VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - FRA:BAC - US92343V1044 - Common Stock
35.445 EUR
+0.29 (+0.81%)
Taking everything into account, BAC scores 5 out of 10 in our fundamental rating. BAC was compared to 30 industry peers in the Diversified Telecommunication Services industry. BAC scores excellent on profitability, but there are concerns on its financial health. BAC has a correct valuation and a medium growth rate. BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BAC was profitable.
BAC had a positive operating cash flow in the past year.
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.
1.2 Ratios
BAC has a better Return On Assets (5.11%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 18.88%, BAC is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.38%, BAC is in the better half of the industry, outperforming 73.33% 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 8.12%.
The 3 year average ROIC (7.15%) for BAC is below the current ROIC(7.38%), indicating increased profibility in the last year.
| 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
The Profit Margin of BAC (14.43%) is better than 90.00% of its industry peers.
In the last couple of years the Profit Margin of BAC has declined.
BAC's Operating Margin of 23.63% is amongst the best of the industry. BAC outperforms 90.00% 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's Gross Margin of 59.41% 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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BAC is creating some value.
Compared to 1 year ago, BAC has about the same amount of shares outstanding.
Compared to 5 years ago, BAC has more shares outstanding
Compared to 1 year ago, BAC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that BAC is in the distress zone and has some risk of bankruptcy.
BAC's Altman-Z score of 1.29 is fine compared to the rest of the industry. BAC outperforms 66.67% of its industry peers.
BAC has a debt to FCF ratio of 7.11. This is a slightly negative value and a sign of low solvency as BAC would need 7.11 years to pay back of all of its debts.
BAC's Debt to FCF ratio of 7.11 is in line compared to the rest of the industry. BAC outperforms 60.00% of its industry peers.
BAC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BAC (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.27
WACC5.8%
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 comparable to the rest of the industry.
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 worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.28% over the past year.
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.
Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
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
Based on estimates for the next years, BAC will show a small growth in Earnings Per Share. The EPS will grow by 4.31% on average per year.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y5.3%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
EPS Next 5Y4.31%
Revenue Next Year2.57%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
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.
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
The Price/Earnings ratio is 8.75, which indicates a very decent valuation of BAC.
Based on the Price/Earnings ratio, BAC is valued cheaper than 93.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. BAC is valued rather cheaply when compared to this.
BAC is valuated reasonably with a Price/Forward Earnings ratio of 8.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 80.00% of the companies listed in the same industry.
BAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.31 |
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 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.43 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y4.02%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.99%, BAC is a good candidate for dividend investing.
BAC's Dividend Yield is rather good when compared to the industry average which is at 4.92. BAC pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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
BAC pays out 57.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.56%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
FRA:BAC (11/17/2025, 5:14:42 PM)
35.445
+0.29 (+0.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.92%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap149.45B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target42.63 (20.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
Yearly Dividend2.3
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)2
Avg EPS beat(8)-1.26%
EPS beat(12)4
Avg EPS beat(12)-1.17%
EPS beat(16)4
Avg EPS beat(16)-1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)1.37%
PT rev (3m)0.29%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.27 | ||
| P/FCF | 8.43 | ||
| P/OCF | 4.53 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)4.05
EY11.43%
EPS(NY)4.26
Fwd EY12.03%
FCF(TTM)4.2
FCFY11.86%
OCF(TTM)7.83
OCFY22.09%
SpS28
BVpS21.39
TBVpS-17.36
PEG (NY)1.65
PEG (5Y)N/A
Graham Number44.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROCE | 9.88% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 18.55% | ||
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% | ||
| FCFM | 15.02% |
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%
ROICexgc growth 3Y0.43%
ROICexgc 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 97.11% | ||
| Cap/Sales | 12.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.29 |
F-Score7
WACC5.8%
ROIC/WACC1.27
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)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.3%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
EPS Next 5Y4.31%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.57%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.73%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.37%
EBIT Next 3Y21.64%
EBIT Next 5Y13.55%
FCF growth 1Y50.97%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y1.89%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%
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 of VERIZON COMMUNICATIONS INC (BAC.DE) 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 are the PE and PB ratios of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (BAC.DE) is 8.75 and the Price/Book (PB) ratio is 1.66.
What is the financial health of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 2 / 10.