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Bank of America

NYSE:BAC
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BAC
NYSE
$302B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

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. The last earnings update was 209 days ago. More info.


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BAC Share Price and Events
Price Volatility
BAC
Industry
5yr Volatility vs Market

BAC Value

 Is Bank of America undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of America to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of America.

NYSE:BAC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 16 analysts.
= Stable Book Value * Return on Equity
= $26.33 * 1108.2%
$2.92
Book Value of Equity per Share Weighted future Book Value estimates from 16 analysts. $26.33
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BAC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.614 (1 + (1- 21%) (165.63%))
1.15
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.15 * 7.05%)
11.06%

Discounted Cash Flow Calculation for NYSE:BAC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of America is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:BAC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (1108.2% – 11.06%) * $26.33)
$0.01
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.01 / (11.06% - 2.95%)
$0.08
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $26.33 + $0.08
$26.41
NYSE:BAC Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.41
Current discount Discount to share price of $31.00
= -1 x ($31.00 - $26.41) / $26.41
-17.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bank of America is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of America's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of America's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BAC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $1.94
NYSE:BAC Share Price ** NYSE (2018-09-19) in USD $31
United States of America Banks Industry PE Ratio Median Figure of 589 Publicly-Listed Banks Companies 18x
United States of America Market PE Ratio Median Figure of 3,050 Publicly-Listed Companies 20.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of America.

NYSE:BAC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BAC Share Price ÷ EPS (both in USD)

= 31 ÷ 1.94

15.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of America is good value based on earnings compared to the US Banks industry average.
  • Bank of America is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Bank of America's expected growth come at a high price?
Raw Data
NYSE:BAC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.96x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
7.6%per year
United States of America Banks Industry PEG Ratio Median Figure of 259 Publicly-Listed Banks Companies 1.18x
United States of America Market PEG Ratio Median Figure of 2,048 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NYSE:BAC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.96x ÷ 7.6%

2.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of America is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bank of America's assets?
Raw Data
NYSE:BAC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $24.07
NYSE:BAC Share Price * NYSE (2018-09-19) in USD $31
United States of America Banks Industry PB Ratio Median Figure of 602 Publicly-Listed Banks Companies 1.44x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 2.01x
NYSE:BAC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BAC Share Price ÷ Book Value per Share (both in USD)

= 31 ÷ 24.07

1.29x

* Primary Listing of Bank of America.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of America is good value based on assets compared to the US Banks industry average.
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Value checks
We assess Bank of America's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of America has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BAC Future Performance

 How is Bank of America expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of America expected to grow at an attractive rate?
  • Bank of America's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Bank of America's earnings growth is positive but not above the United States of America market average.
  • Bank of America's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BAC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BAC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 7.6%
NYSE:BAC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 4.5%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 16.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BAC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BAC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 99,595 29,384 8
2019-12-31 95,849 27,801 13
2018-12-31 91,887 25,976 13
NYSE:BAC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 84,513 47,579 19,994
2018-03-31 84,834 63,746 18,273
2017-12-31 83,956 10,403 16,618
2017-09-30 83,737 8,775 18,953
2017-06-30 83,517 -11,170 18,283
2017-03-31 81,724 -5,525 17,960
2016-12-31 80,104 18,361 16,140
2016-09-30 79,660 32,355 14,843
2016-06-30 79,061 57,625 14,569
2016-03-31 79,448 38,999 14,653
2015-12-31 79,804 28,397 14,427
2015-09-30 81,185 23,057 14,824

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of America's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
  • Bank of America's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BAC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Bank of America Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BAC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.31 3.71 3.10 11.00
2019-12-31 2.91 3.14 2.80 21.00
2018-12-31 2.54 2.62 2.47 22.00
NYSE:BAC Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 1.94
2018-03-31 1.78
2017-12-31 1.63
2017-09-30 1.87
2017-06-30 1.80
2017-03-31 1.76
2016-12-31 1.57
2016-09-30 1.44
2016-06-30 1.41
2016-03-31 1.41
2015-12-31 1.38
2015-09-30 1.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bank of America is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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Future performance checks
We assess Bank of America's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of America has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BAC Past Performance

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

  • Bank of America's last earnings update was 209 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of America's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of America has delivered over 20% year on year earnings growth in the past 5 years.
  • Bank of America's 1-year earnings growth is less than its 5-year average (9.4% vs 24.8%)
  • Bank of America's earnings growth has not exceeded the US Banks industry average in the past year (9.4% vs 12.2%).
Earnings and Revenue History
Bank of America's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of America Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BAC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 84,513.00 19,994.00 44,577.00
2018-03-31 84,834.00 18,273.00 44,784.00
2017-12-31 83,956.00 16,618.00 44,815.00
2017-09-30 83,737.00 18,953.00 44,659.00
2017-06-30 83,517.00 18,283.00 44,849.00
2017-03-31 81,724.00 17,960.00 44,505.00
2016-12-31 80,104.00 16,140.00 45,017.00
2016-09-30 79,660.00 14,843.00 45,459.00
2016-06-30 79,061.00 14,569.00 45,902.00
2016-03-31 79,448.00 14,653.00 46,174.00
2015-12-31 79,804.00 14,427.00 46,896.00
2015-09-30 81,185.00 14,824.00 47,163.00
2015-06-30 81,572.00 10,176.00 47,493.00
2015-03-31 80,564.00 7,018.00 48,300.00
2014-12-31 83,619.00 4,476.00 48,876.00
2014-09-30 84,618.00 4,234.00 49,539.00
2014-06-30 85,279.00 6,921.00 50,127.00
2014-03-31 85,459.00 8,456.00 50,540.00
2013-12-31 83,946.00 9,188.00 50,821.00
2013-09-30 79,090.00 7,264.00 51,404.00
2013-06-30 76,510.00 5,014.00 51,625.00
2013-03-31 75,189.00 3,541.00 52,004.00
2012-12-31 73,565.00 2,758.00 52,555.00
2012-09-30 79,463.00 3,975.00 52,917.00
2012-06-30 85,855.00 9,867.00 53,551.00
2012-03-31 75,641.00 -1,327.00 54,048.00
2011-12-31 78,844.00 84.00 53,842.00
2011-09-30 75,359.00 -3,066.00 53,810.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of America has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of America used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Bank of America has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bank of America's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of America has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BAC Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of America's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of America Company Filings, last reported 2 months ago.

NYSE:BAC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 264,216.00 499,788.00 532,582.00
2018-03-31 266,224.00 502,805.00 579,080.00
2017-12-31 267,146.00 493,944.00 522,180.00
2017-09-30 272,459.00 505,174.00 528,333.00
2017-06-30 270,987.00 508,834.00 524,303.00
2017-03-31 268,153.00 488,073.00 520,789.00
2016-12-31 266,195.00 464,986.00 472,487.00
2016-09-30 270,083.00 473,704.00 503,457.00
2016-06-30 267,069.00 488,291.00 520,250.00
2016-03-31 262,776.00 493,753.00 529,308.00
2015-12-31 256,176.00 477,603.00 478,320.00
2015-09-30 255,905.00 516,906.00 508,156.00
2015-06-30 251,659.00 539,924.00 494,719.00
2015-03-31 250,188.00 527,120.00 513,562.00
2014-12-31 243,476.00 522,497.00 471,769.00
2014-09-30 238,681.00 545,553.00 496,823.00
2014-06-30 237,411.00 559,420.00 524,395.00
2014-03-31 231,888.00 546,213.00 518,457.00
2013-12-31 232,685.00 531,186.00 469,861.00
2013-09-30 232,282.00 566,942.00 495,004.00
2013-06-30 231,032.00 590,091.00 489,897.00
2013-03-31 237,293.00 617,763.00 502,255.00
2012-12-31 236,956.00 645,591.00 514,821.00
2012-09-30 238,606.00 647,094.00 625,354.00
2012-06-30 235,975.00 678,296.00 636,847.00
2012-03-31 232,499.00 701,829.00 543,338.00
2011-12-31 230,101.00 682,347.00 519,501.00
2011-09-30 230,252.00 740,254.00 606,635.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of America has an acceptable proportion of non-loan assets held.
  • Bank of America's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of America are broadly funded by customer deposits.
  • Bank of America's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Bank of America has a sufficient allowance for bad loans.
  • Bank of America has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Bank of America's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of America has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BAC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.94%
Current annual income from Bank of America dividends. Estimated to be 2.17% next year.
If you bought $2,000 of Bank of America shares you are expected to receive $39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.26%).
  • Bank of America's dividend is below the markets top 25% of dividend payers in United States of America (3.25%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BAC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 463 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1974 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.7%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.3%
United States of America Top 25% Dividend Yield 75th Percentile 3.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BAC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.85 15.00
2019-12-31 0.68 22.00
2018-12-31 0.54 22.00
NYSE:BAC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-07-26 0.600 1.938
2018-04-26 0.480 1.619
2018-02-01 0.480 1.548
2017-10-25 0.480 1.656
2017-07-26 0.480 1.939
2017-07-18 0.300 1.248
2017-05-02 0.300 1.272
2017-04-18 0.300 1.285
2017-02-23 0.300 1.250
2017-01-13 0.300 1.287
2016-06-29 0.300 1.782
2016-01-21 0.200 1.473
2015-10-22 0.200 1.196
2015-07-23 0.200 1.219
2015-04-17 0.200 1.191
2015-02-10 0.200 1.257
2014-10-23 0.200 1.188
2014-08-06 0.200 1.228
2014-06-18 0.040 0.258
2014-05-01 0.200 1.324
2014-04-16 0.200 1.268
2014-02-11 0.040 0.238
2013-10-24 0.040 0.256
2013-07-24 0.040 0.278
2013-04-30 0.040 0.301
2013-01-23 0.040 0.335
2012-10-24 0.040 0.384
2012-07-11 0.040 0.482
2012-04-11 0.040 0.516
2012-01-11 0.040 0.492
2011-11-18 0.040 0.719
2011-08-22 0.040 0.607
2011-05-11 0.040 0.405
2011-01-26 0.040 0.295
2010-10-25 0.040 0.318
2010-07-28 0.040 0.304
2010-04-28 0.040 0.259
2010-01-27 0.040 0.238
2009-10-28 0.040 0.256
2009-07-21 0.040 0.245
2009-04-29 0.040 0.337
2009-01-16 0.040 0.673
2008-10-06 1.280 8.053
2008-09-22 2.560 7.477

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Bank of America's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4x coverage).
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Income/ dividend checks
We assess Bank of America's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of America afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of America has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BAC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Moynihan, image provided by Google.
Brian Moynihan
COMPENSATION $21,779,832
AGE 59
TENURE AS CEO 8.7 years
CEO Bio

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 President of Bank of America Corporation since January 01, 2010 until 2018. He serves as the General Partner of Bofa Merrill Lynch Preferred Capital Trust III, BofA Merrill Lynch Preferred Capital Trust IV, BofA Merrill Lynch Preferred Funding IV LP, BofA Merrill Lynch Preferred Funding III LP, BofA Merrill Preferred Capital Trust V and BofA Merrill Lynch Preferred Funding V LP. He served as the President of Global Banking & Wealth Management of Bank of America Corporation since January 2010. His direct support of diversity and inclusion initiatives across Bank of America is instrumental in creating an inclusive work environment. Mr. Moynihan served as the Chief Executive Officer of Merrill Lynch & Co., Inc. He served as the Director of Operation at Qualsec since September 2008. Mr. Moynihan served as the President at Global Wealth & Investment Management at Banc of America Investment Services, Inc. He served as the President at Fleet National Bank. Mr. Moynihan served as General Counsel at Bank of America Corporation from December 2008 to January 2010 and also as its Head of Consumer Banking from August 2009 to January 2010. He served as the President of Global Wealth and Investment Management at Bank of America Corporation from April 2004 to October 2007. Mr. Moynihan served as the President of Global Banking, Global Wealth & Investment Management at Bank of America Corporation since January 2009 and served as its President of Global Corporate and Investment Banking from October 2007 to October 2, 2008 and President of Private Equity & Global Operations from October 2, 2008 to January 2009. He managed Bank of America Corporation's third-party, nonproprietary and open architecture investment product platforms. Mr. Moynihan joined Bank of America in 2004. He served as an Executive Vice President of Wealth Management and Brokerage at FleetBoston Financial Corporation from 2000 to April 2004. Mr. Moynihan served as the Managing Director of Corporate Strategy and Development at FleetBoston Financial Corp. since 1994 and its Senior Vice President since 1998. He served as Fleet's eCatalyst from 2000 to 2001 and was responsible for driving the development and implementation of Fleet's Internet strategy. His responsibilities included oversight of all mergers & acquisitions, including the merger of Fleet Financial Group and BankBoston Corporation and Fleet's earlier acquisitions of Quick & Reilly, Columbia Management, Shawmut National Corporation, NatWest Bank's US Operations, Sanwa Business Credit and others. Mr. Moynihan joined Fleet Financial Group in April 1993 as the Deputy General Counsel. He serves as the Chairman and a Director of Boy's And Girl's Clubs of Boston Inc. He served as the Chairman of the Crossroads Rhode Island and Providence Haitian Project Inc. He served as the Chairman of the Board and Director at Merrill Lynch & Co., Inc. Mr. Moynihan serves as a Director of Bank of America N.A., United Way of Mass Bay (also known as United Way of Massachusetts Bay Inc.), YouthBuild Boston Inc., and FIA Card Services, N.A. In 2010, Mr. Moynihan was elected as a Trustee of the Corporation of Brown University. He served as a Director of BlackRock Inc. since February 2009. Mr. Moynihan has been chairing Bank of America's Global Diversity and Inclusion Council since 2007 and is an Executive Champion of its Disabilities Affinity Group for Bank of America associates. He holds BA from Brown University in 1981 and JD from University of Notre Dame Law School in 1984. Mr. Moynihan has a B.Ph. and an M.A. from Miami University.

CEO Compensation
  • Brian's compensation has increased by more than 20% in the past year.
  • Brian's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Bank of America management team in years:

4.4
Average Tenure
58.5
Average Age
  • The tenure for the Bank of America management team is about average.
Management Team

Brian Moynihan

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
59
TENURE
8.7 yrs

Paul Donofrio

TITLE
Chief Financial Officer
COMPENSATION
$12M
AGE
58
TENURE
3.1 yrs

Tom Montag

TITLE
Chief Operating Officer
COMPENSATION
$18M
AGE
61
TENURE
7 yrs

Terry Laughlin

TITLE
Vice Chairman and Head of Global Wealth & Investment Management
COMPENSATION
$11M
AGE
63
TENURE
8.1 yrs

Geoffrey Greener

TITLE
Chief Risk Officer
COMPENSATION
$11M
AGE
53
TENURE
4.4 yrs

Paul Mondragon

TITLE
Market President
TENURE
2.2 yrs

Karim Assef

TITLE
Chairman of Global Investment Banking
TENURE
1.7 yrs

Cathy Bessant

TITLE
Chief Operations & Technology Officer
AGE
58

Rudolf Bless

TITLE
Chief Accounting Officer
TENURE
3.5 yrs

Christian Meissner

TITLE
Head of Global Corporate and Investment Banking
TENURE
6.7 yrs
Board of Directors Tenure

Average tenure and age of the Bank of America board of directors in years:

6.1
Average Tenure
69
Average Age
  • The tenure for the Bank of America board of directors is about average.
Board of Directors

Brian Moynihan

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
59
TENURE
3.9 yrs

Tom May

TITLE
Director
COMPENSATION
$320K
AGE
71
TENURE
14.4 yrs

Frank Bramble

TITLE
Director
COMPENSATION
$340K
AGE
70
TENURE
12.7 yrs

Monica Lozano

TITLE
Director
COMPENSATION
$320K
AGE
61
TENURE
12.4 yrs

Sharon Allen

TITLE
Director
COMPENSATION
$340K
AGE
66
TENURE
6.1 yrs

Jack Bovender

TITLE
Lead Independent Director
COMPENSATION
$450K
AGE
73
TENURE
3.9 yrs

Susan Bies

TITLE
Director
COMPENSATION
$428K
AGE
71
TENURE
9.3 yrs

Linda Hudson

TITLE
Director
COMPENSATION
$300K
AGE
68
TENURE
6.1 yrs

R. Yost

TITLE
Director
COMPENSATION
$300K
AGE
70
TENURE
6.1 yrs

Arnold Donald

TITLE
Director
COMPENSATION
$300K
AGE
63
TENURE
5.7 yrs
Recent Insider Trading
  • Bank of America insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Bank of America's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of America has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BAC News

External News
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Simply Wall St News

Did Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?

Bank of America Corporation (NYSE:BAC) delivered an ROE of 7.44% over the past 12 months, which is relatively in-line with its industry average of 8.45% during the same period. … But what is more interesting is whether BAC can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of BAC's returns

Simply Wall St -

Is It Time To Buy Bank of America Corporation (NYSE:BAC) Based Off Its PE Ratio?

and want to better understand how you can grow your money by investing in Bank of America Corporation (NYSE:BAC). … Bank of America Corporation (NYSE:BAC) trades with a trailing P/E of 15.8x, which is lower than the industry average of 16.8x. … While BAC might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Is Bank of America Corporation (NYSE:BAC) A Smart Choice For Dividend Investors?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … In the past 10 years Bank of America Corporation (NYSE:BAC) has returned an average of 1.00% per year to investors in the form of dividend payouts. … Let's dig deeper into whether Bank of America should have a place in your portfolio.

Simply Wall St -

What's The Value Of Bank of America Corporation (NYSE:BAC)?

Understanding these differences is crucial when it comes to putting a value on the bank stock. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

Why These Fundamentals Make Bank of America Corporation’s (NYSE:BAC) More Attractive

As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like banks to vulnerabilities. … We should we cautious when it comes to investing in financial stocks due to the various risks large banks tend to face.

Simply Wall St -

Did Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?

and want to better understand how you can grow your money by investing in Bank of America Corporation (NYSE:BAC). … With an ROE of 7.44%, Bank of America Corporation (NYSE:BAC) returned in-line to its own industry which delivered 8.46% over the past year. … View out our latest analysis for Bank of America

Simply Wall St -

What Is The Future Prospect For Financials And Bank of America Corporation (NYSE:BAC)?

Check out our latest analysis for Bank of America What’s the catalyst for Bank of America's sector growth? … Bank of America lags the pack with its lower growth rate of 1.40% over the past year, which indicates the company will be growing at a slower pace than its banking peers. … In terms of returns, Bank of America generated 7.44% in the past year, which is 1.03% below the banking sector.

Simply Wall St -

How Bank of America Corporation's (NYSE:BAC) Earnings Growth Stacks Up Against The Industry

Today I will examine Bank of America Corporation's (NYSE:BAC) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of BAC's industry performed. … View our latest analysis for Bank of America How Did BAC's Recent Performance Stack Up Against Its Past? … For Bank of America, its most recent earnings (trailing twelve month) is US$18.27B, which, in comparison to last year’s level, Given that these figures are fairly nearsighted, I’ve calculated an annualized five-year value for Bank of America's net income, which stands at US$8.64B This means on average, Bank of America has been able to increase its earnings over the past few years.

Simply Wall St -

Bank of America Corporation (NYSE:BAC) Is Trading 8% Below Its True Value

Looking at line items such as book values, on top of the return and cost of equity, can be fitting for computing BAC’s value. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (11.58% – 9.92%) * $25.91 = $0.43 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.43 / (9.92% – 2.47%) = $5.79 Putting this all together, we get the value of BAC’s share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $25.91 + $5.79 = $31.7 Relative to the present share price of $29.3, BAC is currently fairly priced by the market.

Simply Wall St -

Did Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?

Check out our latest analysis for Bank of America Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Bank of America’s profit relative to its shareholders’ equity. … Bank of America’s cost of equity is 9.92%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:BAC Last Perf Apr 27th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

BAC Company Info

Map
Description

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 through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. 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. This segment provides its products and services through approximately 4,500 financial centers; 16,000 ATMs; call centers; and digital banking platforms. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, and trust and banking needs, 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, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.

Details
Name: Bank of America Corporation
BAC
Exchange: NYSE
Founded: 1874
$301,745,023,859
9,988,249,714
Website: http://www.bankofamerica.com
Address: Bank of America Corporation
Bank of America Corporate Center,
100 North Tryon Street,
Charlotte,
North Carolina, 28255,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BAC Common Stock New York Stock Exchange US USD 02. Jan 1969
DB NCB Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
XTRA NCB Common Stock XETRA Trading Platform DE EUR 02. Jan 1969
LSE 0Q16 Common Stock London Stock Exchange GB CHF 02. Jan 1969
SWX BAC Common Stock SIX Swiss Exchange CH CHF 02. Jan 1969
WBAG BOAC Common Stock Wiener Boerse AG AT EUR 02. Jan 1969
SNSE BAC Common Stock Santiago Stock Exchange CL USD 02. Jan 1969
BVC BAC Common Stock Bolsa de Valores de Colombia CO COP 02. Jan 1969
KAS US_BAC_ Common Stock Kazakhstan Stock Exchange KZ KZT 02. Jan 1969
BMV BAC * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BVL BAC Common Stock Bolsa de Valores de Lima PE USD 02. Jan 1969
NYSE BAC.PRE PFD PER1/1000E New York Stock Exchange US USD 31. Oct 2006
NYSE BAC PRJCL DP1/1000 7.25% J New York Stock Exchange US USD 16. Nov 2007
NYSE BAC.PRL 7.25%CNV PFD L New York Stock Exchange US USD 31. Jan 2008
NYSE BML.PRL PFD 1/1200SER5 New York Stock Exchange US USD 26. Mar 2007
NYSE BAC.PRW DEPSHS PFD SER W New York Stock Exchange US USD 05. Sep 2014
NYSE BAC.PRY DEP 1/1000 PFD New York Stock Exchange US USD 23. Jan 2015
NYSE BAC.PRC PFD CUM SER C New York Stock Exchange US USD 25. Jan 2016
NYSE BAC.PRA DEP SHS PFD EE New York Stock Exchange US USD 20. Apr 2016
NYSE BML.PRH PFD 1/1200SER2 New York Stock Exchange US USD 08. Mar 2005
NYSE BML.PRG PFD1/1200 SR1 New York Stock Exchange US USD 27. Oct 2004
OTCPK NCB2 5.2%-VAR SNR NTS PERP USD 'U' Pink Sheets LLC US USD 23. May 2013
BOVESPA BOAC34 BDR REPR 1 COM STK Bolsa de Valores de Sao Paulo BR BRL 03. Jan 2012
BASE BA.C CEDEAR EACH REP 1/2 COM(USD) Buenos Aires Stock Exchange AR ARS 29. Aug 2007
NYSE BML.PRJ PFD DP1/1200 4 New York Stock Exchange US USD 14. Nov 2005
NYSE BAC.PRK 5.875 NCM PFD HH New York Stock Exchange US USD 18. Jul 2018
Number of employees
Current staff
Staff numbers
208,000
Bank of America employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/19 21:01
End of day share price update: 2018/09/19 00:00
Last estimates confirmation: 2018/09/19
Last earnings update: 2018/06/30
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.