VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:BAC • US92343V1044

40.035 EUR
+0.45 (+1.14%)
Last: Feb 5, 2026, 05:20 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BAC. BAC was compared to 31 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of BAC while its profitability can be described as average. BAC is valued quite cheap, but it does not seem to be growing. Finally BAC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
  • BAC had positive earnings in 4 of the past 5 years.
  • BAC had a positive operating cash flow in 4 of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 5.11%, BAC is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
  • BAC has a better Return On Equity (18.88%) than 64.52% of its industry peers.
  • With a decent Return On Invested Capital value of 7.38%, BAC is doing good in the industry, outperforming 64.52% 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 8.68%.
  • 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

  • BAC has a Profit Margin of 14.43%. This is amongst the best in the industry. BAC outperforms 87.10% 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 87.10% of its industry peers.
  • BAC's Operating Margin has been stable in the last couple of years.
  • BAC's Gross Margin of 59.41% is in line compared to the rest of the industry. BAC outperforms 51.61% 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 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

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3

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.
  • BAC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

  • 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.
  • BAC's Altman-Z score of 1.34 is fine compared to the rest of the industry. BAC outperforms 67.74% 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 of 7.11. This is in the better half of the industry: BAC outperforms 61.29% 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.
  • Looking at the Debt to Equity ratio, with a value of 1.21, BAC is in line with its industry, outperforming 48.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 7.11
Altman-Z 1.34
ROIC/WACC1.22
WACC6.07%
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

  • A Current Ratio of 0.74 indicates that BAC may have some problems paying its short term obligations.
  • BAC has a Current ratio of 0.74. This is comparable to the rest of the industry: BAC outperforms 51.61% of its industry peers.
  • A Quick Ratio of 0.69 indicates that BAC may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.69, BAC is doing worse than 61.29% 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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.61% over the past year.
  • BAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.79% yearly.
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.96%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.55% on average over the next years.
  • The Revenue is expected to grow by 1.53% on average over the next years.
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%

3.3 Evolution

  • The EPS 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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7

4. Valuation

4.1 Price/Earnings Ratio

  • BAC is valuated reasonably with a Price/Earnings ratio of 10.06.
  • 87.10% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (27.67), we can say BAC is valued rather cheaply.
  • BAC is valuated reasonably with a Price/Forward Earnings ratio of 9.62.
  • Based on the Price/Forward Earnings ratio, BAC is valued cheaper than 80.65% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of BAC to the average of the S&P500 Index (27.20), we can say BAC is valued rather cheaply.
Industry RankSector Rank
PE 10.06
Fwd PE 9.62
BAC.DE Price Earnings VS Forward Price EarningsBAC.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAC.
  • BAC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAC is cheaper than 80.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.66
EV/EBITDA 6.62
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

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BAC does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)N/A
EPS Next 2Y4.48%
EPS Next 3Y4.49%

More info and screens

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

8

5. Dividend

5.1 Amount

  • BAC has a Yearly Dividend Yield of 6.93%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.09, BAC pays a better dividend. On top of this BAC pays more dividend than 93.55% 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 1.82.
Industry RankSector Rank
Dividend Yield 6.93%

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.
  • The dividend of BAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.56%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
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

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VERIZON COMMUNICATIONS INC

FRA:BAC (2/5/2026, 5:20:54 PM)

40.035

+0.45 (+1.14%)

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 Cap168.80B
Revenue(TTM)N/A
Net Income(TTM)19.84B
Analysts72.73
Price Target42.02 (4.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.93%
Yearly Dividend2.24
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)1.44%
PT rev (3m)-0.43%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 10.06
Fwd PE 9.62
P/S 1.45
P/FCF 9.66
P/OCF 5.19
P/B 1.9
P/tB N/A
EV/EBITDA 6.62
EPS(TTM)3.98
EY9.94%
EPS(NY)4.16
Fwd EY10.39%
FCF(TTM)4.14
FCFY10.35%
OCF(TTM)7.72
OCFY19.27%
SpS27.59
BVpS21.08
TBVpS-17.1
PEG (NY)2.29
PEG (5Y)N/A
Graham Number43.44
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 1.34
F-Score7
WACC6.07%
ROIC/WACC1.22
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)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.96%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.36%
EBIT Next 3Y21.63%
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 6 / 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 4.4% 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%.