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BAC

Bank of AmericaNYSE:BAC Stock Report

Last Price

US$44.92

Market Cap

US$362.9b

7D

-6.2%

1Y

42.4%

Updated

23 Jan, 2022

Data

Company Financials +
BAC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

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

JPMorgan Chase

NYSE:JPM

US$427.1b

Wells Fargo

NYSE:WFC

US$208.6b

Citigroup

NYSE:C

US$125.6b

U.S. Bancorp

NYSE:USB

US$81.8b

Price History & Performance

Summary of all time highs, changes and price drops for Bank of America
Historical stock prices
Current Share PriceUS$44.92
52 Week HighUS$50.08
52 Week LowUS$29.57
Beta1.49
1 Month Change1.13%
3 Month Change-5.45%
1 Year Change42.38%
3 Year Change51.86%
5 Year Change92.30%
Change since IPO285.37%

Recent News & Updates

Jan 19

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.

Jan 19
Cyclical Tailwinds are Fueling Bank of America's (NYSE:BAC) Rise

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.

Jan 10

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.

Dec 30

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.

Shareholder Returns

BACUS BanksUS Market
7D-6.2%-8.1%-6.1%
1Y42.4%24.9%4.2%

Return vs Industry: BAC exceeded the US Banks industry which returned 24.9% over the past year.

Return vs Market: BAC exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is BAC's price volatile compared to industry and market?
BAC volatility
BAC Average Weekly Movement3.7%
Banks Industry Average Movement3.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1998208,248Brian Moynihanhttps://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 CapUS$362.86b
Earnings (TTM)US$30.56b
Revenue (TTM)US$93.71b

11.9x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAC income statement (TTM)
RevenueUS$93.71b
Cost of RevenueUS$0
Gross ProfitUS$93.71b
ExpensesUS$63.15b
EarningsUS$30.56b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Apr 18, 2022

Earnings per share (EPS)3.78
Gross Margin100.00%
Net Profit Margin32.61%
Debt/Equity Ratio197.7%

How did BAC perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAC ($44.92) is trading below our estimate of fair value ($58.32)

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


Price To Earnings Ratio

PE vs Industry: BAC is poor value based on its PE Ratio (11.9x) compared to the US Banks industry average (10.8x).

PE vs Market: BAC is good value based on its PE Ratio (11.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: BAC is poor value based on its PEG Ratio (7.4x)


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).


Future Growth

How is Bank of America forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAC's forecast earnings growth (1.6% per year) is below the savings rate (2%).

Earnings vs Market: BAC's earnings (1.6% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: BAC's revenue (4% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: BAC's revenue (4% 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 (12.3%).


Past Performance

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

7.3%

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 43.5%.


Return on Equity

High ROE: BAC's Return on Equity (11.8%) 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 (11.7x) is moderate.

Allowance for Bad Loans: BAC has a sufficient allowance for bad loans (255%).

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%).


Dividend

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

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAC's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: BAC's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 (21.7%), 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 (27% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Brian Moynihan (62 yo)

12yrs

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 ($USD25.94M) is above average for companies of similar size in the US market ($USD11.47M).

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 considered experienced (2 years average tenure).


Board Members

Experienced Board: BAC's board of directors are considered experienced (9.4 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 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
  • Implied Market Cap: US$362.856b
  • Shares outstanding: 8.08b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:03
End of Day Share Price2022/01/21 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.