VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
FRA:BAC • US92343V1044
41.46 EUR
-0.76 (-1.8%)
Last: Feb 13, 2026, 07:00 PM
Overall BAC gets a fundamental rating of 4 out of 10. We evaluated BAC against 33 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 not valued too expensively and it also shows a decent growth rate. BAC also has an excellent dividend rating.
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.
- 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
- BAC's Return On Assets of 4.25% is fine compared to the rest of the industry. BAC outperforms 60.61% of its industry peers.
- The Return On Equity of BAC (16.44%) is better than 63.64% of its industry peers.
- BAC has a Return On Invested Capital (6.85%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 8.59%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 12.43%, BAC is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
- In the last couple of years the Profit Margin of BAC has declined.
- The Operating Margin of BAC (21.76%) is better than 78.79% of its industry peers.
- BAC's Operating Margin has declined in the last couple of years.
- BAC has a Gross Margin (58.92%) which is in line with its industry peers.
- BAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- 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.
- The debt/assets ratio for BAC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.32, we must say that BAC is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of BAC (1.32) is better than 60.61% of its industry peers.
- BAC has a debt to FCF ratio of 8.04. This is a slightly negative value and a sign of low solvency as BAC would need 8.04 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 8.04, BAC perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
- A Debt/Equity ratio of 1.34 is on the high side and indicates that BAC has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.34, BAC is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.06
WACC6.46%
2.3 Liquidity
- BAC has a Current Ratio of 0.91. 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 Current ratio, with a value of 0.91, BAC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- BAC has a Quick Ratio of 0.91. This is a bad value and indicates that BAC is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 0.87, BAC is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
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.
- The Revenue has been growing slightly by 2.52% in the past year.
- Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 1.50% on average per year.
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
- BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.55% yearly.
- BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.53% yearly.
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y3.55%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.44 indicates a reasonable valuation of BAC.
- Based on the Price/Earnings ratio, BAC is valued cheaper than 87.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.97, BAC is valued rather cheaply.
- BAC is valuated reasonably with a Price/Forward Earnings ratio of 9.83.
- 81.82% of the companies in the same industry are more expensive than BAC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAC is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.55 | ||
| EV/EBITDA | 7.24 |
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)1.64
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- BAC has a Yearly Dividend Yield of 6.36%, which is a nice return.
- BAC's Dividend Yield is rather good when compared to the industry average which is at 2.98. BAC pays more dividend than 87.88% of the companies in the same industry.
- BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector 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
5.3 Sustainability
- BAC pays out 66.85% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of BAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.85%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
FRA:BAC (2/13/2026, 7:00:00 PM)
41.46
-0.76 (-1.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30 2026-01-30/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap174.84B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.57
Price Target42.33 (2.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend2.3
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)2.2%
PT rev (3m)0.31%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)1.18%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 9.83 | ||
| P/S | 1.5 | ||
| P/FCF | 10.55 | ||
| P/OCF | 5.59 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.24 |
EPS(TTM)3.97
EY9.58%
EPS(NY)4.22
Fwd EY10.18%
FCF(TTM)3.93
FCFY9.48%
OCF(TTM)7.42
OCFY17.89%
SpS27.6
BVpS20.86
TBVpS-17.15
PEG (NY)1.64
PEG (5Y)N/A
Graham Number43.17
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.32 |
F-Score4
WACC6.46%
ROIC/WACC1.06
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 5Y3.55%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
Revenue Next 5Y1.53%
EBIT growth 1Y-5.19%
EBIT growth 3Y-0.82%
EBIT growth 5Y-0.21%
EBIT Next Year64.6%
EBIT Next 3Y19.95%
EBIT Next 5Y12.49%
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%.