Bank of America Corporation

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BAC : NYSE : Financial
$25.17 up 0.11 | 0.44%
Today's Range: 24.92 - 25.22
Avg. Daily Volume: 6.87434E7
09/21/17 - 12:49 PM ET

Financial Analysis


BANK OF AMERICA CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.46% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)25196.023742.0
EBITDA ($mil)12170.011101.0
EBIT ($mil)11639.010539.0
Net Income ($mil)5269.04783.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)386057.0392502.0
Total Assets ($mil)2254529.02186609.0
Total Debt ($mil)456824.0440730.0
Equity ($mil)270987.0267069.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin84.5885.54
EBITDA Margin48.346.75
Operating Margin46.1944.39
Sales Turnover0.040.04
Return on Assets0.870.73
Return on Equity6.665.45
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.630.62
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)9878.1210216.78
Div / share0.080.05
EPS0.460.4
Book value / share27.4326.14
Institutional Own % n/a n/a
Avg Daily Volume6.9089232E78.8127784E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.37 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 0.88 indicates a significant discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 1.27. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, BANK OF AMERICA CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BAC 14.43 Peers 22.37   BAC NM Peers 13.38

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BAC is trading at a significant discount to its peers.

 

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

BAC's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BAC 11.25 Peers 13.70   BAC 0.72 Peers 1.49

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BAC 0.88 Peers 1.27   BAC 25.37 Peers 8.20

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 2.48 Peers 2.75   BAC 3.95 Peers 5.64

Average. 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 valuation on par with 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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