NYSE:BAC.PRA

Stock Analysis Report

Executive Summary

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Bank of America's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

BAC.PRA

4.1%

US Banks

1.0%

US Market


1 Year Return

3.2%

BAC.PRA

7.2%

US Banks

8.0%

US Market

Return vs Industry: BAC.PRA underperformed the US Banks industry which returned 7.2% over the past year.

Return vs Market: BAC.PRA underperformed the US Market which returned 8% over the past year.


Shareholder returns

BAC.PRAIndustryMarket
7 Day-0.2%4.1%1.0%
30 Day-0.7%2.8%-0.07%
90 Day-1.9%2.9%-1.0%
1 Year9.4%3.2%10.3%7.2%10.4%8.0%
3 Year17.6%-1.0%53.9%43.3%46.2%36.7%
5 Yearn/a71.9%53.1%64.3%46.2%

Price Volatility Vs. Market

How volatile is Bank of America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bank of America undervalued compared to its fair value and its price relative to the market?

11.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAC.PRA ($26.12) is trading above our estimate of fair value ($23.9)

Significantly Below Fair Value: BAC.PRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAC.PRA is good value based on its PE Ratio (11.3x) compared to the Banks industry average (12.6x).

PE vs Market: BAC.PRA is good value based on its PE Ratio (11.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: BAC.PRA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BAC.PRA is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bank of America forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAC.PRA's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: BAC.PRA's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: BAC.PRA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BAC.PRA's revenue (0.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BAC.PRA's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAC.PRA's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Bank of America performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BAC.PRA's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: BAC.PRA's earnings growth over the past year (20.9%) is below its 5-year average (24.8% per year).

Earnings vs Industry: BAC.PRA earnings growth over the past year (20.9%) underperformed the Banks industry 30.1%.


Return on Equity

High ROE: BAC.PRA's Return on Equity (10.3%) is considered low.


Return on Assets

ROA vs Industry: BAC.PRA has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BAC.PRA's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bank of America's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BAC.PRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: BAC.PRA's debt is covered by short term assets (assets are 1.602710x debt).


Financial Institutions Analysis

Asset Level: BAC.PRA's level of assets compared to its equity is low.

Allowance for Bad Loans: BAC.PRA has a sufficient allowance for bad loans.

Low Risk Liabilities: BAC.PRA's liabilities are made up of primarily low risk sources of funding.

Loan Level: BAC.PRA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BAC.PRA's loans are broadly funded by customer deposits.

Level of Bad Loans: BAC.PRA has an appropriate level of bad loans (0.38%)


Next Steps

Dividend

What is Bank of America's current dividend yield, its reliability and sustainability?

2.32%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BAC.PRA's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BAC.PRA's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: BAC.PRA's dividends per share have been stable in the past 10 years.

Growing Dividend: BAC.PRA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), BAC.PRA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAC.PRA's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

What is the CEO of Bank of America's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Brian Moynihan (60yo)

9.8yrs

Tenure

US$22,754,510

Compensation

Mr. Brian T. Moynihan has been the Chief Executive Officer and Director of Bank of America Corporation since January 01, 2010 and has been its Chairman since October 01, 2014. Mr. Moynihan had been the Pre ...


CEO Compensation Analysis

Compensation vs. Market: Brian's total compensation ($USD22.75M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.6yrs

Average Tenure

59yo

Average Age

Experienced Management: BAC.PRA's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

70yo

Average Age

Experienced Board: BAC.PRA's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Brian Moynihan (60yo)

    Chairman & CEO

    • Tenure: 9.8yrs
    • Compensation: US$22.75m
  • Tom Montag (62yo)

    COO & President of Global Banking and Markets

    • Tenure: 8.1yrs
    • Compensation: US$18.79m
  • Paul Donofrio (59yo)

    Chief Financial Officer

    • Tenure: 4.2yrs
    • Compensation: US$11.93m
  • Rudolf Bless

    Chief Accounting Officer

    • Tenure: 4.6yrs
  • Cathy Bessant (59yo)

    Chief Operations & Technology Officer

    • Tenure: 0yrs
  • Thong Nguyen (60yo)

    Vice Chairman

    • Tenure: 13.9yrs
    • Compensation: US$10.15m
  • Dean Athanasia (52yo)

    President of Consumer & Small Business

    • Tenure: 1.8yrs
    • Compensation: US$10.15m
  • Andrea Smith (51yo)

    Chief Administrative Officer

    • Tenure: 4.3yrs
  • Geoffrey Greener (54yo)

    Chief Risk Officer

    • Tenure: 5.5yrs
    • Compensation: US$11.66m
  • Lee McEntire

    Senior Vice President of Investor Relations

    • Tenure: 3.8yrs

Board Members

  • Jack Bovender (74yo)

    Lead Independent Director

    • Tenure: 5yrs
    • Compensation: US$500.00k
  • Arnold Donald (64yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$350.00k
  • R. Yost (71yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$355.00k
  • Brian Moynihan (60yo)

    Chairman & CEO

    • Tenure: 9.8yrs
    • Compensation: US$22.75m
  • Tom May (72yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$380.00k
  • Susan Bies (72yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$484.27k
  • Linda Hudson (69yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$350.00k
  • Monica Lozano (62yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$380.00k
  • Frank Bramble (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$390.00k
  • Sharon Allen (67yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$390.00k

Company Information

Bank of America Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of America Corporation
  • Ticker: BAC.PRA
  • Exchange: NYSE
  • Founded: 1874
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$281.639b
  • Shares outstanding: 9.08b
  • Website: https://www.bankofamerica.com

Number of Employees


Location

  • Bank of America Corporation
  • Bank of America Corporate Center
  • 100 North Tryon Street
  • Charlotte
  • North Carolina
  • 28255
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BACSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1969
BACNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
NCBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
BAC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
BOACWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
BACBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1969
BACSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1969
NCBXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1969
US_BAC_KAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTJan 1969
0Q16LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
BACBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1969
BML.PRGNYSE (New York Stock Exchange)PFD1/1200 SR1USUSDOct 2004
BML.PRHNYSE (New York Stock Exchange)PFD 1/1200SER2USUSDMar 2005
BML.PRJNYSE (New York Stock Exchange)PFD DP1/1200 4USUSDNov 2005
BAC.PRENYSE (New York Stock Exchange)PFD PER1/1000EUSUSDOct 2006
BML.PRLNYSE (New York Stock Exchange)PFD 1/1200SER5USUSDMar 2007
BA.CBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/2 COM(USD)ARARSAug 2007
BAC.PRJCNYSE (New York Stock Exchange)DP1/1000 7.25% JUSUSDNov 2007
BAC.PRLNYSE (New York Stock Exchange)7.25%CNV PFD LUSUSDJan 2008
BOAC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1 COM STKBRBRLJan 2012
NCB2OTCPK (Pink Sheets LLC)5.2%-FRN SUB PERP USD 'U'USUSDMay 2013
NCB2DB (Deutsche Boerse AG)5.2%-FRN SUB PERP USD 'U'DEUSDMay 2013
NCB5DB (Deutsche Boerse AG)5.125%-FRN SUB PERP USDDEUSDJun 2014
BAC.PRYNYSE (New York Stock Exchange)DEP 1/1000 PFDUSUSDJan 2015
BAC.PRCNYSE (New York Stock Exchange)PFD CUM SER CUSUSDJan 2016
BAC.PRANYSE (New York Stock Exchange)DEP SHS PFD EEUSUSDApr 2016
BAC.PRBNYSE (New York Stock Exchange)6 NCUM PFD SR GGUSUSDMay 2018
BAC.PRKNYSE (New York Stock Exchange)5.875 NCM PFD HHUSUSDJul 2018
BAC.PRMNYSE (New York Stock Exchange)5.375 DEP PFD KKUSUSDJun 2019
BAC.PRNNYSE (New York Stock Exchange)5% DEP RP PFD LLUSUSDSep 2019

Biography

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large cor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:49
End of Day Share Price2019/10/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.