NYSE:BAC

Stock Analysis Report

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Executive Summary

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. More Details

Rewards

PE ratio (12.2x) is below the US market (18.9x)

Earnings are forecast to grow 12.48% per year

Pays a reliable dividend of 2.9%

Risk Analysis

No risks detected for BAC from our risk checks.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

BAC

3.1%

US Banks

-0.8%

US Market


1 Year Return

-21.6%

BAC

-26.5%

US Banks

18.0%

US Market

Return vs Industry: BAC exceeded the US Banks industry which returned -28.7% over the past year.

Return vs Market: BAC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BACIndustryMarket
7 Day2.6%3.1%-0.8%
30 Day6.9%11.6%6.8%
90 Day2.1%3.1%8.9%
1 Year-19.6%-21.6%-23.8%-26.5%20.7%18.0%
3 Year-4.5%-10.5%-16.8%-23.7%41.5%32.1%
5 Year63.0%48.2%20.3%5.4%84.6%63.8%

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

Valuation

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

12.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAC ($24.87) is trading above our estimate of fair value ($19.52)

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 (12.2x) compared to the US Banks industry average (10.1x).

PE vs Market: BAC is good value based on its PE Ratio (12.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BAC is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BAC's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAC's forecast earnings growth (12.5% per year) is above the savings rate (2.2%).

Earnings vs Market: BAC's earnings (12.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: BAC's revenue (3.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: BAC's revenue (3.5% 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 (7.8%).


Next Steps

Past Performance

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

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAC has high quality earnings.

Growing Profit Margin: BAC's current net profit margins (24.5%) are lower than last year (30.5%).


Past Earnings Growth Analysis

Earnings Trend: BAC's earnings have grown by 10.9% 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 (-31.5%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: BAC's Return on Equity (7.2%) is considered low.


Next Steps

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 (10.2x) is moderate.

Allowance for Bad Loans: BAC has a sufficient allowance for bad loans (413%).

Low Risk Liabilities: 69% 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 (34%).

Low Risk Deposits: BAC's Loans to Deposits ratio (55%) is appropriate.

Level of Bad Loans: BAC has an appropriate level of bad loans (0.5%).


Next Steps

Dividend

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

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAC's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: BAC's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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 (35.3%), 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 (28.4% 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?

5.2yrs

Average management tenure


CEO

Brian Moynihan (61 yo)

10.75yrs

Tenure

US$26,039,213

Compensation

Mr. Brian T. 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 serves as the Gener ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD26.04M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Moynihan
Chairman10.75yrsUS$26.04m0.021%
$ 44.6m
Paul Donofrio
Chief Financial Officer5.17yrsUS$12.60m0.0085%
$ 18.3m
Thomas Montag
COO & President of Global Banking and Markets9.08yrsUS$19.49m0.036%
$ 77.7m
Dean Athanasia
President of Consumer & Small Business2.75yrsUS$11.75m0.0025%
$ 5.4m
Geoffrey Greener
Chief Risk Officer6.5yrsUS$12.43m0.010%
$ 21.6m
Catherine Bessant
Chief Operations & Technology Officerno datano data0.0092%
$ 19.7m
Rudolf Bless
Chief Accounting Officer5.58yrsno data0.0022%
$ 4.8m
Matthew Koder
President of Global Corporate & Investment Banking1.83yrsno datano data
Andrea Smith
Chief Administrative Officer5.17yrsno data0.0055%
$ 11.9m
E. McEntire
Senior Vice President of Investor Relations4.75yrsno datano data
David Leitch
Global General Counsel4.75yrsno data0.0012%
$ 2.5m
Meredith Verdone
Chief Marketing Officer3.42yrsno datano data

5.2yrs

Average Tenure

59.5yo

Average Age

Experienced Management: BAC's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Moynihan
Chairman10.75yrsUS$26.04m0.021%
$ 44.6m
Jack Bovender
Lead Independent Director6yrsUS$503.00k0.0016%
$ 3.5m
Arnold Donald
Independent Director7.75yrsUS$350.00k0.0010%
$ 2.2m
R. Yost
Independent Director8.17yrsUS$350.00k0.00074%
$ 1.6m
Lionel Nowell
Independent Director7.75yrsUS$384.70k0.000050%
$ 107.7k
Thomas May
Independent Director16.5yrsUS$380.00k0.000020%
$ 43.1k
Susan Bies
Independent Director11.33yrsUS$491.53k0.0021%
$ 4.5m
Linda Hudson
Independent Director8.17yrsUS$350.00k0.00023%
$ 495.4k
Monica Lozano
Independent Director14.5yrsUS$398.00k0.000030%
$ 64.6k
Frank Bramble
Independent Director14.75yrsUS$390.00k0.0011%
$ 2.3m
Clayton Rose
Independent Director2yrsUS$368.90k0.00029%
$ 624.7k
Sharon Allen
Independent Director8.17yrsUS$400.00k0.0011%
$ 2.5m

8.2yrs

Average Tenure

69yo

Average Age

Experienced Board: BAC's board of directors are considered experienced (8.2 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.


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: 1784
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$215.412b
  • Shares outstanding: 8.66b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BACNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
0Q16LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
NCBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
BAC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
NCBXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1969
BACBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1969
BACSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1969
US_BAC_KAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTJan 1969
BACSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1969
BACETLX (Eurotlx)YesCommon StockITEURJan 1969
BACBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1969
BOACWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
BML.PRGNYSE (New York Stock Exchange)PFD1/1200 SR1USUSDOct 2004
BML.PRHNYSE (New York Stock Exchange)PFD 1/1200SER2USUSDMar 2005
BAC.PRENYSE (New York Stock Exchange)PFD PER1/1000EUSUSDOct 2006
BML.PRLNYSE (New York Stock Exchange)PFD 1/1200SER5USUSDMar 2007
BA.CBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/2 COM(USD)ARARSAug 2007
BAC.PRJCNYSE (New York Stock Exchange)DP1/1000 7.25% JUSUSDNov 2007
BAC.PRLNYSE (New York Stock Exchange)7.25%CNV PFD LUSUSDJan 2008
BOAC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1 COM STKBRBRLJan 2012
NCB2DB (Deutsche Boerse AG)5.2%-FRN SUB PERP USD 'U'DEUSDMay 2013
BAC.PRCNYSE (New York Stock Exchange)PFD CUM SER CUSUSDJan 2016
BAC.PRANYSE (New York Stock Exchange)DEP SHS PFD EEUSUSDApr 2016
BAC.PRBNYSE (New York Stock Exchange)6 NCUM PFD SR GGUSUSDMay 2018
BAC.PRKNYSE (New York Stock Exchange)5.875 NCM PFD HHUSUSDJul 2018
BAC.PRMNYSE (New York Stock Exchange)5.375 DP PFD KKUSUSDJun 2019
BAC.PRNNYSE (New York Stock Exchange)5% NCUM PFD LLUSUSDSep 2019
A28ST4DB (Deutsche Boerse AG)4.3%-FRN PERP USD1000 'MM'DEUSDJan 2020

Biography

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 cor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:34
End of Day Share Price2020/10/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.