| |
|
|
| Comapny name |
: |
Bank of America Corporation |
| Share |
: |
BAC |
Analysis date |
: |
10-Jul-2009 |
| Stock exchange |
: |
NYSE |
Rating |
: |
6/9 |
|
| |
| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
| |
1) EPS has increased consistently over 5 years? |
Yes |
| |
2) Sales has increased Consistently over 5 years? |
Yes |
| |
3) Cash Flow has increased consistently over 5 years? |
No |
| |
4) What is the historical/projected EPS growth rate?
|
8.60% |
| |
|
|
| 2 |
Sunstainable Competitive Advantage |
| |
1) The company has a sustainable competitive advantage? |
Yes |
| |
The Company operates in 30 states, the District of Columbia and 44 foreign countries. In the United States, it serves more than 55 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 automated teller machines (ATMs) and more than 21 million active online users. |
|
|
| 3 |
Future Growth Drivers |
| |
1) The company has future growth drivers in place? |
Yes |
| |
Yes, BAC is teaming up with China Construction Bank to tap into the huge growth potential in China. |
|
|
| 4 |
Conservative Debt |
| |
1) The company has Long Term Debt <3x Net Profit? |
No |
| |
2) Long-Term Debt is $
|
146,000.0 million |
| |
3) Net Profit is $
|
21,133.0 million |
| |
|
|
| 5 |
High & Consistent ROE and ROA |
| |
1) The company has ROE>12-15% over 5 years? |
Yes |
| |
2) The company has ROA>7% over 5 years? |
No |
| |
|
|
| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
| |
1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
| |
2) Is ( Free Cash Flow/Sales Revenue )>5%? |
No |
| |
Free Cash Flow/Sales Revenue unknown. |
|
|
| 7 |
Management is Holding/Buying the Stock |
| |
1) Key Management has not been selling large Proportion of company stock? |
Yes |
| |
|
|
| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
| |
1) Current operating cash flow/EPS
|
4.59 (EPS) |
| |
2) Projected Earnings Growth Rate
|
8.60% |
| |
3) Number of shares outstanding
|
4595 Million |
| |
4) Intrinsic Value
|
$58.69 |
| |
5) Share price is below intrinsic value? |
Yes |
| |
|
|
| 9 |
Stock Price is Consolidating or on an Uptrend |
| |
1) Stock price breaking out of consolidating |
No |
| |
2) Stock price at a dip on a uptrend |
No |
| |
3) Stock price above 20 or 50 day moving average |
No |
| |
|
|
