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

FRA:BAC • US92343V1044

Current stock price

39.35 EUR
-1.39 (-3.41%)
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

  • In the past year BAC was profitable.
  • In the past year BAC had a positive cash flow from operations.
  • Each year in the past 5 years BAC has been profitable.
  • Each year in the past 5 years BAC had a positive operating cash flow.
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

  • The Return On Assets of BAC (4.25%) is better than 75.76% 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 78.79% 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 78.79% of the companies in the same industry.
  • BAC had an Average Return On Invested Capital over the past 3 years of 7.50%. This is in line with the industry average of 7.91%.
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

  • Looking at the Profit Margin, with a value of 12.43%, BAC is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
  • BAC's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 23.45%, BAC belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
  • In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 59.07%, BAC is in line with its industry, outperforming 51.52% of the companies in the same industry.
  • BAC's Gross Margin has been stable in the last couple of years.
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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3

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.
  • The number of shares outstanding for BAC remains at a similar level compared to 1 year ago.
  • BAC has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for BAC is higher compared to a year ago.
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

  • BAC has an Altman-Z score of 1.31. 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 1.31, BAC is doing good in the industry, outperforming 60.61% 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 has a Debt to FCF ratio of 8.04. This is in the better half of the industry: BAC outperforms 63.64% of 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 63.64% 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
WACC6.1%
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.
  • BAC's Current ratio of 0.91 is fine compared to the rest of the industry. BAC outperforms 72.73% of its industry peers.
  • A Quick Ratio of 0.87 indicates that BAC may have some problems paying its short term obligations.
  • BAC's Quick ratio of 0.87 is fine compared to the rest of the industry. BAC outperforms 66.67% 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

  • The Earnings Per Share has been growing slightly by 2.61% over the past year.
  • 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

  • Based on estimates for the next years, BAC will show a small growth in Earnings Per Share. The EPS will grow by 7.48% on average per year.
  • BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y7.47%
EPS Next 2Y7.14%
EPS Next 3Y8.05%
EPS Next 5Y7.48%
Revenue Next Year4.5%
Revenue Next 2Y2.85%
Revenue Next 3Y2.22%
Revenue Next 5Y1.91%

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.
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

  • BAC is valuated reasonably with a Price/Earnings ratio of 9.79.
  • Based on the Price/Earnings ratio, BAC is valued cheaper than 90.91% of the companies in the same industry.
  • BAC is valuated cheaply when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 9.10, the valuation of BAC can be described as reasonable.
  • BAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 81.82% of the companies in the same industry.
  • BAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.79
Fwd PE 9.1
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 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as BAC.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAC indicates a somewhat cheap valuation: BAC is cheaper than 69.70% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.88
EV/EBITDA 6.57
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)1.31
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 5.92%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.03, BAC pays a better dividend. On top of this BAC pays more dividend than 87.88% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, BAC pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.92%

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.
  • BAC's earnings are growing more than its dividend. This makes the dividend growth 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 (4/10/2026, 7:00:00 PM)

39.35

-1.39 (-3.41%)

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 Cap165.97B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts73.71
Price Target44.97 (14.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.92%
Yearly Dividend2.33
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)2.3%
PT rev (3m)8.57%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.63%
Valuation
Industry RankSector Rank
PE 9.79
Fwd PE 9.1
P/S 1.41
P/FCF 9.88
P/OCF 5.23
P/B 1.86
P/tB N/A
EV/EBITDA 6.57
EPS(TTM)4.02
EY10.22%
EPS(NY)4.32
Fwd EY10.98%
FCF(TTM)3.98
FCFY10.12%
OCF(TTM)7.52
OCFY19.11%
SpS27.98
BVpS21.15
TBVpS-17.39
PEG (NY)1.31
PEG (5Y)N/A
Graham Number43.74
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
WACC6.1%
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 Year4.5%
Revenue Next 2Y2.85%
Revenue Next 3Y2.22%
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 6 / 10 to VERIZON COMMUNICATIONS INC (BAC.DE). This can be considered as Fairly Valued.


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 9.79 and the Price/Book (PB) ratio is 1.86.


Can you provide the financial health for BAC stock?

The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 3 / 10.