VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
FRA:BAC • US92343V1044
41.46 EUR
-0.76 (-1.8%)
Last: Feb 13, 2026, 07:00 PM
BAC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent 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.
- In the past 5 years BAC always reported a positive cash flow from operatings.
1.2 Ratios
- BAC has a Return On Assets of 4.25%. This is in the better half of the industry: BAC outperforms 63.64% of its industry peers.
- With a decent Return On Equity value of 16.44%, BAC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- 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.
- 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 8.33%.
| 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
- Looking at the Profit Margin, with a value of 12.43%, BAC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- In the last couple of years the Profit Margin of BAC has declined.
- With a decent Operating Margin value of 21.76%, BAC is doing good in the industry, outperforming 75.76% of the companies in the same industry.
- In the last couple of years the Operating Margin of BAC has declined.
- BAC has a Gross Margin (58.92%) which is comparable to the rest of the industry.
- 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 | 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.
- The debt/assets ratio for BAC is higher compared to a year ago.
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 Altman-Z score of 1.31. This is in the better half of the industry: BAC outperforms 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.
- 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.
- Looking at the Debt to Equity ratio, with a value of 1.34, BAC is doing worse than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.06
WACC6.46%
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.
- With a decent Current ratio value of 0.91, BAC is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- 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.
- BAC has a better Quick ratio (0.87) than 69.70% of its industry peers.
| 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%.
- The Earnings Per Share has been decreasing by -0.79% on average over the past years.
- Looking at the last year, BAC shows a small growth in Revenue. The Revenue has grown by 2.52% in the last 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
- BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.48% yearly.
- The Revenue is expected to grow by 1.91% on average over the next years.
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.
- 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 10.44, the valuation of BAC can be described as very reasonable.
- Based on the Price/Earnings ratio, BAC is valued cheaper than 87.88% of the companies in the same industry.
- BAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.68.
- Based on the Price/Forward Earnings ratio of 9.82, the valuation of BAC can be described as reasonable.
- 84.85% of the companies in the same industry are more expensive than BAC, based on the Price/Forward Earnings ratio.
- BAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
- BAC's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.64
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- BAC has a Yearly Dividend Yield of 6.36%, which is a nice return.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.84, BAC pays a better dividend.
| 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 (2/13/2026, 7:00:00 PM)
41.46
-0.76 (-1.8%)
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 Cap174.84B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.57
Price Target42.33 (2.1%)
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 | 10.44 | ||
| Fwd PE | 9.82 | ||
| P/S | 1.5 | ||
| P/FCF | 10.54 | ||
| P/OCF | 5.58 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.16 |
EPS(TTM)3.97
EY9.58%
EPS(NY)4.22
Fwd EY10.19%
FCF(TTM)3.93
FCFY9.49%
OCF(TTM)7.42
OCFY17.91%
SpS27.63
BVpS20.88
TBVpS-17.17
PEG (NY)1.64
PEG (5Y)N/A
Graham Number43.19
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
WACC6.46%
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%.