VERIZON COMMUNICATIONS INC (BAC.DE) Fundamental Analysis & Valuation

FRA:BAC • US92343V1044

43.645 EUR
-0.47 (-1.07%)
Last: Mar 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This BAC.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

BAC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 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 has a decent growth rate and is not valued too expensively. BAC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

1. BAC.DE Profitability Analysis

1.1 Basic Checks

  • In the past year BAC was profitable.
  • In the past year BAC had a positive cash flow from operations.
  • In the past 5 years BAC has always been profitable.
  • In the past 5 years BAC always reported a positive cash flow from operatings.
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 2025 0 20B -20B 40B

1.2 Ratios

  • BAC's Return On Assets of 4.25% is fine compared to the rest of the industry. BAC outperforms 70.00% of its industry peers.
  • BAC has a Return On Equity of 16.44%. This is in the better half of the industry: BAC outperforms 70.00% of its industry peers.
  • BAC has a Return On Invested Capital (6.85%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 8.35%.
Industry RankSector Rank
ROA 4.25%
ROE 16.44%
ROIC 6.85%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.32%
ROIC(5y)7.41%
BAC.DE Yearly ROA, ROE, ROICBAC.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • The Profit Margin of BAC (12.43%) is better than 76.67% of its industry peers.
  • BAC's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 21.76%, BAC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of BAC has declined.
  • BAC's Gross Margin of 58.92% is in line compared to the rest of the industry. BAC outperforms 53.33% 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 RankSector Rank
OM 21.76%
PM (TTM) 12.43%
GM 58.92%
OM growth 3Y-1.15%
OM growth 5Y-1.68%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.24%
GM growth 5Y-0.39%
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 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. BAC.DE Health Analysis

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.
  • BAC has about the same amout of shares outstanding than it did 1 year ago.
  • BAC has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, BAC has a worse debt to assets ratio.
BAC.DE Yearly Shares OutstandingBAC.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 100B 200B 300B 400B

2.2 Solvency

  • Based on the Altman-Z score of 1.33, we must say that BAC is in the distress zone and has some risk of bankruptcy.
  • BAC has a better Altman-Z score (1.33) than 63.33% of its industry peers.
  • The Debt to FCF ratio of BAC is 8.04, which is on the high side as it means it would take BAC, 8.04 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of BAC (8.04) is comparable to the rest of the industry.
  • BAC has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.34, BAC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Altman-Z 1.33
ROIC/WACC1.04
WACC6.58%
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 2025 0 50B 100B

2.3 Liquidity

  • A Current Ratio of 0.91 indicates that BAC may have some problems paying its short term obligations.
  • With a decent Current ratio value of 0.91, BAC is doing good in the industry, outperforming 73.33% of the companies in the same industry.
  • A Quick Ratio of 0.87 indicates that BAC may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.87, BAC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.87
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 2025 20B 40B 60B

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

4

3. BAC.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.61% over the past year.
  • Measured over the past years, BAC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.79% on average per year.
  • The Revenue has been growing slightly by 2.52% in the past year.
  • BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.50% yearly.
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%

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 7.48% on average per year.
  • BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue Next Year4.54%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%

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.
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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6

4. BAC.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.78 indicates a reasonable valuation of BAC.
  • Based on the Price/Earnings ratio, BAC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (26.29), we can say BAC is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.12 indicates a reasonable 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 83.33% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, BAC is valued rather cheaply.
Industry RankSector Rank
PE 10.78
Fwd PE 10.12
BAC.DE Price Earnings VS Forward Price EarningsBAC.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAC.
  • Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.87
EV/EBITDA 7.34
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%

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

7

5. BAC.DE Dividend Analysis

5.1 Amount

  • BAC has a Yearly Dividend Yield of 6.36%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.04, BAC pays a better dividend. On top of this BAC pays more dividend than 86.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, BAC pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.36%

5.2 History

  • The dividend of BAC has a limited annual growth rate of 1.96%.
Dividend Growth(5Y)1.96%
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 66.85% 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.
DP66.85%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
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 2025 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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BAC.DE Fundamentals: All Metrics, Ratios and Statistics

VERIZON COMMUNICATIONS INC

FRA:BAC (3/6/2026, 7:00:00 PM)

43.645

-0.47 (-1.07%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30
Earnings (Next)04-21
Inst Owners68.63%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap184.08B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts73.14
Price Target43.96 (0.72%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.36%
Yearly Dividend2.36
Dividend Growth(5Y)1.96%
DP66.85%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)-0.02%
Min EPS beat(4)-1.2%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-0.91%
EPS beat(12)5
Avg EPS beat(12)-0.91%
EPS beat(16)5
Avg EPS beat(16)-1.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.71%
Revenue beat(12)0
Avg Revenue beat(12)-2.96%
Revenue beat(16)0
Avg Revenue beat(16)-2.82%
PT rev (1m)4.63%
PT rev (3m)6.62%
EPS NQ rev (1m)2.45%
EPS NQ rev (3m)2%
EPS NY rev (1m)1.87%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)2.66%
Valuation
Industry RankSector Rank
PE 10.78
Fwd PE 10.12
P/S 1.55
P/FCF 10.87
P/OCF 5.76
P/B 2.05
P/tB N/A
EV/EBITDA 7.34
EPS(TTM)4.05
EY9.28%
EPS(NY)4.31
Fwd EY9.88%
FCF(TTM)4.02
FCFY9.2%
OCF(TTM)7.58
OCFY17.37%
SpS28.21
BVpS21.32
TBVpS-17.53
PEG (NY)1.7
PEG (5Y)N/A
Graham Number44.08
Profitability
Industry RankSector Rank
ROA 4.25%
ROE 16.44%
ROCE 8.8%
ROIC 6.85%
ROICexc 7.25%
ROICexgc 17.68%
OM 21.76%
PM (TTM) 12.43%
GM 58.92%
FCFM 14.24%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.32%
ROIC(5y)7.41%
ROICexc(3y)7.5%
ROICexc(5y)7.55%
ROICexgc(3y)18.41%
ROICexgc(5y)18.44%
ROCE(3y)9.4%
ROCE(5y)9.52%
ROICexgc growth 3Y0.32%
ROICexgc growth 5Y-1.42%
ROICexc growth 3Y-0.39%
ROICexc growth 5Y-4.81%
OM growth 3Y-1.15%
OM growth 5Y-1.68%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.24%
GM growth 5Y-0.39%
F-Score4
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Debt/EBITDA 2.88
Cap/Depr 95.16%
Cap/Sales 12.64%
Interest Coverage 250
Cash Conversion 76.7%
Profit Quality 114.57%
Current Ratio 0.91
Quick Ratio 0.87
Altman-Z 1.33
F-Score4
WACC6.58%
ROIC/WACC1.04
Cap/Depr(3y)111.69%
Cap/Depr(5y)182.07%
Cap/Sales(3y)14.77%
Cap/Sales(5y)22.93%
Profit Quality(3y)111.28%
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 Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.54%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%
EBIT growth 1Y-5.19%
EBIT growth 3Y-0.82%
EBIT growth 5Y-0.21%
EBIT Next Year69.4%
EBIT Next 3Y21.36%
EBIT Next 5Y12.97%
FCF growth 1Y3.98%
FCF growth 3Y23.68%
FCF growth 5Y-1.71%
OCF growth 1Y0.61%
OCF growth 3Y0%
OCF growth 5Y-2.32%

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 4 / 10 to BAC.DE.


What is the valuation status for BAC stock?

ChartMill assigns a valuation rating of 6 / 10 to VERIZON COMMUNICATIONS INC (BAC.DE). This can be considered as Fairly Valued.


What is the profitability of BAC stock?

VERIZON COMMUNICATIONS INC (BAC.DE) has a profitability rating of 5 / 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 6.36% in the next year.


Can you provide the dividend sustainability for BAC stock?

The dividend rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 7 / 10 and the dividend payout ratio is 66.85%.