VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:BAC • US92343V1044
39.09 EUR
-0.67 (-1.7%)
Last: Feb 6, 2026, 07:00 PM
Taking everything into account, BAC scores 4 out of 10 in our fundamental rating. BAC was compared to 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. Finally 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 4.25%. This is in the better half of the industry: BAC outperforms 64.52% of its industry peers.
- BAC has a better Return On Equity (16.44%) than 64.52% of its industry peers.
- The Return On Invested Capital of BAC (6.85%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for BAC 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's Profit Margin of 12.43% is fine compared to the rest of the industry. BAC outperforms 77.42% of its industry peers.
- 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 77.42% of the companies in the same industry.
- BAC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 58.92%, BAC perfoms like the industry average, outperforming 51.61% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BAC is creating some value.
- The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BAC has been increased compared to 5 years ago.
- Compared to 1 year ago, BAC has a worse debt to assets ratio.
2.2 Solvency
- BAC has an Altman-Z score of 1.29. This is a bad value and indicates that BAC is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.29, BAC is doing good in the industry, outperforming 61.29% of the companies in the same industry.
- 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 comparable to the rest of the 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: 67.74% 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/WACC1.14
WACC6%
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's Current ratio of 0.91 is fine compared to the rest of the industry. BAC outperforms 70.97% 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 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.61% over the past year.
- BAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.79% yearly.
- The Revenue has been growing slightly by 2.52% in the past year.
- 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 3.55% yearly.
- 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
- 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.80, the valuation of BAC can be described as reasonable.
- BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 87.10% 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 27.93.
- Based on the Price/Forward Earnings ratio of 9.20, 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 80.65% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.77. BAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
- BAC's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, BAC is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 6.89 |
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)1.54
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.
- Compared to an average industry Dividend Yield of 2.92, BAC pays a better dividend. On top of this BAC pays more dividend than 87.10% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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 (2/6/2026, 7:00:00 PM)
39.09
-0.67 (-1.7%)
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 Cap164.82B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.73
Price Target42.33 (8.29%)
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 | 9.8 | ||
| Fwd PE | 9.2 | ||
| P/S | 1.41 | ||
| P/FCF | 9.88 | ||
| P/OCF | 5.23 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.89 |
EPS(TTM)3.99
EY10.21%
EPS(NY)4.25
Fwd EY10.87%
FCF(TTM)3.96
FCFY10.12%
OCF(TTM)7.47
OCFY19.1%
SpS27.79
BVpS21.01
TBVpS-17.27
PEG (NY)1.54
PEG (5Y)N/A
Graham Number43.43
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%
ROIC/WACC1.14
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 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.
What is the profitability of BAC stock?
VERIZON COMMUNICATIONS INC (BAC.DE) has a profitability rating of 6 / 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 8 / 10 and the dividend payout ratio is 66.85%.