VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock
35.48 EUR
-0.41 (-1.13%)
BAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Diversified Telecommunication Services industry. While BAC belongs to the best of the industry regarding profitability, there are concerns on its financial health. BAC may be a bit undervalued, certainly considering the very reasonable score on growth 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.
BAC had positive earnings in each of the past 5 years.
BAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BAC (5.11%) is better than 78.13% of its industry peers.
Looking at the Return On Equity, with a value of 18.88%, BAC is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
BAC has a Return On Invested Capital of 7.38%. This is in the better half of the industry: BAC outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BAC is in line with the industry average of 7.83%.
The last Return On Invested Capital (7.38%) for BAC is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROIC | 7.38% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
1.3 Margins
Looking at the Profit Margin, with a value of 14.43%, BAC belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
BAC's Profit Margin has declined in the last couple of years.
BAC's Operating Margin of 23.63% is amongst the best of the industry. BAC outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
With a Gross Margin value of 59.41%, BAC perfoms like the industry average, outperforming 46.88% of the companies in the same 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 | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% |
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
2. Health
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.
BAC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BAC has more shares outstanding
Compared to 1 year ago, BAC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that BAC is in the distress zone and has some risk of bankruptcy.
BAC's Altman-Z score of 1.30 is fine compared to the rest of the industry. BAC outperforms 71.88% of its industry peers.
BAC has a debt to FCF ratio of 7.11. This is a slightly negative value and a sign of low solvency as BAC would need 7.11 years to pay back of all of its debts.
The Debt to FCF ratio of BAC (7.11) is better than 62.50% of its industry peers.
BAC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.21, BAC is in line with its industry, outperforming 53.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.27
WACC5.81%
2.3 Liquidity
A Current Ratio of 0.74 indicates that BAC may have some problems paying its short term obligations.
BAC's Current ratio of 0.74 is in line compared to the rest of the industry. BAC outperforms 56.25% of its industry peers.
BAC has a Quick Ratio of 0.74. 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 Quick ratio of 0.69 is in line compared to the rest of the industry. BAC outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
BAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.28%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
Looking at the last year, BAC shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
3.2 Future
BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.16% yearly.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.76.
Based on the Price/Earnings ratio, BAC is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. BAC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.31, the valuation of BAC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, BAC is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.56. BAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than BAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BAC is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
The 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)1.64
PEG (5Y)N/A
EPS Next 2Y4.1%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, BAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.63, BAC pays a better dividend. On top of this BAC pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, BAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
The dividend of BAC has a limited annual growth rate of 1.99%.
Dividend Growth(5Y)1.99%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
57.56% of the earnings are spent on dividend by BAC. This is a bit on the high side, but may be sustainable.
BAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.56%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
FRA:BAC (12/8/2025, 7:00:00 PM)
35.48
-0.41 (-1.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners68.86%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap149.60B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target41.2 (16.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend2.3
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)2
Avg EPS beat(8)-1.26%
EPS beat(12)4
Avg EPS beat(12)-1.17%
EPS beat(16)4
Avg EPS beat(16)-1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)-2.37%
PT rev (3m)-3.12%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.27 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.53 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)4.05
EY11.41%
EPS(NY)4.27
Fwd EY12.04%
FCF(TTM)4.21
FCFY11.85%
OCF(TTM)7.83
OCFY22.07%
SpS28
BVpS21.39
TBVpS-17.36
PEG (NY)1.64
PEG (5Y)N/A
Graham Number44.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROCE | 9.88% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 18.55% | ||
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% | ||
| FCFM | 15.02% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
ROICexc(3y)7.22%
ROICexc(5y)7.63%
ROICexgc(3y)17.6%
ROICexgc(5y)17.93%
ROCE(3y)9.58%
ROCE(5y)9.96%
ROICexgc growth 3Y0.43%
ROICexgc growth 5Y-0.86%
ROICexc growth 3Y-0.4%
ROICexc growth 5Y-4.26%
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 97.11% | ||
| Cap/Sales | 12.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.3 |
F-Score7
WACC5.81%
ROIC/WACC1.27
Cap/Depr(3y)132.1%
Cap/Depr(5y)187.34%
Cap/Sales(3y)17.07%
Cap/Sales(5y)23.57%
Profit Quality(3y)89.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.1%
EBIT Next 3Y21.48%
EBIT Next 5Y13.42%
FCF growth 1Y50.97%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y1.89%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%
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 of VERIZON COMMUNICATIONS INC (BAC.DE) 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 7 / 10.
What are the PE and PB ratios of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (BAC.DE) is 8.76 and the Price/Book (PB) ratio is 1.66.
What is the financial health of VERIZON COMMUNICATIONS INC (BAC.DE) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (BAC.DE) is 3 / 10.