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Bank of America Corp BAC

Morningstar Rating
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Stock XNYS Rating as of
$38.33 +0.58 (1.52%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Bank of America Earnings: Investment Banking, Asset Management Keep Fees Strong but Charge-Offs Rose

Suryansh Sharma

Wide-moat-rated Bank of America reported first-quarter adjusted earnings per share of $0.83, higher than the FactSet consensus estimate of $0.76 per share. The first-quarter results of banks were impacted by an FDIC special assessment charge of $0.7 billion for uninsured deposits of certain failed banks that reduced earnings by $0.07 per share. The first-quarter numbers, after adjusting for the FDIC charge, resulted in a return on tangible equity of 13.8%. We do not plan to materially change our $38 fair value estimate for Bank of America as we fully incorporate the first-quarter results.

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Price vs Fair Value

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BAC is trading at a 1% discount.
Price
$37.73
Fair Value
$49.00
Uncertainty
Medium
1-Star Price
$45.50
5-Star Price
$77.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Bank of America is poised to succeed on a nationwide scale, and there seems to be no structural reason it can't be one of the strongest bank franchises going forward.

Bears

If the economy ever falters and rates are cut, watch out for the downside. Further, Bank of America is hamstrung with a longer duration securities portfolio, which will take years to mature away.

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News

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Trading Information

Previous Close Price
$37.75
Day Range
$37.84–38.42
52-Week Range
$24.97–38.42
Bid/Ask
$38.32 / $38.33
Market Cap
$301.38 Bil
Volume/Avg
31.1 Mil / 40.9 Mil

Key Statistics

Price/Earnings (Normalized)
11.56
Price/Sales
2.93
Dividend Yield (Trailing)
2.49%
Dividend Yield (Forward)
2.54%
Total Yield
4.03%

Company Profile

Bank of America is one of the largest financial institutions in the United States, with more than $3.0 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
213,000
Website
https://www.bankofamerica.com

Competitors

Valuation

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Metric
BAC
C
WFC
Price/Earnings (Normalized)
 11.5611.9111.38
Price/Book Value
 1.060.621.27
Price/Sales
 2.931.502.60
Price/Cash Flow
 6.844.596.23
Price/Earnings
BAC
C
WFC

Financial Strength

Metric
BAC
C
WFC
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
No chart available

Profitability

Metric
BAC
C
WFC
Return on Assets (Normalized)
 0.99%0.41%1.04%
Return on Equity (Normalized)
 12.26%5.31%12.17%
Return on Invested Capital (Normalized)
 ———
Return on Assets
BAC
C
WFC
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Banks - Diversified Industry Comparables

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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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RY
Royal Bank of CanadaFfkjjplbBddw$137.1 Bil
MUFG
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C
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TD
The Toronto-Dominion BankMmsjffmqrZfd$103.3 Bil
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SAN
Banco Santander SA ADRJzzhgQwddk$77.8 Bil

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