Bank of America (BAC) AI Stock Analysis

• Market Cap: $383.23B
• Dividend Yield: 1.93%
• Average Volume (3M): 33.90M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.15
• Revenue Growth: 0.15%
• EPS Growth: 33.84%
• Country: US
• Employees: 213,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.98
• Shares Outstanding: 7,302,495,600
• 10 Day Avg. Volume: 31,048,588
• 30 Day Avg. Volume: 33,899,332
• 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: 2.21
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 8.34
• Enterprise Value/Ebitda: 24.42
• 1Y Price Target: $61.33
• Price Target Upside: 16.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 4.35
• Revenue Forecast (FY): $118.17B

• Rating: 65 Neutral
• Price Target: $59.00 ▲(12.19% Upside)

The score is primarily driven by solid profitability and ROE but weighed down by weak cash flow conversion, negative TTM revenue growth, and high leverage. The latest earnings call was a meaningful positive (NII and operating leverage guidance, stable credit, strong capital returns), while technicals are mixed with weaker near-term trend but supportive longer-term averages. Valuation is reasonable with a mid-teens P/E and ~2% dividend yield.

Positive Factors

Diversified Business Model & Scale

Bank of America’s broad franchise across consumer, corporate, markets and wealth provides durable revenue diversification and cross-sell opportunities. Scale lowers per-unit costs, supports product bundling, and cushions earnings across cycles, strengthening long-term resilience.

Strong Profitability and Efficiency

Sustained net margins and mid-to-high single digit ROE, combined with repeated operating leverage gains, indicate disciplined expense management and scalable revenue growth. This supports durable earnings power and the ability to invest while returning capital to shareholders.

Robust Loan Growth and NII Outlook

Consistent loan growth across consumer and commercial categories, plus explicit NII guidance, suggests a sustainable net interest income runway. Loan expansion and asset repricing support recurring core earnings and long-term net interest margin stability.

Negative Factors

Weak Cash Conversion

A steep decline in free cash flow growth and very low conversion of reported income to operating cash signals potential stress in cash generation. Over time this can constrain investment, dividend sustainability, and flexibility to absorb shocks or pursue strategic opportunities.

High Leverage & CET1 Pressure

Elevated leverage combined with a CET1 ratio trimmed by accounting reclassification tightens capital management. Persistent capital pressure can force more conservative lending, slower buybacks, or higher capital buffers, affecting growth and shareholder returns over months.

Deposit Mix & Rate Sensitivity

Modest deposit growth and balance migration to cash alternatives weaken low-cost funding. Combined with meaningful NII sensitivity to rate cuts, this increases earnings volatility under changing rate scenarios and complicates long-term net interest income planning.

Bank of America Business Overview & Revenue Model

Company Description

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The company's Global Wealth & Investment Management segment offers investment management, brokerage, banking, and trust and retirement products and services; and wealth management solutions, as well as customized solutions, including specialty asset management services. Its Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options and merchant services; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The company's Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. As of December 31, 2021, it served approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers; approximately 16,000 ATMs; and digital banking platforms with approximately 41 million active users. The company was founded in 1784 and is based in Charlotte, North Carolina.

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

Profitability is solid (TTM net margin 15.70%, EBIT margin 17.14%) and ROE is healthy (9.92%), but revenue growth is slightly negative (TTM -0.34%), leverage is high (debt-to-equity 2.33), and cash generation is a key weak spot with sharply negative free cash flow growth (TTM -371.06%) and a very low operating cash flow to net income ratio (0.024).

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: Neutral
• Last Price: 52.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAC, the sentiment is Neutral. The current price of 52.59 is below the 20-day moving average (MA) of 55.33, below the 50-day MA of 53.97, and above the 200-day MA of 47.93, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 12.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BAC.

Bank of America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	78 Outperform	$278.79B	17.26	8.66%	4.14%	-9.54%	-22.46%
GS	77 Outperform	$279.73B	18.17	13.57%	1.55%	2.31%	44.49%
JPM	75 Outperform	$838.10B	15.38	16.06%	1.79%	1.89%	12.32%
WFC	73 Outperform	$280.16B	14.26	11.85%	1.80%	-4.37%	26.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BAC	65 Neutral	$383.23B	13.77	10.23%	1.93%	0.15%	33.84%
C	60 Neutral	$201.13B	16.08	6.72%	1.94%	-0.62%	105.57%

Bank of America Corporate Events

Bank of America posts strong Q4 2025 earnings growth

On January 14, 2026, Bank of America reported that its fourth-quarter 2025 net income rose to $7.6 billion, with earnings per share up 18% year-on-year to $0.98, on revenue of $28.4 billion driven by higher net interest income, asset management fees and sales and trading revenue. Full-year 2025 net income reached $30.5 billion, with EPS up 19% from 2024, supported by 10 consecutive quarters of deposit growth to an average $2.01 trillion, 8% loan growth across all business segments, and improved efficiency, while the bank returned $8.4 billion to shareholders in the quarter and maintained a CET1 capital ratio of 11.4%, underscoring strong balance sheet resilience and sustained operating momentum across consumer, wealth, corporate banking and markets franchises.

The most recent analyst rating on (BAC) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

Bank of America Updates Accounting for Tax Equity Investments

Bank of America has retrospectively changed its accounting methods for tax-related equity investments in affordable housing and wind and solar renewable energy, moving affordable housing and eligible wind investments from the equity method to the proportional amortization method and spreading solar investment tax credits and related costs over the productive life of the facilities rather than recognizing them upfront. The revisions primarily reclassify amounts between noninterest income and income tax expense with an insignificant impact on annual net income, but they reduced retained earnings by $1.7 billion and would have lowered common equity tier 1 capital by an estimated $2.1 billion, equating to a 13-basis-point hit to the CET1 ratio as of September 30, 2025, and raised the third-quarter 2025 effective tax rate to about 20%, offering investors a presentation that better aligns reported results with the economic profile of these investments without requiring restatement of regulatory capital ratios.

The most recent analyst rating on (BAC) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

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.

The most recent analyst rating on (BAC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.