Logo image of BAC.DE

VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis

Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock

35.04 EUR
+0.16 (+0.47%)
Last: 1/9/2026, 7:00:00 PM
Fundamental Rating

5

Taking everything into account, BAC scores 5 out of 10 in our fundamental rating. BAC was compared to 31 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. Finally BAC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

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.
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 0 20B -20B 40B

1.2 Ratios

BAC's Return On Assets of 5.11% is fine compared to the rest of the industry. BAC outperforms 75.68% 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 70.27% of the companies in the same industry.
The Return On Invested Capital of BAC (7.38%) is better than 67.57% 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 8.25%.
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 RankSector 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%
BAC.DE Yearly ROA, ROE, ROICBAC.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

Looking at the Profit Margin, with a value of 14.43%, BAC belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
BAC's Profit Margin has declined in the last couple of years.
BAC has a Operating Margin of 23.63%. This is amongst the best in the industry. BAC outperforms 86.49% 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 51.35% of its industry peers.
BAC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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 20 40 60

3

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.
Compared to 5 years ago, BAC has more shares outstanding
Compared to 1 year ago, BAC has an improved debt to assets ratio.
BAC.DE Yearly Shares OutstandingBAC.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 100B 200B 300B

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 70.27% 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.
The Debt to FCF ratio of BAC (7.11) is better than 64.86% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that BAC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.21, BAC perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 7.11
Altman-Z 1.29
ROIC/WACC1.27
WACC5.81%
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 0 50B 100B

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.
With a Current ratio value of 0.74, BAC perfoms like the industry average, outperforming 51.35% of the companies in the same 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.
Looking at the Quick ratio, with a value of 0.69, BAC is doing worse than 62.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.74
Quick Ratio 0.69
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 20B 40B 60B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.28% over the past year.
BAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.93% yearly.
BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
The Revenue has been growing slightly by 0.44% on average over the past years.
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

BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.70% yearly.
The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y3.7%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
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.
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

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.65, the valuation of BAC can be described as very reasonable.
BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 89.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. BAC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.24, which indicates a very decent valuation of BAC.
Based on the Price/Forward Earnings ratio, BAC is valued a bit cheaper than 78.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. BAC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.65
Fwd PE 8.24
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 64.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BAC is valued cheaper than 81.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.33
EV/EBITDA 6.12
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.
The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y3.87%

8

5. Dividend

5.1 Amount

BAC has a Yearly Dividend Yield of 6.80%, which is a nice return.
BAC's Dividend Yield is rather good when compared to the industry average which is at 3.15. BAC pays more dividend than 91.89% of the companies in the same industry.
BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
Industry RankSector Rank
Dividend Yield 6.8%

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
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 57.56% of its income as dividend. 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 2Y3.86%
EPS Next 3Y3.87%
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 0 10B -10B 20B -20B 30B
BAC.DE Dividend Payout.BAC.DE Dividend Payout, showing the Payout Ratio.BAC.DE Dividend Payout.PayoutRetained Earnings

VERIZON COMMUNICATIONS INC

FRA:BAC (1/9/2026, 7:00:00 PM)

35.04

+0.16 (+0.47%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)01-30 2026-01-30/amc
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap147.74B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target41.42 (18.21%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.8%
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)0.54%
PT rev (3m)-1.52%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-2.24%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 8.65
Fwd PE 8.24
P/S 1.25
P/FCF 8.33
P/OCF 4.47
P/B 1.64
P/tB N/A
EV/EBITDA 6.12
EPS(TTM)4.05
EY11.56%
EPS(NY)4.25
Fwd EY12.14%
FCF(TTM)4.21
FCFY12%
OCF(TTM)7.83
OCFY22.36%
SpS28.01
BVpS21.4
TBVpS-17.37
PEG (NY)1.66
PEG (5Y)N/A
Graham Number44.16
Profitability
Industry RankSector 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 RankSector 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
WACC5.81%
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 Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y3.7%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.73%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.43%
EBIT Next 3Y21.43%
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 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 5.21% 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%.