VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock
34.045 EUR
+0.04 (+0.1%)
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. BAC scores excellent on profitability, but there are concerns on its financial health. BAC may be a bit undervalued, certainly considering the very reasonable score on growth BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BAC was profitable.
BAC had a positive operating cash flow in the past year.
BAC had positive earnings in each of the past 5 years.
BAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAC has a better Return On Assets (5.11%) than 80.65% of its industry peers.
BAC has a Return On Equity of 18.88%. This is in the better half of the industry: BAC outperforms 74.19% of its industry peers.
The Return On Invested Capital of BAC (7.38%) is better than 74.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 7.74%.
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
Looking at the Profit Margin, with a value of 14.43%, BAC belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
In the last couple of years the Profit Margin of BAC has declined.
BAC's Operating Margin of 23.63% is amongst the best of the industry. BAC outperforms 87.10% of its industry peers.
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.
In the last couple of years the Gross Margin of BAC has remained more or less at the same level.
| 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
BAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BAC has more shares outstanding
The debt/assets ratio for BAC has been reduced compared to a year ago.
2.2 Solvency
BAC has an Altman-Z score of 1.28. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.28, BAC is doing good in the industry, outperforming 74.19% of the companies in the same industry.
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.
The Debt to FCF ratio of BAC (7.11) is better than 64.52% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAC has dependencies on debt financing.
BAC has a Debt to Equity ratio (1.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.28
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.74 indicates that BAC may have some problems paying its short term obligations.
With a Current ratio value of 0.74, BAC perfoms like the industry average, outperforming 54.84% of the companies in the same 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.
BAC has a Quick ratio (0.69) which 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%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
Looking at the last year, BAC shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
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
The Earnings Per Share is expected to grow by 4.16% on average over the next years.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
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 8.51, the valuation of BAC can be described as reasonable.
Based on the Price/Earnings ratio, BAC is valued cheaper than 93.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (26.59), we can say BAC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.07 indicates a reasonable valuation of BAC.
83.87% of the companies in the same industry are more expensive than BAC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.03. BAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAC is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
80.65% of the companies in the same industry are more expensive than BAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y4.1%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, BAC is a good candidate for dividend investing.
BAC's Dividend Yield is rather good when compared to the industry average which is at 3.36. BAC pays more dividend than 87.10% of the companies in the same industry.
BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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 2Y4.1%
EPS Next 3Y3.99%
FRA:BAC (12/23/2025, 7:00:00 PM)
34.045
+0.04 (+0.1%)
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 Cap143.55B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend2.28
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)-3.37%
PT rev (3m)-1.58%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.07 | ||
| P/S | 1.23 | ||
| P/FCF | 8.19 | ||
| P/OCF | 4.4 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.07 |
EPS(TTM)4
EY11.75%
EPS(NY)4.22
Fwd EY12.39%
FCF(TTM)4.15
FCFY12.2%
OCF(TTM)7.74
OCFY22.73%
SpS27.66
BVpS21.14
TBVpS-17.15
PEG (NY)1.59
PEG (5Y)N/A
Graham Number43.61
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 | 1.28 |
F-Score7
WACC5.75%
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 Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
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 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.1%
EBIT Next 3Y21.48%
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 8.51 and the Price/Book (PB) ratio is 1.61.
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.