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

FRA:BAC • US92343V1044

43.8 EUR
+0.15 (+0.34%)
Last: Mar 5, 2026, 02:19 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

Overall BAC gets a fundamental rating of 4 out of 10. We evaluated BAC 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 correct valuation and a medium growth rate. Finally BAC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

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.
  • BAC had positive earnings in each of the past 5 years.
  • 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.
  • Looking at the Return On Equity, with a value of 16.44%, BAC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
  • BAC has a Return On Invested Capital of 6.85%. This is comparable to the rest of the industry: BAC outperforms 60.00% of its industry peers.
  • BAC had an Average Return On Invested Capital over the past 3 years of 7.32%. This 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

  • BAC has a Profit Margin of 12.43%. This is in the better half of the industry: BAC outperforms 76.67% of its industry peers.
  • In the last couple of years the Profit Margin of BAC has declined.
  • BAC has a Operating Margin of 21.76%. This is in the better half of the industry: BAC outperforms 80.00% of its industry peers.
  • BAC's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 58.92%, BAC is in line with its industry, outperforming 53.33% of the companies in the same industry.
  • BAC's Gross Margin has been stable in the last couple of years.
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

  • 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.
  • The number of shares outstanding for BAC has been increased compared to 5 years ago.
  • BAC has a worse debt/assets ratio than last year.
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 1.33. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.33, BAC is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 8.04, BAC is in line with its industry, outperforming 56.67% 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.
  • The Debt to Equity ratio of BAC (1.34) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Altman-Z 1.33
ROIC/WACC1.05
WACC6.53%
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 better Current ratio (0.91) than 73.33% of its industry peers.
  • A Quick Ratio of 0.87 indicates that BAC may have some problems paying its short term obligations.
  • With a decent Quick ratio value of 0.87, BAC is doing good in 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.
  • The Earnings Per Share has been decreasing by -0.79% on average over the past years.
  • Looking at the last year, BAC shows a small growth in Revenue. The Revenue has grown by 2.52% in the last 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

  • BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.48% yearly.
  • 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 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.
  • 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

  • The Price/Earnings ratio is 10.84, which indicates a very decent valuation of BAC.
  • Based on the Price/Earnings ratio, BAC is valued cheaper than 86.67% of the companies in the same industry.
  • BAC is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • BAC is valuated reasonably with a Price/Forward Earnings ratio of 10.19.
  • 83.33% of the companies in the same industry are more expensive than BAC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 25.11. BAC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.84
Fwd PE 10.19
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.
  • 63.33% of the companies in the same industry are more expensive than BAC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.94
EV/EBITDA 7.3
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.
PEG (NY)1.71
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%

More info and screens

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

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.
  • BAC's Dividend Yield is rather good when compared to the industry average which is at 3.04. BAC pays more dividend than 86.67% of the companies in the same industry.
  • BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
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

  • 66.85% of the earnings are spent on dividend by BAC. 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%
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 (3/5/2026, 2:19:53 PM)

43.8

+0.15 (+0.34%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30
Earnings (Next)04-21
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap184.70B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.57
Price Target43.96 (0.37%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.36%
Yearly Dividend2.31
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 10.84
Fwd PE 10.19
P/S 1.56
P/FCF 10.94
P/OCF 5.79
P/B 2.06
P/tB N/A
EV/EBITDA 7.3
EPS(TTM)4.04
EY9.22%
EPS(NY)4.3
Fwd EY9.82%
FCF(TTM)4.01
FCFY9.14%
OCF(TTM)7.56
OCFY17.26%
SpS28.13
BVpS21.26
TBVpS-17.48
PEG (NY)1.71
PEG (5Y)N/A
Graham Number43.97
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
WACC6.53%
ROIC/WACC1.05
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%.