Bank of America (BAC) AI Stock Analysis

• Market Cap: $388.49B
• Dividend Yield: 2.02%
• Average Volume (3M): 34.83M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.16
• Revenue Growth: 1.36%
• 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: 39,122,992
• 30 Day Avg. Volume: 34,830,564
• 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: 2.86
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: 10.96
• Enterprise Value/Ebitda: 32.62
• 1Y Price Target: $58.91
• Price Target Upside: 10.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 3.82
• Revenue Forecast (FY): $109.79B

• Rating: 70 Outperform
• Price Target: $59.00 ▲(10.90% Upside)

Bank of America's overall stock score reflects strong technical momentum and positive earnings call insights, with robust growth in key segments. Financial performance is stable but challenged by high leverage and cash flow issues. Valuation is fair, with a reasonable P/E ratio and dividend yield.

Positive Factors

Revenue Growth

The 11% YoY revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Investment Banking Performance

Robust growth in investment banking fees highlights the company's strong position in the financial services market, boosting profitability.

Technological Advancements

Increased adoption of AI-driven tools enhances operational efficiency and client satisfaction, strengthening competitive advantage.

Negative Factors

High Leverage

Significant leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health.

Cash Flow Challenges

Declining cash flow growth indicates potential difficulties in funding operations and investments, affecting long-term sustainability.

Consumer Deposit Growth Concerns

Sluggish deposit growth may limit the bank's ability to fund loans and investments, impacting future revenue potential.

Bank of America Business Overview & Revenue Model

Company Description

Bank of America (BAC) is one of the largest financial institutions in the United States, providing a comprehensive range of banking and financial services. The company operates through several segments, including Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets. Its core products and services encompass personal banking, credit cards, mortgages, investment services, corporate banking, and asset management, serving millions of customers worldwide.

How the Company Makes Money

Bank of America generates revenue through multiple key streams. Primarily, it earns interest income from loans, including personal loans, mortgages, and business loans, which are charged at higher rates than the interest paid on deposits. Additionally, the bank generates fee income from various services, such as account maintenance fees, transaction fees, and ATM fees. Investment banking services, including underwriting and advisory fees, contribute significantly to revenue, as do asset management and wealth management services. The bank also benefits from trading and investment activities in its Global Markets division. Strategic partnerships with financial technology firms and other businesses enhance its product offerings and customer reach, further bolstering its earnings potential.

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	34.07B	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: 53.20
• 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 53.2 is above the 20-day moving average (MA) of 52.37, above the 50-day MA of 51.38, and above the 200-day MA of 45.73, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.40 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	78 Outperform	$241.86B	15.04	8.66%	4.55%	-9.54%	-22.46%
WFC	76 Outperform	$270.09B	14.17	11.56%	1.97%	-4.37%	26.41%
JPM	72 Outperform	$855.36B	15.56	16.35%	1.77%	1.89%	12.32%
GS	71 Outperform	$235.85B	15.97	13.57%	1.63%	2.31%	44.49%
BAC	70 Outperform	$388.49B	14.53	9.87%	2.02%	1.36%	33.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
C	67 Neutral	$180.34B	14.17	6.88%	2.29%	-0.62%	105.57%

Bank of America Corporate Events

Bank of America Reports Strong Q3 2025 Earnings

Bank of America is a leading global financial institution, offering a wide range of banking, investing, asset management, and other financial services to individual consumers, small and middle-market businesses, and large corporations. The company is renowned for its extensive digital banking capabilities and significant presence in wealth management and corporate and investment banking sectors.

Bank of America Earnings Call Highlights Robust Growth

Bank of America’s recent earnings call exuded a largely positive sentiment, highlighting robust financial performance and growth across various segments. The call underscored strong results in investment banking and wealth management, though it also touched on concerns regarding consumer deposit growth and the quality of commercial loan growth.

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.

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.

Bank of America Files Current Report with SEC

Bank of America Corporation has submitted its Current Report on Form 8-K to the National Storage Mechanism, following its filing with the U.S. Securities and Exchange Commission on September 12, 2025. This submission ensures transparency and compliance with regulatory requirements, potentially impacting stakeholders by providing updated information on the company’s operations and financial status.

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.

The most recent analyst rating on (BAC) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.