VERIZON COMMUNICATIONS INC (BAC.DE) Fundamental Analysis & Valuation

FRA:BAC • US92343V1044

Current stock price

39.725 EUR
-0.09 (-0.24%)
Last:

This BAC.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. BAC.DE Profitability Analysis

1.1 Basic Checks

  • BAC had positive earnings in the past year.
  • BAC had a positive operating cash flow in the past year.
  • In the past 5 years BAC has always been profitable.
  • BAC had a positive operating cash flow in each 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 2025 0 20B -20B 40B

1.2 Ratios

  • BAC has a Return On Assets of 4.25%. This is in the better half of the industry: BAC outperforms 77.42% of its industry peers.
  • Looking at the Return On Equity, with a value of 16.44%, BAC is in the better half of the industry, outperforming 77.42% 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for BAC is in line with the industry average of 7.41%.
Industry RankSector Rank
ROA 4.25%
ROE 16.44%
ROIC 7.38%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
BAC.DE Yearly ROA, ROE, ROICBAC.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • BAC has a better Profit Margin (12.43%) than 70.97% of its industry peers.
  • BAC's Profit Margin has declined in the last couple of years.
  • BAC has a better Operating Margin (23.45%) than 77.42% of its industry peers.
  • BAC's Operating Margin has been stable in the last couple of years.
  • BAC has a Gross Margin (59.07%) which is in line with 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 23.45%
PM (TTM) 12.43%
GM 59.07%
OM growth 3Y1.41%
OM growth 5Y-0.17%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.32%
GM growth 5Y-0.34%
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 2025 20 40 60

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2

2. BAC.DE Health Analysis

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.
  • Compared to 5 years ago, BAC has more shares outstanding
  • Compared to 1 year ago, BAC has a worse debt to assets ratio.
BAC.DE Yearly Shares OutstandingBAC.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 100B 200B 300B 400B

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.
  • With a decent Altman-Z score value of 1.31, BAC is doing good in the industry, outperforming 67.74% of the companies in the same industry.
  • 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's Debt to FCF ratio of 8.04 is in line compared to the rest of the industry. BAC outperforms 54.84% of its industry peers.
  • A Debt/Equity ratio of 1.34 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 1.34, BAC is doing worse than 61.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Altman-Z 1.31
ROIC/WACC1.21
WACC6.08%
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 2025 0 50B 100B

2.3 Liquidity

  • A Current Ratio of 0.91 indicates that BAC may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.91, BAC is in the better half of the industry, outperforming 61.29% 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 Quick ratio of 0.87. This is comparable to the rest of the industry: BAC outperforms 58.06% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.87
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 2025 20B 40B 60B

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

4

3. BAC.DE Growth Analysis

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%.
  • Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 1.50% on average per year.
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.
  • Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.91% on average per year.
EPS Next Y7.47%
EPS Next 2Y7.14%
EPS Next 3Y8.05%
EPS Next 5Y7.48%
Revenue Next Year4.51%
Revenue Next 2Y2.9%
Revenue Next 3Y2.23%
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.
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. BAC.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.91, the valuation of BAC can be described as reasonable.
  • 90.32% of the companies in the same industry are more expensive than BAC, based on the Price/Earnings ratio.
  • BAC is valuated cheaply when we compare the Price/Earnings ratio to 27.71, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 9.23 indicates a reasonable valuation of BAC.
  • 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.
  • When comparing the Price/Forward Earnings ratio of BAC to the average of the S&P500 Index (38.09), we can say BAC is valued rather cheaply.
Industry RankSector Rank
PE 9.91
Fwd PE 9.23
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.
  • Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.92
EV/EBITDA 6.6
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

  • BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of BAC may justify a higher PE ratio.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y7.14%
EPS Next 3Y8.05%

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7

5. BAC.DE Dividend Analysis

5.1 Amount

  • BAC has a Yearly Dividend Yield of 6.05%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.97, BAC pays a better dividend. On top of this BAC pays more dividend than 90.32% 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 1.81.
Industry RankSector Rank
Dividend Yield 6.05%

5.2 History

  • The dividend of BAC has a limited annual growth rate of 1.96%.
Dividend Growth(5Y)1.96%
Div Incr Years7
Div Non Decr Years7
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 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 2Y7.14%
EPS Next 3Y8.05%
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 2025 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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BAC.DE Fundamentals: All Metrics, Ratios and Statistics

VERIZON COMMUNICATIONS INC

FRA:BAC (4/21/2026, 7:00:00 PM)

39.725

-0.09 (-0.24%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30
Earnings (Next)04-27
Inst Owners68.68%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap166.05B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts73.71
Price Target44.82 (12.83%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.05%
Yearly Dividend2.31
Dividend Growth(5Y)1.96%
DP66.85%
Div Incr Years7
Div Non Decr Years7
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)1.96%
PT rev (3m)6.68%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.62%
Valuation
Industry RankSector Rank
PE 9.91
Fwd PE 9.23
P/S 1.41
P/FCF 9.92
P/OCF 5.26
P/B 1.87
P/tB N/A
EV/EBITDA 6.6
EPS(TTM)4.01
EY10.09%
EPS(NY)4.3
Fwd EY10.83%
FCF(TTM)4
FCFY10.08%
OCF(TTM)7.55
OCFY19.02%
SpS28.11
BVpS21.25
TBVpS-17.47
PEG (NY)1.33
PEG (5Y)N/A
Graham Number43.7871 (10.23%)
Profitability
Industry RankSector Rank
ROA 4.25%
ROE 16.44%
ROCE 9.48%
ROIC 7.38%
ROICexc 7.82%
ROICexgc 19.05%
OM 23.45%
PM (TTM) 12.43%
GM 59.07%
FCFM 14.24%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
ROICexc(3y)7.69%
ROICexc(5y)7.67%
ROICexgc(3y)18.88%
ROICexgc(5y)18.72%
ROCE(3y)9.63%
ROCE(5y)9.66%
ROICexgc growth 3Y2.91%
ROICexgc growth 5Y0.1%
ROICexc growth 3Y2.18%
ROICexc growth 5Y-3.34%
OM growth 3Y1.41%
OM growth 5Y-0.17%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.32%
GM growth 5Y-0.34%
F-Score4
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Debt/EBITDA 2.75
Cap/Depr 95.16%
Cap/Sales 12.64%
Interest Coverage 5.61
Cash Conversion 73.17%
Profit Quality 114.57%
Current Ratio 0.91
Quick Ratio 0.87
Altman-Z 1.31
F-Score4
WACC6.08%
ROIC/WACC1.21
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 Y7.47%
EPS Next 2Y7.14%
EPS Next 3Y8.05%
EPS Next 5Y7.48%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.51%
Revenue Next 2Y2.9%
Revenue Next 3Y2.23%
Revenue Next 5Y1.91%
EBIT growth 1Y2.18%
EBIT growth 3Y1.74%
EBIT growth 5Y1.33%
EBIT Next Year69.38%
EBIT Next 3Y21.39%
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 Fundamental Analysis 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.


How profitable is VERIZON COMMUNICATIONS INC (BAC.DE) stock?

VERIZON COMMUNICATIONS INC (BAC.DE) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for BAC stock?

The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (BAC.DE) is 9.91 and the Price/Book (PB) ratio is 1.87.


Can you provide the financial health for BAC stock?

The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 2 / 10.