Bank of America
Market Cap
US$202.1b
Last Updated
2020/07/05 23:46 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
No risks detected for BAC from our risk checks.
Snowflake Analysis
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
Stable Share Price: BAC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.6%
BAC
0.8%
US Banks
4.0%
US Market
1 Year Return
-20.4%
BAC
-28.2%
US Banks
5.0%
US Market
Return vs Industry: BAC exceeded the US Banks industry which returned -28.2% over the past year.
Return vs Market: BAC underperformed the US Market which returned 4.9% over the past year.
Shareholder returns
| BAC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 0.8% | 4.0% |
| 30 Day | -17.1% | -16.5% | -1.1% |
| 90 Day | 8.9% | 7.2% | 21.1% |
| 1 Year | -18.4%-20.4% | -25.7%-28.2% | 7.2%5.0% |
| 3 Year | -0.06%-6.2% | -18.1%-24.7% | 36.0%27.1% |
| 5 Year | 52.8%39.5% | 8.8%-4.4% | 65.3%46.9% |
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
2 weeks ago | Simply Wall St
The Bank of America (NYSE:BAC) Share Price Has Gained 48% And Shareholders Are Hoping For More1 month ago | Simply Wall St
Is There Now An Opportunity In Bank of America Corporation (NYSE:BAC)?1 month ago | Simply Wall St
Are Insiders Selling Bank of America Corporation (NYSE:BAC) Stock?Valuation
Is Bank of America undervalued compared to its fair value and its price relative to the market?
9.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BAC ($23.29) is trading above our estimate of fair value ($18.89)
Significantly Below Fair Value: BAC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BAC is good value based on its PE Ratio (9.4x) compared to the Banks industry average (9.4x).
PE vs Market: BAC is good value based on its PE Ratio (9.4x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: BAC is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: BAC is overvalued based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Bank of America forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
20.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAC's forecast earnings growth (20.8% per year) is above the savings rate (2.2%).
Earnings vs Market: BAC's earnings (20.8% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BAC's revenue (3.2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: BAC's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BAC's Return on Equity is forecast to be low in 3 years time (8.4%).
Next Steps
Past Performance
How has Bank of America performed over the past 5 years?
18.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAC has high quality earnings.
Growing Profit Margin: BAC's current net profit margins (27.8%) are lower than last year (30.7%).
Past Earnings Growth Analysis
Earnings Trend: BAC's earnings have grown by 18.2% per year over the past 5 years.
Accelerating Growth: BAC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BAC had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Banks industry average (1.8%).
Return on Equity
High ROE: BAC's Return on Equity (9.1%) is considered low.
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
Financial Institutions Analysis
Asset Level: BAC's Assets to Equity ratio (9.9x) is low.
Allowance for Bad Loans: BAC has a sufficient allowance for bad loans (368%).
Low Risk Liabilities: 67% of BAC's liabilities are made up of primarily low risk sources of funding.
Loan Level: BAC has an appropriate level of Loans to Assets ratio (40%).
Low Risk Deposits: BAC's Loans to Deposits ratio (65%) is appropriate.
Level of Bad Loans: BAC has an appropriate level of bad loans (0.4%).
Next Steps
Dividend
What is Bank of America current dividend yield, its reliability and sustainability?
3.09%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BAC's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: BAC's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (4.5%).
Stability and Growth of Payments
Stable Dividend: BAC's dividends per share have been stable in the past 10 years.
Growing Dividend: BAC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.9%), BAC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BAC's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.9yrs
Average management tenure
CEO
Brian Moynihan (61yo)
10.5yrs
Tenure
US$26,039,213
Compensation
Mr. Brian T. Moynihan has been President, Chief Executive Officer and Director of Bank of America Corporation since January 01, 2010 and has been its Chairman since October 01, 2014. He serves as the Gener ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD26.04M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 10.5yrs | US$26.04m | 0.021% $41.7m | |
| Chief Financial Officer | 4.92yrs | US$12.60m | 0.0085% $17.1m | |
| COO & President of Global Banking and Markets | 8.83yrs | US$19.49m | 0.036% $72.7m | |
| President of Consumer & Small Business | 2.5yrs | US$11.75m | 0.0025% $5.1m | |
| Chief Risk Officer | 6.25yrs | US$12.43m | 0.010% $20.2m | |
| Chief Operations & Technology Officer | no data | no data | 0.0092% $18.5m | |
| Chief Accounting Officer | 5.33yrs | no data | 0.0022% $4.5m | |
| Head of Corporate & Investment Banking | 1.58yrs | no data | no data | |
| Chief Administrative Officer | 4.92yrs | no data | 0.0055% $11.1m | |
| Senior Vice President of Investor Relations | 4.5yrs | no data | no data |
4.9yrs
Average Tenure
60yo
Average Age
Experienced Management: BAC's management team is considered experienced (4.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 10.5yrs | US$26.04m | 0.021% $41.7m | |
| Lead Independent Director | 5.75yrs | US$503.00k | 0.0016% $3.3m | |
| Independent Director | 7.5yrs | US$350.00k | 0.0010% $2.1m | |
| Independent Director | 7.92yrs | US$350.00k | 0.00074% $1.5m | |
| Independent Director | 16.25yrs | US$380.00k | 0.000020% $40.4k | |
| Independent Director | 11.08yrs | US$491.53k | 0.0021% $4.2m | |
| Independent Director | 7.92yrs | US$350.00k | 0.00022% $444.5k | |
| Independent Director | 14.25yrs | US$398.00k | 0.000030% $60.6k | |
| Independent Director | 14.5yrs | US$390.00k | 0.0011% $2.2m | |
| Independent Director | 7.92yrs | US$400.00k | 0.0011% $2.3m |
7.9yrs
Average Tenure
71yo
Average Age
Experienced Board: BAC's board of directors are considered experienced (7.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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
- Exchange: NYSE
- Founded: 1784
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: US$202.055b
- Shares outstanding: 8.68b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BAC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| 0Q16 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| NCB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| BAC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1969 |
| NCB | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1969 |
| BAC | BVC (Bolsa de Valores de Colombia) | Yes | Common Stock | CO | COP | Jan 1969 |
| BAC | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1969 |
| US_BAC_ | KAS (Kazakhstan Stock Exchange) | Yes | Common Stock | KZ | KZT | Jan 1969 |
| BAC | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1969 |
| BAC | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1969 |
| BAC | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Jan 1969 |
| BOAC | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1969 |
| BML.PRG | NYSE (New York Stock Exchange) | PFD1/1200 SR1 | US | USD | Oct 2004 | |
| BML.PRH | NYSE (New York Stock Exchange) | PFD 1/1200SER2 | US | USD | Mar 2005 | |
| BAC.PRE | NYSE (New York Stock Exchange) | PFD PER1/1000E | US | USD | Oct 2006 | |
| BML.PRL | NYSE (New York Stock Exchange) | PFD 1/1200SER5 | US | USD | Mar 2007 | |
| BA.C | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP 1/2 COM(USD) | AR | ARS | Aug 2007 | |
| BAC.PRJC | NYSE (New York Stock Exchange) | DP1/1000 7.25% J | US | USD | Nov 2007 | |
| BAC.PRL | NYSE (New York Stock Exchange) | 7.25%CNV PFD L | US | USD | Jan 2008 | |
| BOAC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR REPR 1 COM STK | BR | BRL | Jan 2012 | |
| NCB2 | OTCPK (Pink Sheets LLC) | 5.2%-FRN SUB PERP USD 'U' | US | USD | May 2013 | |
| NCB2 | DB (Deutsche Boerse AG) | 5.2%-FRN SUB PERP USD 'U' | DE | USD | May 2013 | |
| BAC.PRC | NYSE (New York Stock Exchange) | PFD CUM SER C | US | USD | Jan 2016 | |
| BACM.P | NYSE (New York Stock Exchange) | DEP SHS PFD EE | US | USD | Apr 2016 | |
| BAC.PRB | NYSE (New York Stock Exchange) | 6% DEP RP PFD GG | US | USD | May 2018 | |
| BAC.PRK | NYSE (New York Stock Exchange) | DEP SHS PFD HH | US | USD | Jul 2018 | |
| BAC.PRM | NYSE (New York Stock Exchange) | 5.375 DP PFD KK | US | USD | Jun 2019 | |
| BAC.PRN | NYSE (New York Stock Exchange) | 5% DEP RP PFD LL | US | USD | Sep 2019 | |
| A28ST4 | DB (Deutsche Boerse AG) | 4.3%-FRN PERP USD 'MM' | DE | USD | Jan 2020 |
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 corporations, and governments worldwide. It operates in Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets segments. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions, as well as customized solutions, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, fixed-income, and mortgage-related products. As of May 7, 2020, it served approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers; approximately 16,900 ATMs; and digital banking platforms with approximately 39 million active users. Bank of America Corporation was founded in 1784 and is headquartered in Charlotte, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:46 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.