Bank of America (BAC) Stock Analysis
This is a peer-relative look at Bank of America (BAC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | BAC |
|---|---|
| Name | Bank of America Corporation |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Banks |
| GICS Industry | Banks |
| GICS Sub-Industry | Diversified Banks |
| Market Capitalization | 350.01 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | February 21, 1973 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| Total Return (1Y) | -0.24% | 31.23% |
| Total Return (3Y, Annualized) | 28.56% | 28.55% |
| Total Return (5Y, Annualized) | 3.74% | 10.07% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 21.76% | 24.40% |
| Beta (5Y) | 1.19 | 0.73 |
| Max Drawdown (5Y) | -46.64% | -43.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.21 | 1.04 |
| Sortino Ratio (1Y) | -0.28 | 1.58 |
Profitability
ROE (TTM)
Bank of America (BAC) posts ROE of 10.73%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
BAC
Banks industry group
10.73%
Group distribution
- Max
- 19.41%
- Q3
- 13.49%
- Median
- 11.36%
- BAC
- 10.73%
- Q1
- 9.48%
- Min
- 3.81%
Largest peers
- JPM
- 18.01%
- RY
- 16.21%
- HSBC
- 13.11%
- WFC
- 12.91%
- TD
- 12.83%
- BAC
- 10.73%
- MUFG
- 9.46%
Net Margin (TTM)
Bank of America (BAC) keeps 28.06% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
BAC
Banks industry group
28.06%
Group distribution
- Max
- 47.33%
- Q3
- 35.30%
- Median
- 31.10%
- BAC
- 28.06%
- Q1
- 27.27%
- Min
- 16.98%
Largest peers
- HSBC
- 37.80%
- JPM
- 34.59%
- RY
- 33.87%
- BAC
- 28.06%
- WFC
- 27.64%
- MUFG
- 27.45%
- TD
- 26.62%
Operating Margin (TTM)
operating margin is set aside for Bank of America (BAC) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| ROE (TTM) | 10.73% | 11.36% |
| ROA (TTM) | 0.94% | 1.24% |
| Net Margin (TTM) | 28.06% | 31.10% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Bank of America (BAC) grew revenue 6.84%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Bank of America (BAC) grew earnings per share 18.69%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 6.84% | 11.23% |
| Revenue Growth (3Y CAGR) | 6.00% | 6.24% |
| EPS Growth (YoY) | 18.69% | 16.06% |
| EPS Growth (3Y CAGR) | 6.10% | 2.73% |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Bank of America (BAC) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for Bank of America (BAC) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Bank of America (BAC) has dividend yield of 2.27%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
BAC
Banks industry group
2.27%
Group distribution
- Max
- 5.71%
- Q3
- 3.12%
- Median
- 2.29%
- BAC
- 2.27%
- Q1
- 0.97%
- Min
- 0.00%
Largest peers
- MUFG
- 401.68%
- TD
- 3.46%
- RY
- 3.26%
- BAC
- 2.27%
- WFC
- 2.23%
- JPM
- 1.83%
- HSBC
- 0.82%
Dividend Payout Ratio (TTM)
Bank of America (BAC) has payout ratio of 25.87%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
BAC
Banks industry group
25.87%
Group distribution
- Max
- 68.56%
- Q3
- 42.20%
- Median
- 29.17%
- BAC
- 25.87%
- Q1
- 19.91%
- Min
- 0.00%
Largest peers
- HSBC
- 53.57%
- TD
- 46.36%
- RY
- 41.49%
- MUFG
- 34.74%
- WFC
- 26.16%
- BAC
- 25.87%
- JPM
- 25.71%
Dividend Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.27% | 2.29% |
| Dividend Payout Ratio (TTM) | 25.87% | 29.17% |
Valuation
P/E Ratio (TTM)
Bank of America (BAC) trades at P/E ratio of 12.07, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
BAC
Banks industry group
12.07
Group distribution
- Max
- 18.61
- Q3
- 13.99
- Median
- 12.13
- BAC
- 12.07
- Q1
- 10.90
- Min
- 7.07
Largest peers
- TD
- 18.49
- RY
- 17.58
- JPM
- 13.91
- MUFG
- 13.77
- HSBC
- 12.95
- BAC
- 12.07
- WFC
- 11.62
P/S Ratio (TTM)
P/S ratio is not assessed for Bank of America (BAC) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.
P/B Ratio (MRQ)
Bank of America (BAC) trades at 1.29 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
BAC
Banks industry group
1.29
Group distribution
- Max
- 2.31
- Q3
- 1.59
- Median
- 1.33
- BAC
- 1.29
- Q1
- 1.10
- Min
- 0.41
Largest peers
- HSBC
- 7.20
- RY
- 2.92
- JPM
- 2.51
- TD
- 2.31
- MUFG
- 1.65
- WFC
- 1.56
- BAC
- 1.29
Valuation Metrics
| Metric | Current stock: BAC | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 12.07 | 12.13 |
| P/S Ratio (TTM) | -- | -- |
| P/B Ratio (MRQ) | 1.29 | 1.33 |
| Free Cash Flow Yield (TTM) | -- | -- |