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. Overall the company's long term financial model is characterised by the following facts:
- Bank Of America Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 is 0.3%. Average EBITDA Margin for the same period was 0.0%
- In the last 5 years the company invested considerably less than D&A: $0m vs. $2,063m
- The company has potentially unprofitable business model: ROIC is 4.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 2.7%. During FY2015-FY2019 Revenue growth topped in FY2018 at 10.3%.
Net Income margin decreased slightly on 1.3 pp from 25.5% to 24.1% in FY2019. Net Income margin followed a growing trend at 2.1 pp per annum in FY2015-FY2019.
Return on investment
The company operates at low ROIC (4.2%) and ROE (10.7%). ROIC showed almost no change in FY2019. ROE showed almost no change in FY2019. ROIC stuck to a growing trend at 0.36 pp per annum in FY2015-FY2019. ROE stuck to a growing trend at 1.3 pp per annum in the last 5 years.
Leverage (Debt)
Debt increased slightly on 1.7% while cash decreased on 8.9%.
Bank Of America Corp has short term refinancing risk: cash is only 59.3% of short term debt.
Financial and operational results
FY ended 30 Nov -0001
Bank Of America Corp ($BAC) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 93,514 | 93,662 | 100,264 | 110,584 | 113,589 | 2.7% |
| Tax | | | | 6,437 | | |
| Net Income | 15,836 | 17,822 | 18,232 | 28,147 | 27,430 | -2.5% |
| Stock Based Compensation | | | | 1,729 | | |
Balance Sheet
|
|---|
| Cash | 159,353 | 147,738 | 157,434 | 177,404 | 161,560 | -8.9% |
| Short Term Debt | 269,352 | 257,266 | 290,718 | 275,397 | 272,583 | -1.0% |
| Long Term Debt | 236,764 | 216,823 | 227,402 | 229,340 | 240,856 | 5.0% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | | | |
| Dividends | | | | 6,895 | | |
Ratios
|
|---|
| Revenue growth | -1.8% | 0.2% | 7.0% | 10.3% | 2.7% | |
|
|---|
| SBC, % of revenue | | | | 1.6% | |
| Net Income Margin | 16.9% | 19.0% | 18.2% | 25.5% | 24.1% | -1.3% |
|
|---|
| ROIC | 2.9% | 3.4% | 3.9% | 4.5% | 4.2% | -0.2% |
| ROE | 6.3% | 6.8% | 6.8% | 10.9% | 10.7% | -0.2% |
People
|
|---|
| Insider ownership | | | | 0.1% | | |
| Employees | | | | 204,000 | | |
| Revenue/Employee, th. $ | | | | 542 | | |
Peers in Banks
Below you can find Bank Of America Corp benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bank Muscat ($BKM) | | 6.9% | 8.2% | 5,513.3% | 19.2% |
| Yapi Ve Kredi Bankasi As ($YKBD) | 25.3% | 17.8% | 18.8% | 51.8% | |
| Turkiye Garanti Bankasi ($39IS) | 10.3% | 20.4% | 18.6% | 50.6% | |
| Finansbank ($FBKD) | 6.9% | 16.8% | 19.0% | 50.1% | |
| Turk Ekonomi Bankasi As ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| |
|---|
| Median (19 companies) | 4.8% | 3.9% | 4.5% | 12.9% | 13.8% |
|---|
| Bank Of America Corp ($BAC) | | 0.2% | 7.0% | 10.3% | 2.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Banco Santander Sa ($BNC) | 10.2% | 9.1% | 10.0% | 14.7% | |
| Bcb Hldgs Ltd ($BCBW) | 2.5% | 3.0% | 7.3% | 5.9% | |
| Barclays ($BARC) | 7.1% | 6.3% | 5.4% | 4.9% | |
| Royal Bank Of Scotland Group ($RBS) | 4.6% | 5.6% | 7.1% | 3.7% | |
| Turkiye Garanti Bankasi ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | |
| |
|---|
| Median (17 companies) | 2.6% | 2.5% | 1.9% | 1.3% | 1.2% |
|---|
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | -8.7% | 5.7% | 5.0% | 34.6% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.3% | 28.0% | 25.3% | 25.4% | |
| Komercni Banka ($KMCA) | 7.4% | 8.0% | 9.1% | 8.7% | |
| Turkiye Garanti Bankasi ($39IS) | 4.3% | 5.5% | 6.5% | 6.5% | |
| Finansbank ($FBKD) | 3.1% | 4.3% | 4.6% | 5.4% | |
| |
|---|
| Median (34 companies) | 3.5% | 4.6% | 4.6% | 4.1% | 4.7% |
|---|
| Bank Of America Corp ($BAC) | 2.9% | 3.4% | 3.9% | 4.5% | 4.2% |
