BANK OF AMERICA CORP (BAC)
US0605051046 - Common Stock
Overall BAC gets a fundamental rating of 2 out of 10. We evaluated BAC against 404 industry peers in the Banks industry. Both the profitability and financial health of BAC have multiple concerns. BAC has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years BAC has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: BAC reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of BAC (0.66%) is worse than 61.60% of its industry peers.
BAC has a Return On Equity of 7.40%. This is comparable to the rest of the industry: BAC outperforms 43.89% of its industry peers.
| Industry Rank | Sector 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 Rank | Sector 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
2. Health
2.1 Basic Checks
BAC does not have a ROIC to compare to the WACC, probably because it is not profitable.
BAC has less shares outstanding than it did 1 year ago.
BAC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BAC is higher compared to a year ago.
2.2 Solvency
BAC has a Debt/Equity ratio of 2.46. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BAC (2.46) is worse than 93.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.82%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
BAC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.20%.
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
The Earnings Per Share is expected to grow by 1.06% on average over the next years.
BAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.55% yearly.
EPS Next Y-3.99%
EPS Next 2Y3.9%
EPS Next 3Y7.53%
EPS Next 5Y1.06%
Revenue Next Year1.37%
Revenue Next 2Y2.95%
Revenue Next 3Y3.78%
Revenue Next 5Y2.55%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.77, BAC is valued correctly.
BAC's Price/Earnings ratio is in line with the industry average.
BAC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.68, BAC is valued correctly.
BAC's Price/Forward Earnings is on the same level as the industry average.
BAC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.74
EPS Next 2Y3.9%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
BAC has a Yearly Dividend Yield of 2.27%. Purely for dividend investing, there may be better candidates out there.
BAC's Dividend Yield is slightly below the industry average, which is at 3.02.
BAC's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 Years10
Div Non Decr Years14
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.
BAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.12%
EPS Next 2Y3.9%
EPS Next 3Y7.53%
BANK OF AMERICA CORP
NYSE:BAC (11/18/2024, 3:27:09 PM)
46.83
+0.08 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap359.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 12.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 7.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 22.28% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.2%
EPS 3Y22.95%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y4.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y