Bank Of America Stock Piotroski F Score
| BAC Stock | USD 30.96 0.47 1.54% |
BAC | Piotroski F Score |
At this time, it appears that B of A's Piotroski F Score is Poor. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
4.0
Piotroski F Score - Poor
1 | Current Return On Assets | Positive | Focus |
2 | Change in Return on Assets | Increased | Focus |
3 | Cash Flow Return on Assets | Negative | Focus |
4 | Current Quality of Earnings (accrual) | Decreasing | Focus |
5 | Asset Turnover Growth | Increase | Focus |
6 | Current Ratio Change | N/A | Focus |
7 | Long Term Debt Over Assets Change | Lower Leverage | Focus |
8 | Change In Outstending Shares | Increase | Focus |
9 | Change in Gross Margin | No Change | Focus |
B of A Piotroski F Score Drivers
The critical factor to consider when applying the Piotroski F Score to B of A is to make sure BAC is not a subject of accounting manipulations and runs a healthy internal audit department. So, if B of A's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if B of A's financial numbers are properly reported.
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Weighted Average Shares Diluted | 8.6 B | 8.2 B |
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| Weighted Average Shares | 8.4 B | 8.1 B |
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| Return on Average Assets | 0.0082 | 0.008 |
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| Net Cash Flow from Operations | (6.5 B) | (6.3 B) |
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| Total Liabilities | 2.7 T | 2.8 T |
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| Gross Margin | 0.89 | 0.9 |
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| Total Debt | 460.3 B | 498.5 B |
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| Asset Turnover | 0.0312 | 0.03 |
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| Total Assets | 3 T | 3.1 T |
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Bank Of America F Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between B of A's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards B of A in a much-optimized way.
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About B of A Piotroski F Score
F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.Weighted Average Shares |
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B of A Current Valuation Drivers
We derive many important indicators used in calculating different scores of B of A from analyzing B of A's financial statements. These drivers represent accounts that assess B of A's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of B of A's important valuation drivers and their relationship over time.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Net Income Per Employee | 138.0K | 131.9K | 83.8K | 153.7K | 126.9K | 136.9K | |
| Revenue Per Employee | 542.1K | 546.1K | 439.0K | 451.2K | 530.2K | 472.3K | |
| Average Assets | 2.3T | 2.4T | 2.7T | 3.1T | 3.1T | 3.0T | |
| Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 36.6B | 34.5B | 20.8B | 35.9B | 32.9B | 32.0B | |
| Earnings Before Interest Taxes and Depreciation Amortization USD | 36.6B | 34.5B | 20.8B | 35.9B | 32.9B | 32.0B | |
| Earnings before Tax | 34.6B | 32.8B | 19.0B | 34.0B | 31.0B | 29.7B | |
| Average Equity | 264.5B | 267.9B | 268.1B | 273.4B | 269.6B | 291.4B | |
| Enterprise Value | 235.6B | 356.7B | 93.7B | 322.1B | 283.8B | 273.1B | |
| Free Cash Flow | 39.5B | 61.8B | 38.0B | (7.2B) | (6.3B) | (6.5B) | |
| Invested Capital | 2.3T | 2.4T | 2.5T | 3.0T | 3.0T | 3.0T | |
| Invested Capital Average | 2.3T | 2.4T | 2.5T | 2.9T | 3.0T | 3.0T | |
| Market Capitalization | 241.8B | 316.8B | 262.2B | 364.1B | 265.7B | 278.6B | |
| Tangible Asset Value | 2.3T | 2.4T | 2.8T | 3.1T | 3.0T | 2.9T |
B of A 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, B of A's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to B of A's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
About B of A 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 B of A 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.Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. The company was founded in 1784 and is based in Charlotte, North Carolina. B of A operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 213000 people.
Be your own money manager
Our tools can tell you how much better you can do entering a position in B of A without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Pair Trading with B of A
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if B of A position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in B of A will appreciate offsetting losses from the drop in the long position's value.Moving together with BAC Stock
| + | 0.9 | C | Citigroup | Fiscal Quarter End 31st of December 2023 | PairCorr | |
| + | 0.84 | CM | Canadian Imperial Bank | Financial Report 23rd of February 2024 | PairCorr | |
| + | 0.84 | RY | Royal Bank | Fiscal Quarter End 31st of January 2024 | PairCorr | |
| + | 0.86 | TD | Toronto Dominion Bank | Fiscal Quarter End 31st of January 2024 | PairCorr |
The ability to find closely correlated positions to B of A could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace B of A when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back B of A - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank Of America to buy it.
The correlation of B of A is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as B of A moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank Of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for B of A can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out B of A Altman Z Score, B of A Correlation, B of A Valuation, as well as analyze B of A Alpha and Beta and B of A Hype Analysis. Note that the Bank Of America information on this page should be used as a complementary analysis to other B of A's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for BAC Stock analysis
When running B of A's price analysis, check to measure B of A's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy B of A is operating at the current time. Most of B of A's value examination focuses on studying past and present price action to predict the probability of B of A's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move B of A's price. Additionally, you may evaluate how the addition of B of A to your portfolios can decrease your overall portfolio volatility.
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Is B of A's industry 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 B of A. If investors know BAC 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 B of A 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 0.111 | Dividend Share 0.9 | Earnings Share 3.57 | Revenue Per Share 12.017 | Quarterly Revenue Growth 0.014 |
The market value of Bank Of America is measured differently than its book value, which is the value of BAC that is recorded on the company's balance sheet. Investors also form their own opinion of B of A's value that differs from its market value or its book value, called intrinsic value, which is B of A'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 B of A's market value can be influenced by many factors that don't directly affect B of A'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 B of A's value and its price as these two are different measures arrived at by different means. Investors typically determine if B of A is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, B of A'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.