BANK OF AMERICA CORP (BAC)

US0605051046 - Common Stock

45.4  +0.59 (+1.32%)

After market: 45.5519 +0.15 (+0.33%)

Fundamental Rating

2

BAC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 403 industry peers in the Banks industry. BAC has a bad profitability rating. Also its financial health evaluation is rather negative. BAC has a expensive valuation and it also scores bad on growth.



2

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

The Return On Assets of BAC (0.66%) is worse than 60.45% of its industry peers.
The Return On Equity of BAC (7.40%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 0.66%
ROE 7.4%
ROIC N/A
ROA(3y)0.87%
ROA(5y)0.85%
ROE(3y)9.79%
ROE(5y)9.04%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

BAC has a Profit Margin (22.28%) which is in line with its industry peers.
BAC's Profit Margin has declined in the last couple of years.
BAC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 22.28%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y9.41%
PM growth 5Y-2.97%
GM growth 3YN/A
GM growth 5YN/A

1

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
Compared to 5 years ago, BAC has less shares outstanding
Compared to 1 year ago, BAC has a worse debt to assets ratio.

2.2 Solvency

BAC has a Debt/Equity ratio of 2.46. This is a high value indicating a heavy dependency on external financing.
BAC has a worse Debt to Equity ratio (2.46) than 93.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.46
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACC11.63%

2.3 Liquidity

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

3

3. Growth

3.1 Past

The earnings per share for BAC have decreased strongly by -11.20% in the last year.
BAC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.39% yearly.
The Revenue has decreased by -2.62% in the past year.
BAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.61% yearly.
EPS 1Y (TTM)-11.2%
EPS 3Y22.95%
EPS 5Y5.39%
EPS Q2Q%-10%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y4.85%
Revenue growth 5Y1.61%
Sales Q2Q%0.68%

3.2 Future

BAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.10% yearly.
Based on estimates for the next years, BAC will show a small growth in Revenue. The Revenue will grow by 2.75% on average per year.
EPS Next Y-4.4%
EPS Next 2Y4.12%
EPS Next 3Y7.91%
EPS Next 5Y4.1%
Revenue Next Year1.3%
Revenue Next 2Y3.13%
Revenue Next 3Y3.95%
Revenue Next 5Y2.75%

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 decreasing.
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.

2

4. Valuation

4.1 Price/Earnings Ratio

BAC is valuated correctly with a Price/Earnings ratio of 14.32.
BAC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.40, BAC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.25, the valuation of BAC can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as BAC.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.67, BAC is valued a bit cheaper.
Industry RankSector Rank
PE 14.32
Fwd PE 12.25

4.2 Price Multiples

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

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.66
EPS Next 2Y4.12%
EPS Next 3Y7.91%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.35%, BAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, BAC is paying slightly less dividend.
BAC's Dividend Yield is comparable with the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 2.35%

5.2 History

The dividend of BAC is nicely growing with an annual growth rate of 10.60%!
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

43.12% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP43.12%
EPS Next 2Y4.12%
EPS Next 3Y7.91%

BANK OF AMERICA CORP

NYSE:BAC (1/6/2025, 8:20:22 PM)

After market: 45.5519 +0.15 (+0.33%)

45.4

+0.59 (+1.32%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-15 2024-10-15/bmo
Earnings (Next)01-16 2025-01-16/amc
Inst Owners60.7%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change-0.33%
Market Cap348.35B
Analysts78.57
Price Target49.7 (9.47%)
Short Float %1.09%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 2.35%
Dividend Growth(5Y)10.6%
DP43.12%
Div Incr Years11
Div Non Decr Years15
Ex-DateN/A
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)2.87%
PT rev (3m)6.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.23%
Valuation
Industry RankSector Rank
PE 14.32
Fwd PE 12.25
P/S 3.54
P/FCF N/A
P/OCF N/A
P/B 1.17
P/tB 1.54
EV/EBITDA N/A
EPS(TTM)3.17
EY6.98%
EPS(NY)3.71
Fwd EY8.17%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)-0.26
OCFYN/A
SpS12.84
BVpS38.64
TBVpS29.4
PEG (NY)N/A
PEG (5Y)2.66
Profitability
Industry RankSector 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)0.87%
ROA(5y)0.85%
ROE(3y)9.79%
ROE(5y)9.04%
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 3Y9.41%
PM growth 5Y-2.97%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
Industry RankSector 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-Score3
WACC11.63%
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)-11.2%
EPS 3Y22.95%
EPS 5Y5.39%
EPS Q2Q%-10%
EPS Next Y-4.4%
EPS Next 2Y4.12%
EPS Next 3Y7.91%
EPS Next 5Y4.1%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y4.85%
Revenue growth 5Y1.61%
Sales Q2Q%0.68%
Revenue Next Year1.3%
Revenue Next 2Y3.13%
Revenue Next 3Y3.95%
Revenue Next 5Y2.75%
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-127.23%
FCF growth 3Y5.79%
FCF growth 5Y2.62%
OCF growth 1Y-127.23%
OCF growth 3Y5.79%
OCF growth 5Y2.62%