BANK OF AMERICA CORP(NYSE:BAC) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, BAC scores 3 out of 10 in our fundamental rating. BAC was compared to 404 industry peers in the Banks industry. BAC may be in some trouble as it scores bad on both profitability and health. BAC is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

BAC had positive earnings in the past year.

In the past year BAC has reported a negative cash flow from operations.

Each year in the past 5 years BAC has been profitable.

In multiple years BAC reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.66%, BAC is doing worse than 60.80% of the companies in the same industry.

Looking at the Return On Equity, with a value of 7.40%, BAC is in line with its industry, outperforming 43.97% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.66%
ROE	7.4%
ROIC	N/A

ROA(3y)0.81%

ROA(5y)0.79%

ROE(3y)8.89%

ROE(5y)8.81%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of BAC (22.28%) is comparable to the rest of the industry.

In the last couple of years the Profit Margin of BAC has declined.

The Operating Margin and Gross Margin are not available for BAC so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	22.28%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-9.96%

PM growth 5Y-2.56%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

BAC does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, BAC has less shares outstanding

The number of shares outstanding for BAC has been reduced compared to 5 years ago.

The debt/assets ratio for BAC is higher compared to a year ago.

2.2 Solvency

A Debt/Equity ratio of 2.46 is on the high side and indicates that BAC has dependencies on debt financing.

BAC has a worse Debt to Equity ratio (2.46) than 93.47% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.46
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACCN/A

WACC11.6%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for BAC have decreased by -3.80% in the last year.

The Earnings Per Share has been growing slightly by 3.50% on average over the past years.

The Revenue has been growing slightly by 3.35% in the past year.

Measured over the past years, BAC shows a small growth in Revenue. The Revenue has been growing by 2.23% on average per year.

EPS 1Y (TTM)-3.8%

EPS 3Y-0.4%

EPS 5Y3.5%

EPS Q2Q%17.14%

Revenue 1Y (TTM)3.35%

Revenue growth 3Y4.57%

Revenue growth 5Y2.23%

Sales Q2Q%15.37%

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 7.05% on average per year.

Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.

EPS Next Y13.28%

EPS Next 2Y15.85%

EPS Next 3Y14.2%

EPS Next 5Y7.05%

Revenue Next Year6.67%

Revenue Next 2Y6.43%

Revenue Next 3Y5.6%

Revenue Next 5Y3.18%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.19, which indicates a correct valuation of BAC.

BAC's Price/Earnings ratio is in line with the industry average.

When comparing the Price/Earnings ratio of BAC to the average of the S&P500 Index (28.20), we can say BAC is valued slightly cheaper.

A Price/Forward Earnings ratio of 12.52 indicates a correct valuation of BAC.

Compared to the rest of the industry, the Price/Forward Earnings ratio of BAC is on the same level as its industry peers.

The average S&P500 Price/Forward Earnings ratio is at 94.48. BAC is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	14.19
Fwd PE	12.52

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

BAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

A more expensive valuation may be justified as BAC's earnings are expected to grow with 14.20% in the coming years.

PEG (NY)1.07

PEG (5Y)4.05

EPS Next 2Y15.85%

EPS Next 3Y14.2%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.18%, BAC has a reasonable but not impressive dividend return.

BAC's Dividend Yield is slightly below the industry average, which is at 3.10.

BAC's Dividend Yield is comparable with the S&P500 average which is at 2.30.

		Industry Rank	Sector Rank
Dividend Yield	2.18%

5.2 History

On average, the dividend of BAC grows each year by 10.60%, which is quite nice.

BAC has been paying a dividend for at least 10 years, so it has a reliable track record.

BAC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Dividend Growth(5Y)10.6%

Div Incr Years11

Div Non Decr Years15

5.3 Sustainability

BAC pays out 43.12% of its income as dividend. This is a bit on the high side, but may be sustainable.

The dividend of BAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP43.12%

EPS Next 2Y15.85%

EPS Next 3Y14.2%

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BANK OF AMERICA CORP

NYSE:BAC (2/10/2025, 8:04:00 PM)

After market: 46.65 -0.02 (-0.04%)

46.67

-0.73 (-1.54%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)01-16 2025-01-16/bmo

Earnings (Next)N/A N/A

Inst Owners60.7%

Inst Owner Change-11.08%

Ins Owners0.13%

Ins Owner Change-0.51%

Market Cap358.09B

Analysts80

Price Target51.83 (11.06%)

Short Float %1.05%

Short Ratio2.15

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.18%

Yearly Dividend1.14

Dividend Growth(5Y)10.6%

DP43.12%

Div Incr Years11

Div Non Decr Years15

Ex-Date03-07 2025-03-07 (0.26)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)3.82%

Min EPS beat(2)3.15%

Max EPS beat(2)4.48%

EPS beat(4)4

Avg EPS beat(4)4.46%

Min EPS beat(4)1.6%

Max EPS beat(4)8.61%

EPS beat(8)8

Avg EPS beat(8)6.75%

EPS beat(12)12

Avg EPS beat(12)6.15%

EPS beat(16)16

Avg EPS beat(16)8.21%

Revenue beat(2)1

Avg Revenue beat(2)0.03%

Min Revenue beat(2)-0.19%

Max Revenue beat(2)0.26%

Revenue beat(4)2

Avg Revenue beat(4)-1.69%

Min Revenue beat(4)-7.83%

Max Revenue beat(4)1.01%

Revenue beat(8)4

Avg Revenue beat(8)-0.46%

Revenue beat(12)5

Avg Revenue beat(12)-0.35%

Revenue beat(16)7

Avg Revenue beat(16)-0.31%

PT rev (1m)4.29%

PT rev (3m)10.46%

EPS NQ rev (1m)-1.64%

EPS NQ rev (3m)-1.64%

EPS NY rev (1m)0.52%

EPS NY rev (3m)0.94%

Revenue NQ rev (1m)-0.04%

Revenue NQ rev (3m)-0.04%

Revenue NY rev (1m)1.46%

Revenue NY rev (3m)2.01%

Valuation

		Industry Rank	Sector Rank
PE	14.19
Fwd PE	12.52
P/S	3.64
P/FCF	N/A
P/OCF	N/A
P/B	1.21
P/tB	1.59
EV/EBITDA	N/A

EPS(TTM)3.29

EY7.05%

EPS(NY)3.73

Fwd EY7.99%

FCF(TTM)-0.26

FCFYN/A

OCF(TTM)-0.26

OCFYN/A

SpS12.84

BVpS38.64

TBVpS29.4

PEG (NY)1.07

PEG (5Y)4.05

Profitability

		Industry Rank	Sector Rank
ROA	0.66%
ROE	7.4%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	22.28%
GM	N/A
FCFM	N/A

ROA(3y)0.81%

ROA(5y)0.79%

ROE(3y)8.89%

ROE(5y)8.81%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-9.96%

PM growth 5Y-2.56%

GM growth 3YN/A

GM growth 5YN/A

F-Score2

Asset Turnover0.03

Health

		Industry Rank	Sector Rank
Debt/Equity	2.46
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score2

WACC11.6%

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-3.8%

EPS 3Y-0.4%

EPS 5Y3.5%

EPS Q2Q%17.14%

EPS Next Y13.28%

EPS Next 2Y15.85%

EPS Next 3Y14.2%

EPS Next 5Y7.05%

Revenue 1Y (TTM)3.35%

Revenue growth 3Y4.57%

Revenue growth 5Y2.23%

Sales Q2Q%15.37%

Revenue Next Year6.67%

Revenue Next 2Y6.43%

Revenue Next 3Y5.6%

Revenue Next 5Y3.18%

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-104.61%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-104.61%

OCF growth 3YN/A

OCF growth 5YN/A

BANK OF AMERICA CORP (BAC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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