Bank of America Corporation

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BAC : NYSE : Financial
$15.65 up 0.49 | 3.23%
Today's Range: 15.17 - 15.73
Avg. Daily Volume: 82,904,200
09/30/16 - 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 ($mil)22853.024600.0
EBITDA ($mil)10213.011759.0
EBIT ($mil)9651.011156.0
Net Income ($mil)4232.05134.0


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 Margin84.9986.08
EBITDA Margin44.6847.8
Operating Margin42.2345.35
Sales Turnover0.040.04
Return on Assets0.660.51
Return on Equity4.863.88
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
EPS0.360.43
Book value / share26.1424.03
Institutional Own % n/a n/a
Avg Daily Volume9.0868512E78.9362048E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 13.21 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 0.60 indicates a significant discount versus the S&P 500 average of 2.82 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. 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 13.00 Peers 13.21   BAC 2.42 Peers 9.17

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.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BAC 10.06 Peers 12.44   BAC NM Peers 4.15

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 0.60 Peers 1.07   BAC 34.83 Peers -8.47

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 1.77 Peers 2.29   BAC -3.44 Peers 1.69

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 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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