpS27.74
BVpS21.19
TBVpS-17.2
PEG (NY)1.65
PEG (5Y)N/A
Graham Number43.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROCE | 9.88% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 18.55% | ||
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% | ||
| FCFM | 15.02% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
ROICexc(3y)7.22%
ROICexc(5y)7.63%
ROICexgc(3y)17.6%
ROICexgc(5y)17.93%
ROCE(3y)9.58%
ROCE(5y)9.96%
ROICexgc growth 3Y0.43%
ROICexgc growth 5Y-0.86%
ROICexc growth 3Y-0.4%
ROICexc growth 5Y-4.26%
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 97.11% | ||
| Cap/Sales | 12.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.29 |
F-Score7
WACC5.76%
ROIC/WACC1.28
Cap/Depr(3y)132.1%
Cap/Depr(5y)187.34%
Cap/Sales(3y)17.07%
Cap/Sales(5y)23.57%
Profit Quality(3y)89.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y4.16%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.43%
EBIT Next 3Y21.43%
EBIT Next 5Y13.42%
FCF growth 1Y50.97%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y1.89%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%
VERIZON COMMUNICATIONS INC / BAC.DE FAQ
What is the ChartMill fundamental rating of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BAC.DE.
What is the valuation status of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to VERIZON COMMUNICATIONS INC (BAC.DE). This can be considered as Undervalued.
What is the profitability of BAC stock?
VERIZON COMMUNICATIONS INC (BAC.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (BAC.DE) is 8.61 and the Price/Book (PB) ratio is 1.63.
What is the financial health of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 3 / 10.