Trending stocks

Bank Of America Corp revenue increased on 2.7%

15 Jan 2020 • About Bank Of America Corp ($BAC) • By InTwits

Bank Of America Corp reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
  • Bank Of America Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 was 0.3% while average EBITDA Margin was 0.0% for the sames years
  • In the last 5 years the company invested considerably less than D&A: $0m vs. $2,063m
  • The company has potentially unprofitable business model: ROIC is 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Bank Of America Corp's Revenue increased on 2.7%. During FY2015-FY2019 Revenue growth topped in FY2018 at 10.3%.

Net Income margin decreased slightly on 1.3 pp from 25.5% to 24.1% in FY2019. Net Income margin stuck to a growing trend at 2.1 pp per annum in FY2015-FY2019.

Return on investment

The company operates at low ROIC (4.2%) and ROE (10.7%). ROIC showed almost no change in FY2019. ROE showed almost no change in FY2019. ROIC grew at 0.36 pp per annum in the last 5 years. ROE grew at 1.3 pp per annum in FY2015-FY2019.

Leverage (Debt)

Debt increased slightly on 1.7% while cash decreased on 8.9%.

Bank Of America Corp has short term refinancing risk: cash is only 59.3% of short term debt.

Financial and operational results

FY ended 30 Nov -0001

Bank Of America Corp ($BAC) key annual financial indicators

mln. $201520162017201820192019/2018
Net Income15,83617,82218,23228,14727,430-2.5%
Stock Based Compensation1,729
Balance Sheet
Short Term Debt269,352257,266290,718275,397272,583-1.0%
Long Term Debt236,764216,823227,402229,340240,8565.0%
Cash flow
Revenue growth-1.8%0.2%7.0%10.3%2.7%

SBC, % of revenue1.6%
Net Income Margin16.9%19.0%18.2%25.5%24.1%-1.3%

Insider ownership0.1%
Revenue/Employee, th. $542

Peers in Banks

Below we provide Bank Of America Corp benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Development Securities(Investments) ($36JS)156.8%18.9%-48.8%40.1%
Corus Finance ($BD84)-99.5%13,313.3%10.4%12.9%
Bld Property Hldgs ($09GE)39.3%6.1%-0.2%8.5%
Sanctuary Housing ($BB21)5.3%7.2%0.3%5.5%
Housing Finance Corp ($68HB)9.1%10.9%8.2%3.0%
Median (14 companies)1.0%1.5%2.1%3.0%

Top companies by Gross margin, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Sanctuary Housing ($BB21)97.6%97.1%97.4%98.1%
Glh Hotels Ltd ($97KI)57.6%57.8%60.1%59.0%
Lewis(John)Partnership ($BD32)33.8%33.9%33.8%33.0%
Lewis(John) ($BC32)33.8%33.9%33.8%33.0%
Ashpol ($BC24)0.0%0.0%
Median (8 companies)33.8%32.7%31.9%16.5%

Top companies by EBITDA margin, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
T.H.F.C.(Indexed 2) ($90IL)97.9%97.1%96.2%96.4%
Housing Finance Corp ($68HB)97.9%97.1%96.2%96.4%
T.H.F.C.(Indexed) ($96JS)97.9%97.1%96.2%96.4%
T.H.F.C.(Social Housing Finance) ($96JP)97.9%97.1%96.2%96.4%
Bld Property Hldgs ($09GE)215.1%165.3%36.3%87.6%
Median (13 companies)44.3%39.7%29.2%52.7%

Top companies by CAPEX/Revenue, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Bld Property Hldgs ($09GE)59.2%84.6%53.0%55.6%
Sanctuary Housing ($BB21)60.0%31.0%33.3%42.3%
Mid Kent Water ($48HO)37.7%41.2%38.1%41.7%
Glh Hotels Ltd ($97KI)13.1%4.9%4.6%9.0%
Corus Finance ($BD84)9.6%6.6%5.7%
Median (13 companies)3.8%3.3%3.0%2.2%

Top companies by ROIC, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Corus Finance ($BD84)-19.6%2.1%8.4%10.7%
Lewis(John) ($BC32)18.6%19.8%22.0%8.2%
Lewis(John)Partnership ($BD32)18.6%19.8%22.0%8.2%
Glh Hotels Ltd ($97KI)4.9%5.7%5.6%7.5%
Development Securities(Investments) ($36JS)7.4%5.1%0.2%6.1%
Median (43 companies)3.2%3.9%2.6%1.0%

Top companies by Net Debt / EBITDA

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
T.H.F.C.(Indexed 2) ($90IL)20.3x22.6x24.3x28.0x
T.H.F.C.(Indexed) ($96JS)20.3x22.6x24.3x28.0x
T.H.F.C.(Social Housing Finance) ($96JP)20.3x22.6x24.3x28.0x
Housing Finance Corp ($68HB)20.3x22.6x24.3x28.0x
West Bromwich B.S. ($WBS)2.3x4.9x10.5x12.7x
Median (13 companies)3.1x4.0x4.6x8.6x