Bank Of America Stock Operating Margin
| BAC Stock | USD 47.51 0.26 0.54% |
Bank of America fundamentals help investors to digest information that contributes to Bank of America's financial success or failures. It also enables traders to predict the movement of Bank Stock. The fundamental analysis module provides a way to measure Bank of America's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Bank of America stock.
| Last Reported | Projected for Next Year | ||
| Operating Profit Margin | 0.40 | 0.26 |
Bank | Operating Margin |
Bank of America Company Operating Margin Analysis
Bank of America's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current Bank of America Operating Margin | 0.31 % |
Most of Bank of America's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Bank of America is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Bank Operating Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for Bank of America is extremely important. It helps to project a fair market value of Bank Stock properly, considering its historical fundamentals such as Operating Margin. Since Bank of America's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Bank of America's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Bank of America's interrelated accounts and indicators.
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
| Competition |
Bank Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, Bank of America has an Operating Margin of 0.3077%. This is 98.33% lower than that of the Banks sector and significantly higher than that of the Financials industry. The operating margin for all United States stocks is 105.58% lower than that of the firm.
Bank Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Bank of America's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Bank of America could also be used in its relative valuation, which is a method of valuing Bank of America by comparing valuation metrics of similar companies.Bank of America is currently under evaluation in operating margin category among its peers.
Bank of America ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Bank of America's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Bank of America's managers, analysts, and investors.Environmental | Governance | Social |
Bank Fundamentals
| Return On Equity | 0.0809 | ||||
| Return On Asset | 0.0073 | ||||
| Profit Margin | 0.25 % | ||||
| Operating Margin | 0.31 % | ||||
| Current Valuation | 361.01 B | ||||
| Shares Outstanding | 7.67 B | ||||
| Shares Owned By Insiders | 10.07 % | ||||
| Shares Owned By Institutions | 63.29 % | ||||
| Number Of Shares Shorted | 81.28 M | ||||
| Price To Earning | 11.71 X | ||||
| Price To Book | 1.35 X | ||||
| Price To Sales | 3.85 X | ||||
| Revenue | 98.58 B | ||||
| Gross Profit | 92.41 B | ||||
| EBITDA | 30.37 B | ||||
| Net Income | 26.52 B | ||||
| Cash And Equivalents | 733.43 B | ||||
| Cash Per Share | 91.42 X | ||||
| Total Debt | 334.3 B | ||||
| Debt To Equity | 7.37 % | ||||
| Book Value Per Share | 35.37 X | ||||
| Cash Flow From Operations | 44.98 B | ||||
| Short Ratio | 2.14 X | ||||
| Earnings Per Share | 2.76 X | ||||
| Price To Earnings To Growth | 2.13 X | ||||
| Target Price | 47.79 | ||||
| Number Of Employees | 213 K | ||||
| Beta | 1.33 | ||||
| Market Capitalization | 364.54 B | ||||
| Total Asset | 3.18 T | ||||
| Retained Earnings | 224.67 B | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 2.06 % | ||||
| Net Asset | 3.18 T | ||||
| Last Dividend Paid | 0.98 |
About Bank of America Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Bank of America's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Bank of America using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Bank of America based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Bank of America offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bank of America's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of America Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of America Stock:Check out Bank of America Piotroski F Score and Bank of America Altman Z Score analysis. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bank of America. If investors know Bank will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bank of America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.10) | Dividend Share 0.98 | Earnings Share 2.76 | Revenue Per Share 11.95 | Quarterly Revenue Growth (0.01) |
The market value of Bank of America is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of America's value that differs from its market value or its book value, called intrinsic value, which is Bank of America's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bank of America's market value can be influenced by many factors that don't directly affect Bank of America's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bank of America's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of America's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.