VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - FRA:BAC - US92343V1044 - Common Stock
37.49 EUR
+0.16 (+0.42%)
Overall BAC gets a fundamental rating of 5 out of 10. We evaluated BAC against 30 industry peers in the Diversified Telecommunication Services industry. BAC has an excellent profitability rating, but there are concerns on its financial 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
In the past year BAC was profitable.
In the past year BAC had a positive cash flow from operations.
BAC had positive earnings in each of the past 5 years.
In the past 5 years BAC always reported a positive cash flow from operatings.
1.2 Ratios
BAC has a better Return On Assets (4.75%) than 80.00% of its industry peers.
BAC has a better Return On Equity (17.65%) than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.50%, BAC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
BAC had an Average Return On Invested Capital over the past 3 years of 7.15%. This is in line with the industry average of 7.31%.
The last Return On Invested Capital (7.50%) for BAC is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 17.65% | ||
| ROIC | 7.5% |
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
BAC has a Profit Margin of 13.28%. This is amongst the best in the industry. BAC outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of BAC has declined.
With an excellent Operating Margin value of 23.62%, BAC belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.48%, BAC is in line with its industry, outperforming 56.67% of the companies in the same industry.
BAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 13.28% | ||
| GM | 59.48% |
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.
Compared to 1 year ago, BAC has about the same amount of shares outstanding.
BAC has more shares outstanding than it did 5 years ago.
BAC has a better debt/assets ratio than last year.
2.2 Solvency
BAC has an Altman-Z score of 1.30. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
BAC has a Altman-Z score (1.30) which is comparable to the rest of the industry.
BAC has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as BAC would need 7.45 years to pay back of all of its debts.
BAC has a Debt to FCF ratio of 7.45. This is comparable to the rest of the industry: BAC outperforms 56.67% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that BAC has dependencies on debt financing.
BAC's Debt to Equity ratio of 1.20 is in line compared to the rest of the industry. BAC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.28
WACC5.85%
2.3 Liquidity
BAC has a Current Ratio of 0.64. 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's Current ratio of 0.64 is on the low side compared to the rest of the industry. BAC is outperformed by 73.33% of its industry peers.
BAC has a Quick Ratio of 0.64. 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 0.60, BAC is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.17%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
The Revenue has been growing slightly by 2.05% in the past year.
The Revenue has been growing slightly by 0.44% on average over the past years.
EPS 1Y (TTM)2.17%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%6.09%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
3.2 Future
BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.17% yearly.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.95% on average per year.
EPS Next Y5.35%
EPS Next 2Y4.53%
EPS Next 3Y4.29%
EPS Next 5Y5.17%
Revenue Next Year2.78%
Revenue Next 2Y2.44%
Revenue Next 3Y2.05%
Revenue Next 5Y1.95%
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 9.35, the valuation of BAC can be described as reasonable.
93.33% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
BAC is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.76, which indicates a very decent valuation of BAC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 86.67% of the companies listed in the same industry.
BAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
BAC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
The 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)1.75
PEG (5Y)N/A
EPS Next 2Y4.53%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 6.25%, which is a nice return.
Compared to an average industry Dividend Yield of 4.20, BAC pays a better dividend. On top of this BAC pays more dividend than 93.33% of the companies listed in the same industry.
BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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
BAC pays out 62.46% of its income as dividend. This is not a sustainable payout ratio.
BAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.46%
EPS Next 2Y4.53%
EPS Next 3Y4.29%
FRA:BAC (9/12/2025, 7:00:00 PM)
37.49
+0.16 (+0.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.61%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap158.07B
Analysts72.94
Price Target41.86 (11.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend2.28
Dividend Growth(5Y)1.99%
DP62.46%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.34%
Min EPS beat(2)0.01%
Max EPS beat(2)0.67%
EPS beat(4)2
Avg EPS beat(4)-0.89%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-1.05%
EPS beat(12)4
Avg EPS beat(12)-1.09%
EPS beat(16)5
Avg EPS beat(16)-1.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)0
Avg Revenue beat(12)-2.77%
Revenue beat(16)0
Avg Revenue beat(16)-2.84%
PT rev (1m)-1.54%
PT rev (3m)-1.97%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.76 | ||
| P/S | 1.35 | ||
| P/FCF | 9.45 | ||
| P/OCF | 4.99 | ||
| P/B | 1.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)4.01
EY10.7%
EPS(NY)4.28
Fwd EY11.42%
FCF(TTM)3.97
FCFY10.59%
OCF(TTM)7.51
OCFY20.03%
SpS27.73
BVpS20.86
TBVpS-17.66
PEG (NY)1.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 17.65% | ||
| ROCE | 10.04% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 18.79% | ||
| OM | 23.62% | ||
| PM (TTM) | 13.28% | ||
| GM | 59.48% | ||
| FCFM | 14.31% |
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%
ROICexcg growth 3Y0.43%
ROICexcg 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 96.24% | ||
| Cap/Sales | 12.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.41% | ||
| Profit Quality | 107.77% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.3 |
F-Score7
WACC5.85%
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)2.17%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%6.09%
EPS Next Y5.35%
EPS Next 2Y4.53%
EPS Next 3Y4.29%
EPS Next 5Y5.17%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
Revenue Next Year2.78%
Revenue Next 2Y2.44%
Revenue Next 3Y2.05%
Revenue Next 5Y1.95%
EBIT growth 1Y5.16%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.32%
EBIT Next 3Y21.57%
EBIT Next 5Y13.82%
FCF growth 1Y58.54%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-1.06%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%