Bank of America (BAC) AI Stock Analysis

• Market Cap: $356.41B
• Dividend Yield: 2.7%
• Average Volume (3M): 42.49M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.24
• Revenue Growth: 3.21%
• EPS Growth: 20.49%
• Country: US
• Employees: 213,000
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Diversified
• EPS (TTM): 0.89
• Shares Outstanding: 7,531,876,000
• 10 Day Avg. Volume: 50,337,794
• 30 Day Avg. Volume: 42,486,785
• PEG Ratio: 2.73
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 78.60
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 7.10
• Enterprise Value/Ebitda: 5.80
• 1Y Price Target: $52.24
• Price Target Upside: 10.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $51.00 ▲(7.41%Upside)

Bank of America holds a strong position driven by solid financial performance and positive earnings call outcomes, highlighting growth and innovation. However, leverage and cash flow volatility, alongside technical analysis insights, indicate areas for caution.

Positive Factors

Capital Returns

The company engaged in share repurchases totaling $5.3 billion, indicating a commitment to capital returns to shareholders.

Loan Growth

Gaining share with loan growth, with average loan growth of +3% quarter over quarter, or +7% year over year, which is double the industry average.

Trading Performance

FICC Trading fees of $3.2B were well above estimates, outperforming peers on average (+17% YoY vs. peers +15-16%).

Negative Factors

Net Interest Income

Possible slower recovery in net interest income and higher expense growth rate have shaken investor confidence.

Renewable Energy Investments

The House tax bill phases-out renewable energy investment and production tax credits, which if implemented as written would likely make incremental new renewable energy equity investments at BAC uneconomical.

Tax Rate Increase

The elimination of solar/wind incentives is likely to modestly increase the tax rate, which could hurt earnings per share over the next few years.

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 multiple streams. The primary sources include net interest income, which arises from the difference between the interest earned on loans and the interest paid on deposits, and non-interest income, which includes fees and commissions from banking services, wealth management, and investment banking. The company also benefits from trading activities and investment management fees. Strategic partnerships and collaborations with various financial and technology firms further enhance its service offerings and customer reach, contributing significantly to its earnings.

Bank of America Financial Statement Overview

Summary

Bank of America shows strong financial health with robust revenue and net profit margins. However, the balance sheet indicates significant leverage, and cash flow volatility remains a concern despite positive free cash flow.

Income Statement

Bank of America has demonstrated strong revenue growth with a TTM revenue increase from the previous year, indicating robust performance in its core banking operations. The net profit margin of 27.32% in the TTM is strong, reflecting efficient cost management and profitability. However, the declining EBITDA margin from 29.21% in 2023 to 22.64% in the TTM suggests potential cost pressures or changes in operating efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, increasing from 2.04 in 2023 to 1.17 in the TTM, indicating significant leverage. Despite this, the equity ratio remains stable at around 8.95%, suggesting a balanced approach to capital structure. The return on equity is strong at 9.42% in the TTM, showcasing effective utilization of shareholder funds, but the increasing leverage poses potential risks.

Cash Flow

The TTM cash flow indicates a positive turnaround with a free cash flow of $6.73 billion, contrasting with negative figures in prior years. The operating cash flow to net income ratio is 0.24, reflecting moderate cash conversion efficiency. However, the fluctuations in cash flow highlight potential volatility in cash management and investment activities.

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

Bank of America Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 47.48 is above the 20-day moving average (MA) of 47.25, above the 50-day MA of 45.31, and above the 200-day MA of 43.38, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 59.08 is Neutral, neither overbought nor oversold. The STOCH value of 70.82 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
HSBC	80 Outperform	$219.26B	11.60	10.83%	7.59%	-1.91%	-6.79%
WFC	78 Outperform	$262.42B	13.82	11.51%	1.99%	0.22%	19.89%
MUFG	76 Outperform	$149.91B	12.66	9.18%	2.64%	5.39%	20.82%
JPM	74 Outperform	$809.47B	14.94	16.13%	2.22%	4.04%	8.73%
C	73 Outperform	$174.54B	13.82	6.64%	2.42%	0.52%	89.25%
BAC	73 Outperform	$356.41B	13.87	9.46%	2.70%	3.21%	20.49%
Sector *	66 Neutral	₹884.36B	27.81	8.79%	1.22%	7.38%	-18.13%

Bank of America Corporate Events

Bank of America to Discuss Q2 Financial Results

On July 16, 2025, Bank of America will hold an investor conference call to discuss its second-quarter financial results, which showed a net income of $7.1 billion and a 4% increase in revenue to $26.5 billion compared to the previous year. The company reported growth in net interest income, sales and trading revenue, and asset management fees, despite a decline in investment banking fees. The bank’s balance sheet remains strong, with continued growth in deposits and loans, and a significant return of capital to shareholders, indicating robust financial health and a positive outlook for stakeholders.

The most recent analyst rating on (BAC) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

Bank of America Plans Dividend Increase Post-Fed Review

On July 1, 2025, Bank of America announced plans to increase its quarterly common stock dividend from $0.26 to $0.28 per share, subject to board approval, starting in the third quarter of 2025. The announcement followed the results of the Federal Reserve’s 2025 Comprehensive Capital Analysis and Review, which showed an improvement in the bank’s stress capital buffer and CET1 minimum requirement. These changes reflect a stronger capital position, potentially impacting the bank’s operations and stakeholder interests positively.

The most recent analyst rating on (BAC) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

Bank of America Shareholders Approve Equity Plan Changes

On April 22, 2025, Bank of America Corporation held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders approved the amendment and restatement of the Bank of America Corporation Equity Plan, which includes increasing the shares available for grant by 100 million, capping the value of shares granted to non-employee directors, and extending the plan’s expiration date to 2035. These changes are expected to support the company’s compensation strategy and maintain its competitive positioning in the industry.