VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
FRA:BAC • US92343V1044
40.915 EUR
-0.59 (-1.41%)
Last: Feb 18, 2026, 05:19 PM
We assign a fundamental rating of 4 out of 10 to BAC. BAC was compared to 33 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 has a decent growth rate and is not valued too expensively. BAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BAC had positive earnings in the past year.
- In the past year BAC had a positive cash flow from operations.
- In the past 5 years BAC has always been profitable.
- In the past 5 years BAC always reported a positive cash flow from operatings.
1.2 Ratios
- BAC's Return On Assets of 4.25% is fine compared to the rest of the industry. BAC outperforms 63.64% of its industry peers.
- The Return On Equity of BAC (16.44%) is better than 63.64% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.85%, BAC is in line with its industry, outperforming 57.58% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 8.33%.
| 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 72.73% of its industry peers.
- In the last couple of years the Profit Margin of BAC has declined.
- BAC has a better Operating Margin (21.76%) than 75.76% 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 45.45% of the companies in the same industry.
- 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
- BAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 1.31, we must say that BAC is in the distress zone and has some risk of bankruptcy.
- BAC has a better Altman-Z score (1.31) than 60.61% of its industry peers.
- 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 51.52% 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.
- 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 | 1.31 |
ROIC/WACC1.06
WACC6.45%
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 72.73% of its industry peers.
- BAC has a Quick 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.
- Looking at the Quick ratio, with a value of 0.87, BAC is in the better half of 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%.
- BAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.79% yearly.
- BAC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.52%.
- 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.
- BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue Next Year4.29%
Revenue Next 2Y2.74%
Revenue Next 3Y2.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
- BAC is valuated reasonably with a Price/Earnings ratio of 10.28.
- BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 87.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.16, BAC is valued rather cheaply.
- BAC is valuated reasonably with a Price/Forward Earnings ratio of 9.66.
- BAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 84.85% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, BAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAC is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 7.15 |
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)1.62
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 3.14. 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 1.82.
| 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
- 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%
FRA:BAC (2/18/2026, 5:19:42 PM)
40.915
-0.59 (-1.41%)
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 Cap172.54B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.57
Price Target42.33 (3.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend2.3
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)-0.72%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)1.18%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)2.36%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 9.66 | ||
| P/S | 1.48 | ||
| P/FCF | 10.37 | ||
| P/OCF | 5.49 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.15 |
EPS(TTM)3.98
EY9.73%
EPS(NY)4.24
Fwd EY10.35%
FCF(TTM)3.95
FCFY9.64%
OCF(TTM)7.45
OCFY18.2%
SpS27.71
BVpS20.95
TBVpS-17.22
PEG (NY)1.62
PEG (5Y)N/A
Graham Number43.31
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 | 1.31 |
F-Score4
WACC6.45%
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 5Y7.48%
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 5Y1.91%
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 5Y12.97%
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%.