BAC Stock Overview
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.
Bank of America Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$45.75|
|52 Week High||US$50.08|
|52 Week Low||US$29.57|
|1 Month Change||3.53%|
|3 Month Change||-3.83%|
|1 Year Change||44.00%|
|3 Year Change||57.33%|
|5 Year Change||95.18%|
|Change since IPO||292.49%|
Recent News & Updates
Bank of America: Buy Before The Fed Rate Hike
Bank of America reported solid earnings for Q4 2021, signaling the start of the strong earnings cycle in anticipation of a higher interest rate environment. BAC is one of the most asset-sensitive banks and is well positioned to grow its balance sheet in the following years. Warren Buffett and Charlie Munger have favored BAC over WFC, JPM, and GS for a reason, and both hold 14.6% and 39.6% of their total portfolio's assets in BAC, respectively. My fair value estimate using a five-year equally weighted dual valuation method stands at $57 and implies a 22% upside from current share price levels for the medium term.
Cyclical Tailwinds are Fueling Bank of America's (NYSE:BAC) Rise
Where some see the sunset, others see the dawn. IT is no secret that the banks had a tough time in the super-low interest rate environment. Yet, as the FED prepares to lift the rates, it seems that Bank of America Corporation (NYSE: BAC) might have a head start among its competitors – if we are to judge by the first earnings reports.
Bank of America: Do Not Fight The Fed
Do not fight the Fed. Interest rates are on the way up. BAC appears expensive on some valuation metrics. However, the tailwinds in the next couple of years more than justify its valuation. Mr. Market is underestimating its sensitivity to rising rates as well as loan growth, cost efficiency advantage and capital return capacity. I remain bullish.
Bank Of America: Don't Pay This High A Premium
Bank of America's consumer business is booming. Revenues and deposits are continuing to rise as the economy improves. Bank of America's P/TBV ratio is historically high.
|BAC||US Banks||US Market|
Return vs Industry: BAC exceeded the US Banks industry which returned 28.1% over the past year.
Return vs Market: BAC exceeded the US Market which returned 7.7% over the past year.
|BAC Average Weekly Movement||3.6%|
|Banks Industry Average Movement||3.8%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.4%|
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.
About the Company
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
|BAC fundamental statistics|
Is BAC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BAC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Apr 18, 2022
|Earnings per share (EPS)||3.78|
|Net Profit Margin||32.61%|
How did BAC perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Is Bank of America undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BAC ($45.75) is trading below our estimate of fair value ($55.4)
Significantly Below Fair Value: BAC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BAC is poor value based on its PE Ratio (12.1x) compared to the US Banks industry average (11.2x).
PE vs Market: BAC is good value based on its PE Ratio (12.1x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: BAC is poor value based on its PEG Ratio (11x)
Price to Book Ratio
PB vs Industry: BAC is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).
How is Bank of America forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAC's forecast earnings growth (1.1% per year) is below the savings rate (2%).
Earnings vs Market: BAC's earnings (1.1% per year) are forecast to grow slower than the US market (13.1% per year).
High Growth Earnings: BAC's earnings are forecast to grow, but not significantly.
Revenue vs Market: BAC's revenue (3.7% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: BAC's revenue (3.7% 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 (11.4%).
How has Bank of America performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAC has high quality earnings.
Growing Profit Margin: BAC's current net profit margins (32.6%) are higher than last year (22.2%).
Past Earnings Growth Analysis
Earnings Trend: BAC's earnings have grown by 7.3% per year over the past 5 years.
Accelerating Growth: BAC's earnings growth over the past year (85.5%) exceeds its 5-year average (7.3% per year).
Earnings vs Industry: BAC earnings growth over the past year (85.5%) exceeded the Banks industry 43.6%.
Return on Equity
High ROE: BAC's Return on Equity (11.8%) is considered low.
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
Financial Institutions Analysis
Asset Level: BAC's Assets to Equity ratio (11.7x) is moderate.
Allowance for Bad Loans: BAC has a sufficient allowance for bad loans (263%).
Low Risk Liabilities: 71% 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%).
What is Bank of America current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BAC's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: BAC's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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 low payout ratio (20.8%), 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 (28.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Moynihan (62 yo)
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 ($USD11.31M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Experienced Management: BAC's management team is considered experienced (2 years average tenure).
Experienced Board: BAC's board of directors are considered experienced (9.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Bank of America Corporation's employee growth, exchange listings and data sources
- Name: Bank of America Corporation
- Ticker: BAC
- Exchange: NYSE
- Founded: 1998
- Industry: Diversified Banks
- Sector: Banks
- Implied Market Cap: US$369.561b
- Shares outstanding: 8.08b
- Website: https://www.bankofamerica.com
Number of Employees
- Bank of America Corporation
- Bank of America Corporate Center
- 100 North Tryon Street
- North Carolina
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/20 23:49|
|End of Day Share Price||2022/01/20 00:00|
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.