Bank of America
Market Cap
US$365.6b
Last Updated
2021/04/16 22:44 UTC
Data Sources
Company Financials +
Executive Summary
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: BAC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.1%
BAC
0.03%
US Banks
1.3%
US Market
1 Year Return
68.2%
BAC
70.3%
US Banks
53.9%
US Market
Return vs Industry: BAC underperformed the US Banks industry which returned 83% over the past year.
Return vs Market: BAC exceeded the US Market which returned 57.5% over the past year.
Shareholder returns
| BAC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | 0.03% | 1.3% |
| 30 Day | 3.2% | 0.7% | 3.3% |
| 90 Day | 18.6% | 16.6% | 8.9% |
| 1 Year | 72.4%68.2% | 76.0%70.3% | 56.6%53.9% |
| 3 Year | 38.5%29.4% | 26.0%15.1% | 64.4%53.6% |
| 5 Year | 186.2%159.1% | 97.2%72.0% | 120.4%95.7% |
Long-Term 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
3 days ago | Simply Wall St
Shareholders May Not Be So Generous With Bank of America Corporation's (NYSE:BAC) CEO Compensation And Here's Why3 weeks ago | Simply Wall St
What You Need To Know About Bank of America Corporation's (NYSE:BAC) Investor CompositionValuation
Is Bank of America undervalued compared to its fair value and its price relative to the market?
16.67x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BAC ($38.74) is trading above our estimate of fair value ($33.92)
Significantly Below Fair Value: BAC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BAC is poor value based on its PE Ratio (20.6x) compared to the US Banks industry average (13.3x).
PE vs Market: BAC is good value based on its PE Ratio (20.6x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: BAC is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: BAC is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.1x).
Future Growth
How is Bank of America forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
3.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAC's forecast earnings growth (11% per year) is above the savings rate (2%).
Earnings vs Market: BAC's earnings (11% per year) are forecast to grow slower than the US market (18.4% per year).
High Growth Earnings: BAC's earnings are forecast to grow, but not significantly.
Revenue vs Market: BAC's revenue (5.8% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: BAC's revenue (5.8% 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 (9.8%).
Past Performance
How has Bank of America performed over the past 5 years?
7.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAC has high quality earnings.
Growing Profit Margin: BAC's current net profit margins (22.2%) are lower than last year (30.4%).
Past Earnings Growth Analysis
Earnings Trend: BAC's earnings have grown by 8.1% 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 (-36.5%) over the past year, making it difficult to compare to the Banks industry average (1.5%).
Return on Equity
High ROE: BAC's Return on Equity (6.6%) is considered low.
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 (10.8x) is moderate.
Allowance for Bad Loans: BAC has a sufficient allowance for bad loans (291%).
Low Risk Liabilities: 70% 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 (30%).
Low Risk Deposits: BAC's Loans to Deposits ratio (47%) is appropriate.
Level of Bad Loans: BAC has an appropriate level of bad loans (0.6%).
Dividend
What is Bank of America current dividend yield, its reliability and sustainability?
1.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BAC's dividend (1.86%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: BAC's dividend (1.86%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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 (38.3%), 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 (30.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Brian Moynihan (61 yo)
11.25yrs
Tenure
US$25,940,571
Compensation
Mr. Brian Thomas Moynihan has been President, Chief Executive Officer and Director of Bank of America Corporation since January 01, 2010 and has been its Chairman since October 01, 2014. He served as the P...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD25.94M) is above average for companies of similar size in the US market ($USD11.02M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: BAC's management team is seasoned and experienced (5.7 years average tenure).
Board Members
Experienced Board: BAC's board of directors are considered experienced (8.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BAC insiders have only sold shares 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: 1998
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: US$365.592b
- Shares outstanding: 8.59b
- 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
Biography
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:44 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.