Bank of America (NYSE:BAC) - Share price, News & Analysis

BAC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

BAC Stock Overview

Rewards

Trading at 48.4% below our estimate of its fair value

Earnings are forecast to grow 7.7% per year

Earnings grew by 44.4% over the past year

Pays a reliable dividend of 2.39%

Risk Analysis

High level of non-cash earnings

Bank of America Competitors

JPMorgan Chase

NYSE:JPM

US$349.8b

Wells Fargo

NYSE:WFC

US$161.6b

Citigroup

NYSE:C

US$92.5b

U.S. Bancorp

NYSE:USB

US$72.2b

Price History & Performance

Summary of all time highs, changes and price drops for Bank of America
Historical stock prices
Current Share Price	US$35.17
52 Week High	US$50.11
52 Week Low	US$34.26
Beta	1.4
1 Month Change	-6.39%
3 Month Change	-25.83%
1 Year Change	-16.97%
3 Year Change	23.84%
5 Year Change	52.58%
Change since IPO	201.73%

Shareholder Returns

	BAC	US Banks	US Market
7D	-6.1%	-4.3%	-2.5%
1Y	-17.0%	-19.6%	-10.4%

Return vs Industry: BAC exceeded the US Banks industry which returned -19.6% over the past year.

Return vs Market: BAC underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is BAC's price volatile compared to industry and market?
BAC volatility
BAC Average Weekly Movement	5.1%
Banks Industry Average Movement	3.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: BAC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BAC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1784	208,000	Brian Moynihan	https://www.bankofamerica.com

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. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit 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 company’s Global Wealth & Investment Management segment offers investment management, brokerage, banking, and trust and retirement products and services; and wealth management solutions, as well as customized solutions, including specialty asset management services.

Bank of America Fundamentals Summary

How do Bank of America's earnings and revenue compare to its market cap?
BAC fundamental statistics
Market Cap	US$283.36b
Earnings (TTM)	US$29.60b
Revenue (TTM)	US$92.22b

9.6x

P/E Ratio

1.2x

P/B Ratio

Is BAC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAC income statement (TTM)
Revenue	US$92.22b
Cost of Revenue	US$0
Gross Profit	US$92.22b
Other Expenses	US$62.63b
Earnings	US$29.60b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 18, 2022

Earnings per share (EPS)	3.67
Gross Margin	100.00%
Net Profit Margin	32.09%
Debt/Equity Ratio	215.4%

How did BAC perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

23%

Payout Ratio

Does BAC pay a reliable dividends?

See BAC dividend history and benchmarks

When do you need to buy BAC by to receive an upcoming dividend?
Bank of America dividend dates
Ex Dividend Date	Jun 02 2022
Dividend Pay Date	Jun 24 2022
Days until Ex dividend	16 days
Days until Dividend pay date	38 days

Does BAC pay a reliable dividends?

See BAC dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

48.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BAC ($35.17) is trading below our estimate of fair value ($68.12)

Significantly Below Fair Value: BAC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BAC is good value based on its PE Ratio (9.6x) compared to the US Banks industry average (9.7x).

PE vs Market: BAC is good value based on its PE Ratio (9.6x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: BAC is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: BAC's PB Ratio (1.2x) is in line with the US Banks industry average.

Future Growth

How is Bank of America forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAC's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).

Earnings vs Market: BAC's earnings (7.7% per year) are forecast to grow slower than the US market (12.6% per year).

High Growth Earnings: BAC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAC's revenue (6.3% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: BAC's revenue (6.3% 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 (12.2%).

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BAC has a high level of non-cash earnings.

Growing Profit Margin: BAC's current net profit margins (32.1%) are higher than last year (25.3%).

Past Earnings Growth Analysis

Earnings Trend: BAC's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: BAC's earnings growth over the past year (44.4%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: BAC earnings growth over the past year (44.4%) exceeded the Banks industry 20.9%.

Return on Equity

High ROE: BAC's Return on Equity (11.6%) 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 Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: BAC's Assets to Equity ratio (12.1x) is moderate.

Allowance for Bad Loans: BAC has a sufficient allowance for bad loans (243%).

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 (0.5%).

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.39%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BAC's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: BAC's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (4.05%).

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

Earnings Coverage: With its low payout ratio (22.9%), 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 (26.6% payout ratio).

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure

CEO

Brian Moynihan (62 yo)

12.33yrs

Tenure

US$23,729,169

Compensation

Mr. Brian Thomas Moynihan has been 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 President and Pr...

CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD23.73M) is above average for companies of similar size in the US market ($USD13.26M).

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 not considered experienced ( 0.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: BAC's board of directors are considered experienced (9.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31