Bank of America Corporation

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BAC : NYSE : Financial
$22.16 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1.088324E8
12/06/16 - 4:00 PM ET

Financial Analysis


BANK OF AMERICA CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has increased by 5.54% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)24044.023488.0
EBITDA ($mil)11633.010830.0
EBIT ($mil)11069.010235.0
Net Income ($mil)4955.04619.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)370750.0383592.0
Total Assets ($mil)2195314.02153006.0
Total Debt ($mil)430220.0471044.0
Equity ($mil)270083.0255905.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin86.4585.94
EBITDA Margin48.3846.1
Operating Margin46.0443.58
Sales Turnover0.040.04
Return on Assets0.750.72
Return on Equity5.515.52
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.610.65
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)10123.8510427.31
Div / share0.080.05
EPS0.410.38
Book value / share26.6824.54
Institutional Own % n/a n/a
Avg Daily Volume1.0661396E89.0015512E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 16.78 for the Commercial Banks industry and a discount compared to the S&P 500 average of 25.22. Conducting a second comparison, its price-to-book ratio of 0.80 indicates a significant discount versus the S&P 500 average of 2.79 and a discount versus the industry average of 1.17. The price-to-sales ratio is above the S&P 500 average, but well 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 15.38 Peers 16.78   BAC 6.70 Peers 11.74

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 13.27 Peers 13.98   BAC 1.26 Peers 2.12

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 0.80 Peers 1.17   BAC 7.81 Peers -39.30

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 2.30 Peers 2.82   BAC 1.35 Peers 5.35

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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