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

FRA:BAC • US92343V1044

Current stock price

43.64 EUR
+0.2 (+0.46%)
Last:

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

7

1. BAC.DE Profitability Analysis

1.1 Basic Checks

  • BAC had positive earnings in the past year.
  • In the past year BAC had a positive cash flow from operations.
  • Each year in the past 5 years BAC has been profitable.
  • Each year in the past 5 years BAC had a positive operating cash flow.
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

  • With a decent Return On Assets value of 4.25%, BAC is doing good in the industry, outperforming 74.19% of the companies in the same industry.
  • BAC has a better Return On Equity (16.44%) than 80.65% of its industry peers.
  • BAC has a better Return On Invested Capital (7.38%) than 80.65% 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 7.19%.
Industry RankSector Rank
ROA 4.25%
ROE 16.44%
ROIC 7.38%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
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

  • With a decent Profit Margin value of 12.43%, BAC is doing good in the industry, outperforming 74.19% 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 23.45% is amongst the best of the industry. BAC outperforms 80.65% of its industry peers.
  • In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
  • BAC has a Gross Margin (59.07%) which is in line with its industry peers.
  • BAC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 23.45%
PM (TTM) 12.43%
GM 59.07%
OM growth 3Y1.41%
OM growth 5Y-0.17%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.32%
GM growth 5Y-0.34%
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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3

2. BAC.DE Health Analysis

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.
  • 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.
  • The debt/assets ratio for BAC is higher compared to a year ago.
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

  • BAC has an Altman-Z score of 1.34. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of BAC (1.34) is better than 70.97% 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.
  • BAC has a Debt to FCF ratio of 8.04. This is in the better half of the industry: BAC outperforms 61.29% of its industry peers.
  • BAC has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
  • BAC has a worse Debt to Equity ratio (1.34) than 70.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Altman-Z 1.34
ROIC/WACC1.17
WACC6.29%
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

  • 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.
  • BAC has a Current ratio of 0.91. This is in the better half of the industry: BAC outperforms 77.42% of its industry peers.
  • A Quick Ratio of 0.87 indicates that BAC may have some problems paying its short term obligations.
  • BAC's Quick ratio of 0.87 is fine compared to the rest of the industry. BAC outperforms 74.19% of its industry peers.
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

  • BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.61%.
  • BAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.79% yearly.
  • The Revenue has been growing slightly by 2.52% in the past year.
  • The Revenue has been growing slightly by 1.50% 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)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.
  • Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.91% on average per year.
EPS Next Y7.63%
EPS Next 2Y7.25%
EPS Next 3Y8.19%
EPS Next 5Y7.48%
Revenue Next Year4.56%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue 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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6

4. BAC.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 10.75, the valuation of BAC can be described as very reasonable.
  • 83.87% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.54. BAC is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 9.98, the valuation of BAC can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 83.87% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.70. BAC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.75
Fwd PE 9.98
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

  • BAC's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 64.52% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.85
EV/EBITDA 6.93
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

  • BAC's 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)1.41
PEG (5Y)N/A
EPS Next 2Y7.25%
EPS Next 3Y8.19%

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7

5. BAC.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.36%, BAC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.09, BAC pays a better dividend. On top of this BAC pays more dividend than 83.87% 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 1.89.
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 2Y7.25%
EPS Next 3Y8.19%
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 (3/24/2026, 1:42:46 PM)

43.64

+0.2 (+0.46%)

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 Cap184.06B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts73.14
Price Target43.96 (0.73%)
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)3.86%
PT rev (3m)6.71%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)1.19%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.78%
Valuation
Industry RankSector Rank
PE 10.75
Fwd PE 9.98
P/S 1.54
P/FCF 10.85
P/OCF 5.75
P/B 2.04
P/tB N/A
EV/EBITDA 6.93
EPS(TTM)4.06
EY9.3%
EPS(NY)4.37
Fwd EY10.02%
FCF(TTM)4.02
FCFY9.22%
OCF(TTM)7.59
OCFY17.4%
SpS28.26
BVpS21.36
TBVpS-17.56
PEG (NY)1.41
PEG (5Y)N/A
Graham Number44.17
Profitability
Industry RankSector Rank
ROA 4.25%
ROE 16.44%
ROCE 9.48%
ROIC 7.38%
ROICexc 7.82%
ROICexgc 19.05%
OM 23.45%
PM (TTM) 12.43%
GM 59.07%
FCFM 14.24%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
ROICexc(3y)7.69%
ROICexc(5y)7.67%
ROICexgc(3y)18.88%
ROICexgc(5y)18.72%
ROCE(3y)9.63%
ROCE(5y)9.66%
ROICexgc growth 3Y2.91%
ROICexgc growth 5Y0.1%
ROICexc growth 3Y2.18%
ROICexc growth 5Y-3.34%
OM growth 3Y1.41%
OM growth 5Y-0.17%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.32%
GM growth 5Y-0.34%
F-Score4
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Debt/EBITDA 2.75
Cap/Depr 95.16%
Cap/Sales 12.64%
Interest Coverage 5.61
Cash Conversion 73.17%
Profit Quality 114.57%
Current Ratio 0.91
Quick Ratio 0.87
Altman-Z 1.34
F-Score4
WACC6.29%
ROIC/WACC1.17
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 Y7.63%
EPS Next 2Y7.25%
EPS Next 3Y8.19%
EPS Next 5Y7.48%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.56%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%
EBIT growth 1Y2.18%
EBIT growth 3Y1.74%
EBIT growth 5Y1.33%
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 Fundamental Analysis 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 7 / 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 7.63% 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%.