VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock
34.045 EUR
+0.04 (+0.1%)
Overall BAC gets a fundamental rating of 5 out of 10. We evaluated BAC against 31 industry peers in the Diversified Telecommunication Services industry. BAC has an excellent profitability rating, but there are concerns on its financial health. BAC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. BAC also has an excellent dividend rating.
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.
In the past 5 years BAC has always been profitable.
BAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAC has a Return On Assets of 5.11%. This is amongst the best in the industry. BAC outperforms 80.65% of its industry peers.
With a decent Return On Equity value of 18.88%, BAC is doing good in the industry, outperforming 74.19% 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 74.19% 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 7.74%.
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
BAC has a better Profit Margin (14.43%) than 90.32% of its industry peers.
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 87.10% of its industry peers.
BAC's Operating Margin has been stable in the last couple of years.
BAC has a Gross Margin of 59.41%. This is comparable 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BAC is still creating some value.
The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
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
BAC has an Altman-Z score of 1.28. 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 1.28 is fine compared to the rest of the industry. BAC outperforms 74.19% 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's Debt to FCF ratio of 7.11 is fine compared to the rest of the industry. BAC outperforms 64.52% 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.
BAC has a Debt to Equity ratio of 1.21. This is comparable to the rest of the industry: BAC outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.28
WACC5.75%
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 in line with its industry peers.
A Quick Ratio of 0.69 indicates that BAC may have some problems paying its short term obligations.
BAC's Quick ratio of 0.69 is in line compared to the rest of the industry. BAC outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.28%.
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.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
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 4.16% yearly.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.51, the valuation of BAC can be described as very reasonable.
93.55% 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 (26.59), we can say BAC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.07, the valuation of BAC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC indicates a rather cheap valuation: BAC is cheaper than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.07 |
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 67.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BAC is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BAC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y4.1%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 6.69%, which is a nice return.
Compared to an average industry Dividend Yield of 3.36, BAC pays a better dividend. On top of this BAC pays more dividend than 87.10% 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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
57.56% of the earnings are spent on dividend by BAC. 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 2Y4.1%
EPS Next 3Y3.99%
FRA:BAC (12/23/2025, 7:00:00 PM)
34.045
+0.04 (+0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners68.86%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap143.55B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend2.28
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)-3.37%
PT rev (3m)-1.58%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.07 | ||
| P/S | 1.23 | ||
| P/FCF | 8.19 | ||
| P/OCF | 4.4 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.07 |
EPS(TTM)4
EY11.75%
EPS(NY)4.22
Fwd EY12.39%
FCF(TTM)4.15
FCFY12.2%
OCF(TTM)7.74
OCFY22.73%
SpS27.66
BVpS21.14
TBVpS-17.15
PEG (NY)1.59
PEG (5Y)N/A
Graham Number43.61
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 | 1.28 |
F-Score7
WACC5.75%
ROIC/WACC1.28
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 Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.1%
EBIT Next 3Y21.48%
EBIT Next 5Y13.42%
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 8.51 and the Price/Book (PB) ratio is 1.61.
What is the financial health of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 3 / 10.