Bank of America Corporation

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BAC : NYSE : Financial
$14.63 up 0.10 | 0.69%
Today's Range: 14.45 - 14.70
Avg. Daily Volume: 92,349,600
07/27/16 - 4:00 PM ET

Financial Analysis


BANK OF AMERICA CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 6.12% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)22853.024761.0
EBITDA ($mil)10213.011920.0
EBIT ($mil)10213.011317.0
Net Income ($mil)4232.05320.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)392502.0371413.0
Total Assets ($mil)2186609.02149034.0
Total Debt ($mil)440730.0496341.0
Equity ($mil)267069.0251659.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin84.9986.17
EBITDA Margin44.6848.14
Operating Margin44.6945.7
Sales Turnover0.040.04
Return on Assets0.640.52
Return on Equity4.693.96
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.620.66
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)10216.7810471.84
Div / share0.050.05
EPS0.360.45
Book value / share26.1424.03
Institutional Own % n/a n/a
Avg Daily Volume9.3681536E71.30595328E8

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 11.99 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 0.55 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.07. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BAC 12.30 Peers 11.99   BAC NA Peers 4.80

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

BAC is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BAC 9.45 Peers 12.08   BAC NM Peers 2.92

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BAC is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BAC's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BAC 0.55 Peers 1.07   BAC 27.47 Peers 0.00

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BAC is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

BAC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BAC 1.63 Peers 2.36   BAC -4.09 Peers -0.10

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BAC is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BAC significantly trails its peers on the basis of sales growth

 

 

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