VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:BAC • US92343V1044
36.855 EUR
+3.25 (+9.67%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, BAC scores 5 out of 10 in our fundamental rating. BAC was compared to 35 industry peers in the Diversified Telecommunication Services industry. BAC scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BAC. 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.
- 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
- Looking at the Return On Assets, with a value of 5.11%, BAC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 18.88%, BAC is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
- BAC has a better Return On Invested Capital (7.38%) than 65.71% 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 8.42%.
- The last Return On Invested Capital (7.38%) for BAC is above the 3 year average (7.15%), which is a sign of increasing profitability.
| 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
- BAC has a better Profit Margin (14.43%) than 85.71% of its industry peers.
- BAC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 23.63%, BAC belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
- BAC's Operating Margin has been stable in the last couple of years.
- BAC has a Gross Margin of 59.41%. This is comparable to the rest of the industry: BAC outperforms 48.57% of its industry peers.
- BAC's Gross Margin has been stable in the last couple of years.
| 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.
- 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.
- BAC has a better debt/assets ratio than last year.
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.
- BAC has a better Altman-Z score (1.28) than 62.86% of its industry peers.
- The Debt to FCF ratio of BAC is 7.11, which is on the high side as it means it would take BAC, 7.11 years of fcf income to pay off all of its debts.
- BAC has a Debt to FCF ratio (7.11) which is comparable to the rest of the industry.
- BAC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.21, BAC is in line with its industry, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.25
WACC5.92%
2.3 Liquidity
- BAC has a Current 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 Current ratio (0.74) which is in line with its industry peers.
- 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.
- The Quick ratio of BAC (0.69) 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 3.70% on average over the next years.
- Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y5.15%
EPS Next 2Y3.5%
EPS Next 3Y3.86%
EPS Next 5Y3.7%
Revenue Next Year2.55%
Revenue Next 2Y2.32%
Revenue Next 3Y1.9%
Revenue Next 5Y1.73%
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 9.35, the valuation of BAC can be described as reasonable.
- 88.57% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, BAC is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.97 indicates a reasonable valuation of BAC.
- Based on the Price/Forward Earnings ratio, BAC is valued cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.97 |
4.2 Price Multiples
- 68.57% of the companies in the same industry are more expensive than BAC, based on the Enterprise Value to EBITDA ratio.
- BAC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAC is cheaper than 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)N/A
EPS Next 2Y3.5%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.99%, BAC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.26, BAC pays a better dividend. On top of this BAC pays more dividend than 88.57% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
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.
- BAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.56%
EPS Next 2Y3.5%
EPS Next 3Y3.86%
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 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 5.15% in the next year.
Can you provide the dividend sustainability for BAC stock?
The dividend rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 8 / 10 and the dividend payout ratio is 57.56%.