Bank of America Corporation [NYSE:BAC]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Bank of America Corporation [BAC], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give BAC an Outperform rating. Its stock price has been found in the range of 22.66 to 31.91. This is compared to its latest closing price of $30.03.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Bank of America Corporation [BAC] is sitting at 2.12. This is compared to 1 month ago, when its average rating was 1.94.
For the quarter ending in Mar-19 Bank of America Corporation [BAC] generated $23.16 billion in sales. That’s 0.62% lower than the average estimate of $23.3 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Mon 15 Jul (In 84 Days).
Fundamental Analysis of Bank of America Corporation [BAC]
Now let’s turn to look at profitability: with a current Operating Margin for Bank of America Corporation [BAC] sitting at +31.66, this company’s Net Margin is now 31.60%. These measurements indicate that Bank of America Corporation [BAC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 4.99, and its Return on Invested Capital has reached 5.70%. Its Return on Equity is 10.57, and its Return on Assets is 1.21. These metrics suggest that this Bank of America Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Bank of America Corporation [BAC] has generated a Total Debt to Total Equity ratio of 164.52. Similarly, its Total Debt to Total Capital is 62.20, while its Total Debt to Total Assets stands at 18.49. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 78.75, and its Long-Term Debt to Total Capital is 27.27. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 14.32. The Enterprise Value to Sales for this firm is now 4.75, and its Total Debt to Enterprise Value stands at 0.83. Bank of America Corporation [BAC] has a Price to Book Ratio of 0.98, a Price to Cash Flow Ratio of 6.53 and P/E Ratio of 11.16. These metrics all suggest that Bank of America Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Bank of America Corporation [BAC] earns $543,289 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.05.
Bank of America Corporation [BAC] has 9.64B shares outstanding, amounting to a total market cap of $289.46B. Its stock price has been found in the range of 22.66 to 31.91. At its current price, it has moved by -5.89% from its 52-week high, and it has moved 32.52% from its 52-week low.
This stock’s Beta value is currently 1.49, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 62.41. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Bank of America Corporation [BAC] a Reliable Buy?
Bank of America Corporation [BAC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.