Bank of America (BAC) AI Stock Analysis

• Market Cap: $403.61B
• Dividend Yield: 1.93%
• Average Volume (3M): 38.12M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.11
• Revenue Growth: 0.15%
• EPS Growth: 33.84%
• Country: US
• Employees: 213,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.06
• Shares Outstanding: 7,302,495,600
• 10 Day Avg. Volume: 47,379,861
• 30 Day Avg. Volume: 38,117,332
• PEG Ratio: 2.59
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -38.63
• Enterprise Value/Market Cap: 2.75
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: 10.96
• Enterprise Value/Ebitda: 32.07
• 1Y Price Target: $59.61
• Price Target Upside: 7.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 3.82
• Revenue Forecast (FY): $109.72B

• Rating: 72 Outperform
• Price Target: $60.00 ▲(8.56% Upside)

Bank of America's overall stock score reflects strong earnings performance and positive technical indicators. While financial performance shows stable profitability, challenges in cash flow and high leverage are concerns. The valuation is fair, and recent corporate events and earnings call sentiment are positive, supporting a favorable outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Leadership Appointments

New leadership appointments aim to enhance global capabilities and drive long-term growth, leveraging experienced leaders for strategic initiatives.

Net Interest Income

Record net interest income reflects strong lending and deposit growth, crucial for sustaining profitability in a rising interest rate environment.

Negative Factors

High Leverage

Significant leverage poses risks to financial flexibility, potentially impacting the bank's ability to respond to economic downturns or invest in growth.

Cash Flow Challenges

Declining cash flow generation can hinder the bank's ability to fund operations and investments, affecting long-term financial health.

Consumer Deposit Growth

Modest growth in consumer deposits may limit the bank's ability to fund lending activities, impacting revenue and profitability.

Bank of America Business Overview & Revenue Model

Company Description

Bank of America (BAC) is a leading multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It operates in various sectors, including consumer banking, corporate banking, investment banking, wealth management, and asset management. The bank provides a wide range of products and services, such as checking and savings accounts, credit and debit cards, mortgages, auto loans, investment solutions, and treasury services, catering to both individual consumers and businesses.

How the Company Makes Money

Bank of America generates revenue through several key streams. The primary source is net interest income, which comes from the difference between interest earned on loans and interest paid on deposits. Additionally, the bank earns significant income from non-interest sources, including fees for account services, asset management, investment banking, and trading activities. The bank also generates revenue through its wealth management division, which offers investment advice and financial planning services. Partnerships with financial technology firms enhance its digital offerings, while collaborations with other financial institutions and corporate clients contribute to its investment banking revenues. Overall, the diverse range of services provided allows Bank of America to capitalize on multiple revenue opportunities across different market segments.

Bank of America Financial Statement Overview

Summary

Bank of America demonstrates stable profitability with strong net profit and EBIT margins. However, challenges in revenue growth and cash flow generation, along with high leverage, pose risks. The company's effective use of equity to generate returns is a positive aspect.

Income Statement

Bank of America shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth, with a negative growth rate of -0.34%. However, the company maintains a solid net profit margin of 15.70% and an EBIT margin of 17.14%, reflecting stable profitability. The gross profit margin has improved over the years, indicating efficient cost management. Despite the recent revenue decline, the company has managed to sustain profitability, which is a positive sign.

Balance Sheet

The balance sheet of Bank of America reveals a high debt-to-equity ratio of 2.33 in the TTM, indicating significant leverage. However, the return on equity remains strong at 9.92%, showcasing effective use of equity to generate profits. The equity ratio stands at 8.94%, suggesting a moderate level of equity financing. While the high leverage poses a risk, the company's ability to maintain a solid ROE is commendable.

Cash Flow

The cash flow statement highlights challenges in cash generation, with a significant decline in free cash flow growth at -371.06% in the TTM. The operating cash flow to net income ratio is low at 0.024, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio remains at 1.0, suggesting that the company is able to cover its net income with free cash flow. The cash flow position needs improvement to ensure long-term financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.84B	192.43B	171.91B	115.05B	93.85B	93.75B
Gross Profit	101.44B	96.07B	94.19B	92.41B	93.71B	74.21B
EBITDA	34.66B	31.44B	30.40B	32.95B	35.87B	20.84B
Net Income	29.65B	27.13B	26.52B	27.53B	31.98B	17.89B
Balance Sheet
Total Assets	3.40T	3.26T	3.18T	3.05T	3.17T	2.82T
Cash, Cash Equivalents and Short-Term Investments	957.70B	642.92B	608.07B	458.25B	654.54B	621.50B
Total Debt	707.77B	658.43B	618.19B	498.55B	496.20B	452.58B
Total Liabilities	3.10T	2.97T	2.89T	2.78T	2.90T	2.55T
Stockholders Equity	304.15B	295.56B	291.65B	273.20B	270.07B	272.92B
Cash Flow
Free Cash Flow	61.47B	-8.80B	44.98B	-6.33B	-7.19B	37.99B
Operating Cash Flow	61.47B	-8.80B	44.98B	-6.33B	-7.19B	37.99B
Investing Cash Flow	-134.57B	-90.69B	-35.39B	-2.53B	-313.29B	-177.66B
Financing Cash Flow	151.02B	60.37B	93.34B	-106.04B	291.65B	355.82B

Bank of America Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAC, the sentiment is Positive. The current price of 55.27 is above the 20-day moving average (MA) of 53.94, above the 50-day MA of 52.76, and above the 200-day MA of 46.77, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 67.22 is Neutral, neither overbought nor oversold. The STOCH value of 66.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAC.

Bank of America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WFC	80 Outperform	$291.97B	15.32	11.56%	1.80%	-4.37%	26.41%
HSBC	78 Outperform	$270.23B	16.45	8.66%	4.17%	-9.54%	-22.46%
GS	73 Outperform	$267.98B	18.15	13.57%	1.56%	2.31%	44.49%
BAC	72 Outperform	$403.61B	15.06	9.87%	1.93%	0.15%	33.84%
JPM	72 Outperform	$863.53B	15.71	16.35%	1.79%	1.89%	12.32%
C	68 Neutral	$205.52B	16.15	6.88%	1.96%	-0.62%	105.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bank of America Corporate Events

Bank of America Appoints New Executive Officers

On November 20, 2025, Bank of America Corporation’s Board of Directors designated certain management members as executive officers, including Brian T. Moynihan as Chair and CEO. The appointments of Dean C. Athanasia and James P. DeMare as Co-Presidents were announced on September 12, 2025, with their roles effective December 31, 2025. Consequently, several members will no longer be executive officers, impacting the corporation’s management structure.

Bank of America Reports Strong Q3 2025 Financial Results

On October 15, 2025, Bank of America announced its financial results for the third quarter ended September 30, 2025. The company reported a net income of $8.5 billion, a 31% increase in diluted earnings per share to $1.06, and an 11% rise in revenue to $28.1 billion compared to the previous year. This growth was driven by higher net interest income, investment banking fees, and asset management fees. The company also highlighted its strong balance sheet, with average deposit balances increasing for the ninth consecutive quarter and a return of $7.4 billion to shareholders through dividends and share repurchases. The results demonstrate the strength of Bank of America’s diversified business model and its ability to leverage investments in technology and talent to improve operational efficiency.

Bank of America Announces New Leadership Appointments

On September 12, 2025, Bank of America announced significant leadership changes, appointing Dean C. Athanasia and James P. DeMare as Co-Presidents, and Alastair M. Borthwick as Executive Vice President, in addition to his role as Chief Financial Officer. These appointments aim to enhance the bank’s global capabilities and drive long-term growth by leveraging the extensive experience of the new leaders. Athanasia and DeMare will focus on strategic initiatives to increase market share and returns, while Borthwick will continue to strengthen the bank’s financial position. The leadership changes are part of the bank’s ongoing commitment to Responsible Growth, which has been a core strategy for over a decade.