VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:BAC • US92343V1044

39.09 EUR
-0.67 (-1.7%)
Last: Feb 6, 2026, 07:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BAC. BAC was compared to 31 industry peers in the Diversified Telecommunication Services industry. While BAC is still in line with the averages on profitability rating, there are concerns on its financial health. BAC is valued quite cheap, but it does not seem to be growing. BAC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • BAC had positive earnings in the past year.
  • BAC had a positive operating cash flow in the past year.
  • Of the past 5 years BAC 4 years were profitable.
  • BAC had a positive operating cash flow in 4 of the past 5 years.
BAC.DE Yearly Net Income VS EBIT VS OCF VS FCFBAC.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B

1.2 Ratios

  • BAC has a Return On Assets of 5.11%. This is in the better half of the industry: BAC outperforms 70.97% of its industry peers.
  • Looking at the Return On Equity, with a value of 18.88%, BAC is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
  • The Return On Invested Capital of BAC (7.38%) is better than 64.52% 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 8.68%.
  • The last Return On Invested Capital (7.38%) for BAC is above the 3 year average (7.15%), which is a sign of increasing profitability.
Industry RankSector 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%
BAC.DE Yearly ROA, ROE, ROICBAC.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 14.43%, BAC belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
  • BAC's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 23.63%, BAC belongs to the best of the industry, outperforming 87.10% 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 51.61% of its industry peers.
  • BAC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
BAC.DE Yearly Profit, Operating, Gross MarginsBAC.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BAC is still creating some value.
  • There is no outstanding debt for BAC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
BAC.DE Yearly Shares OutstandingBAC.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
BAC.DE Yearly Total Debt VS Total AssetsBAC.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.2 Solvency

  • Based on the Altman-Z score of 1.34, we must say that BAC is in the distress zone and has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.34, BAC is doing good in the industry, outperforming 67.74% of the companies in the same industry.
  • The Debt to FCF ratio of BAC is 7.11, which is on the high side as it means it would take BAC, 7.11 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 7.11, BAC is doing good in the industry, outperforming 61.29% of the companies in the same industry.
  • A Debt/Equity ratio of 1.21 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 1.21, BAC is in line with its industry, outperforming 48.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 7.11
Altman-Z 1.34
ROIC/WACC1.23
WACC5.99%
BAC.DE Yearly LT Debt VS Equity VS FCFBAC.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B

2.3 Liquidity

  • BAC has a Current 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.
  • BAC has a Current ratio (0.74) which is comparable to the rest of the industry.
  • 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.
  • Looking at the Quick ratio, with a value of 0.69, BAC is doing worse than 61.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.74
Quick Ratio 0.69
BAC.DE Yearly Current Assets VS Current LiabilitesBAC.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. Growth

3.1 Past

  • BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.61%.
  • The Earnings Per Share has been decreasing by -0.79% on average over the past years.
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.96%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.55% on average over the next years.
  • The Revenue is expected to grow by 1.53% on average over the next years.
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
BAC.DE Yearly Revenue VS EstimatesBAC.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B
BAC.DE Yearly EPS VS EstimatesBAC.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.80 indicates a reasonable valuation of BAC.
  • BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 87.10% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.92. BAC is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 9.38, the valuation of BAC can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, BAC is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. BAC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.8
Fwd PE 9.38
BAC.DE Price Earnings VS Forward Price EarningsBAC.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • BAC's Enterprise Value to EBITDA is on the same level as the industry average.
  • BAC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAC is cheaper than 80.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.42
EV/EBITDA 6.63
BAC.DE Per share dataBAC.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • BAC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y4.48%
EPS Next 3Y4.49%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. Dividend

5.1 Amount

  • BAC has a Yearly Dividend Yield of 6.93%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.09, BAC pays a better dividend. On top of this BAC pays more dividend than 93.55% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, BAC pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.93%

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
BAC.DE Yearly Dividends per shareBAC.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • BAC pays out 57.56% of its income as dividend. 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 2Y4.48%
EPS Next 3Y4.49%
BAC.DE Yearly Income VS Free CF VS DividendBAC.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B -20B 30B
BAC.DE Dividend Payout.BAC.DE Dividend Payout, showing the Payout Ratio.BAC.DE Dividend Payout.PayoutRetained Earnings

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VERIZON COMMUNICATIONS INC

FRA:BAC (2/6/2026, 7:00:00 PM)

39.09

-0.67 (-1.7%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30
Earnings (Next)04-21
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap164.82B
Revenue(TTM)N/A
Net Income(TTM)19.84B
Analysts72.73
Price Target42.02 (7.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.93%
Yearly Dividend2.24
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)1.44%
PT rev (3m)-0.43%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 9.8
Fwd PE 9.38
P/S 1.41
P/FCF 9.42
P/OCF 5.06
P/B 1.85
P/tB N/A
EV/EBITDA 6.63
EPS(TTM)3.99
EY10.21%
EPS(NY)4.17
Fwd EY10.66%
FCF(TTM)4.15
FCFY10.62%
OCF(TTM)7.73
OCFY19.78%
SpS27.64
BVpS21.12
TBVpS-17.14
PEG (NY)2.23
PEG (5Y)N/A
Graham Number43.54
Profitability
Industry RankSector 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 RankSector 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 1.34
F-Score7
WACC5.99%
ROIC/WACC1.23
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)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.96%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.36%
EBIT Next 3Y21.63%
EBIT Next 5Y13.55%
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 for BAC 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 6 / 10.


What is the expected EPS growth for VERIZON COMMUNICATIONS INC (BAC.DE) stock?

The Earnings per Share (EPS) of VERIZON COMMUNICATIONS INC (BAC.DE) is expected to grow by 4.4% in the next year.


Can you provide the dividend sustainability for BAC stock?

The dividend rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 8 / 10 and the dividend payout ratio is 57.56%.