Bank of America (BAC)

Financials · $349B market cap · SEC CIK 0000070858

Next reports on Jan 15, 2027, before the open, with analysts expecting $1.13 in earnings per share.

52-week range $46.12 to $65.23. 22% below its 52-week high and 10% above its low.

The case for BAC

• Cheap for its growth: 10.9× earnings, where 10% a year of growth plus a 3.2% dividend would justify about 27×.
• 30% of revenue drops through to net profit.
• Pays a 3.2% dividend while you wait.
• Trades at 1.27× book value, close to what the balance sheet says it owns.

The case against

• The price trend is weak (27/100): −5.0% over a year, −20.8% over three months, 22% below its 52-week high.
• Weakest against its peers: return on equity of 11% is lower than 76% of Financials companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its one-year revenue change (+99%) is far out of line with its five-year trend (+5% a year). In the Financials sector that is usually interest income swinging with rates rather than growth, so only the five-year figure is used.
• Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
• Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.

The financials

The financials, five years deep

Pulled from Bank of America's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Bank of America says it does

Bank of America Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, “Bank of America,” “the Corporation,” “we,” “us” and “our” may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates. As part of our efforts to streamline the Corporation’s organizational structure and reduce complexity and costs, the Corporation has reduced and intends to continue to reduce the number of its corporate subsidiaries, including through intercompany mergers. Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and…

Risk factors BAC lists in its 10-K

• We may be adversely affected by the financial markets, fiscal, monetary, and regulatory policies, and economic conditions
• Increased market volatility and adverse changes in financial or capital market conditions may increase our market risk
• If asset values decline, we may incur losses and negative impacts, including to capital and liquidity positions and requirements
• If we are unable to access capital markets, we experience sustained net deposit outflows, or our borrowing costs increase, our liquidity and competitive position may be negatively affected
• Reduction in our credit ratings could limit our access to funding or the capital markets, increase borrowing costs or trigger additional collateral or funding requirements
• Bank of America Corporation is a holding company, is dependent on its subsidiaries for liquidity and may be restricted from transferring funds from subsidiaries
• Bank of America Corporation’s liquidity and financial condition, and the ability to pay dividends and obligations, could be adversely affected in the event of a resolution
• Economic or market disruptions and insufficient credit loss reserves may result in a higher provision for credit losses
• Our concentrations of credit risk could adversely affect our credit losses, results of operations and financial condition
• We may be adversely affected by weaknesses in the U.S. housing market
• Our derivatives businesses may expose us to unexpected risks, which may result in losses and adversely affect liquidity
• We are subject to numerous political, economic, market, reputational, operational, compliance, legal, regulatory and other risks in the jurisdictions in which we operate
• The Corporation and third parties with whom we interact and/or on whom we rely, are subject to cybersecurity incidents,
• Failure to satisfy our obligations as servicer for residential mortgage securitizations, loans owned by other entities and other related losses could adversely impact our reputation, servicing costs or results of operations
• Changes in the structure of and relationship among the GSEs could adversely impact our business
• Our risk management framework may not be effective in mitigating risk and reducing the potential for losses
• We are highly regulated and subject to evolving government legislation and regulations and certain settlements, orders and agreements with government authorities from time to time
• We are subject to significant financial and reputational harm from potential liability arising from lawsuits and regulatory and government action
• U.S. federal banking agencies may require increased capital and liquidity levels, which could adversely impact the Corporation
• Changes in accounting standards or assumptions in applying accounting policies could adversely affect us
• We may be adversely affected by changes in U.S. and non-U.S. tax laws and regulations
• Damage to our reputation could harm our businesses, including our competitive position and business prospects
• We face significant and increasing competition in the financial services industry
• Our inability to adapt our business strategies, products and services could harm our business
• We could suffer operational, reputational and financial harm if our models fail to properly anticipate and manage risk
• Failure to properly manage data may adversely affect our ability to manage compliance risk and business needs, and result in errors in our operations, reporting and decision-making, and compliance with LRRs
• Our operations, businesses and clients could be adversely affected by climate-related matters and impacts
• Our ability to attract, develop and retain qualified employees is critical to our success, business prospects and competitive position

Filings

Other Financials companies