VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:BAC • US92343V1044
39.56 EUR
+0.37 (+0.94%)
Last: Feb 10, 2026, 03:50 PM
Overall BAC gets a fundamental rating of 4 out of 10. We evaluated BAC against 33 industry peers in the Diversified Telecommunication Services industry. BAC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BAC has a correct valuation and a medium growth rate. BAC also has an excellent dividend rating.
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.
- 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
- The Return On Assets of BAC (4.25%) is better than 60.61% of its industry peers.
- BAC has a better Return On Equity (16.44%) than 63.64% of its industry peers.
- BAC has a Return On Invested Capital (6.85%) which is in line with 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 8.59%.
| Industry Rank | Sector 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%
1.3 Margins
- BAC has a better Profit Margin (12.43%) than 75.76% 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 78.79% of its industry peers.
- In the last couple of years the Operating Margin of BAC has declined.
- BAC has a Gross Margin (58.92%) which is in line with its industry peers.
- BAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- BAC has more shares outstanding than it did 5 years ago.
- BAC has a worse debt/assets ratio than last year.
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 has a Altman-Z score of 1.29. This is in the better half of the industry: BAC outperforms 60.61% of its industry peers.
- BAC has a debt to FCF ratio of 8.04. This is a slightly negative value and a sign of low solvency as BAC would need 8.04 years to pay back of all of its debts.
- BAC has a Debt to FCF ratio (8.04) which is in line with its industry peers.
- BAC has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.34, BAC is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.06
WACC6.49%
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.
- The Current ratio of BAC (0.91) is better than 72.73% 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 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.61%.
- Measured over the past years, BAC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.79% on average per year.
- The Revenue has been growing slightly by 2.52% in the past year.
- BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.50% yearly.
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
- Based on estimates for the next years, BAC will show a small growth in Earnings Per Share. The EPS will grow by 3.55% on average per year.
- BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.53% yearly.
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y3.55%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.99 indicates a reasonable valuation of BAC.
- 87.88% 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 (28.06), we can say BAC is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.39 indicates a reasonable valuation of BAC.
- 81.82% of the companies in the same industry are more expensive than BAC, based on the Price/Forward Earnings ratio.
- BAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
- BAC's Enterprise Value to EBITDA ratio is in line with the industry average.
- 72.73% of the companies in the same industry are more expensive than BAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 6.93 |
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)1.57
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%
5. Dividend
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 2.92. BAC pays more dividend than 87.88% of the companies in the same industry.
- BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector 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
5.3 Sustainability
- BAC pays out 66.85% of its income as dividend. 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%
FRA:BAC (2/10/2026, 3:50:32 PM)
39.56
+0.37 (+0.94%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30 2026-01-30/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap166.80B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.73
Price Target42.33 (7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)2.2%
PT rev (3m)0.31%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)1.18%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.39 | ||
| P/S | 1.43 | ||
| P/FCF | 10.08 | ||
| P/OCF | 5.34 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)3.96
EY10.01%
EPS(NY)4.21
Fwd EY10.65%
FCF(TTM)3.93
FCFY9.92%
OCF(TTM)7.41
OCFY18.73%
SpS27.57
BVpS20.84
TBVpS-17.14
PEG (NY)1.57
PEG (5Y)N/A
Graham Number43.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.29 |
F-Score4
WACC6.49%
ROIC/WACC1.06
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 5Y3.55%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
Revenue Next 5Y1.53%
EBIT growth 1Y-5.19%
EBIT growth 3Y-0.82%
EBIT growth 5Y-0.21%
EBIT Next Year64.6%
EBIT Next 3Y19.95%
EBIT Next 5Y12.49%
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%.