VERIZON COMMUNICATIONS INC (BAC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:BAC - US92343V1044 - Common Stock
34.51 EUR
+0.09 (+0.28%)
BAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. While BAC has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BAC. 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.
Each year in the past 5 years BAC had a positive operating cash flow.
1.2 Ratios
BAC has a Return On Assets of 5.11%. This is in the better half of the industry: BAC outperforms 72.73% of its industry peers.
The Return On Equity of BAC (18.88%) is better than 66.67% of its industry peers.
BAC has a better Return On Invested Capital (7.38%) than 69.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAC is in line with the industry average of 7.68%.
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
BAC has a Profit Margin of 14.43%. This is amongst the best in the industry. BAC outperforms 84.85% of its industry peers.
BAC's Profit Margin has declined in the last couple of years.
BAC has a Operating Margin of 23.63%. This is amongst the best in the industry. BAC outperforms 84.85% of its industry peers.
In the last couple of years the Operating Margin of BAC has remained more or less at the same level.
BAC has a Gross Margin (59.41%) which is in line with its industry peers.
BAC's Gross Margin has been stable in the last couple of years.
| 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
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.
The debt/assets ratio for BAC has been reduced compared to a year ago.
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.
BAC has a Altman-Z score of 1.29. This is in the better half of the industry: BAC outperforms 72.73% of its industry peers.
The Debt to FCF ratio of BAC is 7.11, which is on the high side as it means it would take BAC, 7.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.11, BAC is in line with its industry, outperforming 57.58% of the companies in the same industry.
A Debt/Equity ratio of 1.21 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 1.21, BAC is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.27
WACC5.79%
2.3 Liquidity
BAC has a Current 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 has a Current ratio (0.74) which is in line with 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 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.28% over the past year.
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.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
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.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 1.61% on average per year.
EPS Next Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.61%
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
A Price/Earnings ratio of 8.58 indicates a reasonable valuation of BAC.
BAC's Price/Earnings ratio is rather cheap when compared to the industry. BAC is cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, BAC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.19, the valuation of BAC can be described as reasonable.
78.79% 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 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAC is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAC is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 6.1 |
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)1.65
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 6.85%, which is a nice return.
BAC's Dividend Yield is rather good when compared to the industry average which is at 3.32. BAC pays more dividend than 90.91% of the companies in the same industry.
BAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
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
BAC pays out 57.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.56%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
FRA:BAC (12/30/2025, 7:00:00 PM)
34.51
+0.09 (+0.28%)
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 Cap145.51B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target41.42 (20.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
Yearly Dividend2.27
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)0.45%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.19 | ||
| P/S | 1.24 | ||
| P/FCF | 8.28 | ||
| P/OCF | 4.45 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.02
EY11.65%
EPS(NY)4.21
Fwd EY12.21%
FCF(TTM)4.17
FCFY12.08%
OCF(TTM)7.76
OCFY22.49%
SpS27.75
BVpS21.2
TBVpS-17.21
PEG (NY)1.65
PEG (5Y)N/A
Graham Number43.79
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 | 1.29 |
F-Score7
WACC5.79%
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 Y5.21%
EPS Next 2Y3.86%
EPS Next 3Y3.87%
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 2Y2.18%
Revenue Next 3Y1.73%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.43%
EBIT Next 3Y21.43%
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 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 7 / 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 5.21% 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 57.56%.