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BAC Bank of America Corporation - Fundamental Analysis

NEUTRAL
BAC Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Banks - Diversified
Current Price
$55.95
Analyst Target
$59.65
+6.6% Upside
52W High
$56.55
52W Low
$33.07

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AI Analysis

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Confidence Score
78%
Analysis Accuracy
Bank of America's financial health is mixed, with a weak Piotroski F-Score of 4/9 indicating marginal stability, though the Altman Z-Score of 598747439104.0 suggests an extremely low distress risk. The stock trades near its Graham Number of $55.9, implying fair value for defensive investors, while growth metrics like 31.5% YoY earnings growth and strong analyst target of $59.65 support upside potential. However, weak technical trend (10/100), bearish insider activity, and below-sector-average ROE temper optimism. Despite solid profitability and dividend coverage, the lack of key financial data (e.g., debt/equity, cash flow) limits conviction.

Key Strengths

Exceptionally high Altman Z-Score indicates near-zero bankruptcy risk
Strong YoY earnings growth of 31.5% and consistent earnings beat history (3 of last 4 quarters)
Attractive dividend yield of 2.0% with a sustainable 28.96% payout ratio
Profitability margins (29.22% net, 35.29% operating) exceed sector average
Stock trades close to Graham Number ($55.9), suggesting limited downside risk

Key Risks

Low Piotroski F-Score of 4/9 signals weak financial health based on earnings quality, leverage, and operating efficiency trends
Bearish technical trend (10/100) and proximity to 52-week high ($56.55) limit near-term momentum
Insider selling activity ($6.76M in sales, no buys) reflects lack of confidence from insiders
ROE of 9.87% lags significantly behind sector average of 25.76%, indicating suboptimal capital use
Missing key financials (Debt/Equity, Cash/Debt, FCF) obscure full risk assessment and raise transparency concerns
AI Fair Value Estimate
Based on comprehensive analysis
$57.5
+2.8% above current price

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