BAC
Bank of America Corporation
Financial Services · Banks - Diversified · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 56.7/100 reflects a bank with solid but not exceptional fundamentals: healthy profitability and financial health scores are offset by moderate revenue growth and uneven recent quarterly momentum.
- The dividend factor contributed positively due to consistent annual dividend per share increases from FY2022 through FY2025 and a sustainable 31.3% payout ratio, but the profile is balanced rather than high-yield.
- The absence of any macro theme assignment means the theme component contributed zero to the total score, which meaningfully limits the composite result despite the bank's underlying financial strength.
Why Not Higher
- Revenue growth of 6.8% is considered moderate within the model's full scoring range, and the recent quarterly plateau in revenue near $30.3 billion and pullback in operating income from 2025Q4 tempered the momentum score.
- A return on equity of 10.1%, while positive, leaves room relative to higher-returning peers, and the lack of any macro theme assignment removed a full scoring category from the composite total.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew 6.8% from FY2024 to FY2025, net income rose 13.1% over the same period, and diluted EPS increased 19.4% from FY2024 to FY2025.
The model recognized meaningful earnings and EPS acceleration, but the mid-range score suggests the revenue growth rate of 6.8% in FY2024-to-FY2025 was considered moderate relative to the full scoring range, even as bottom-line metrics expanded more sharply.
In FY2025, Bank of America posted a net margin of 27.0%, an operating margin of 33.3%, and a return on equity of 10.1%.
The model rewarded the solid double-digit margins and a positive ROE, reflecting a profitable and efficiently run banking operation; the score stops short of the maximum, consistent with an ROE of 10.1% that, while healthy, leaves room relative to higher-returning peers.
In FY2025, Bank of America carried a debt-to-equity ratio of 1.05 and held total assets of $3,411,738,000,000.
The model recognized the bank's massive asset base as a sign of scale and stability, while the debt-to-equity ratio of 1.05 in FY2025 reflects leverage that is typical for large financial institutions; together these metrics supported a solid but not maximum score.
Revenue trended upward from $26,463,000,000 in 2025Q2 to $30,299,000,000 in 2025Q4 before holding nearly flat at $30,272,000,000 in 2026Q1. Net income showed variability across the four quarters — $7,116,000,000 in 2025Q2, $8,469,000,000 in 2025Q3, $7,564,000,000 in 2025Q4, and $8,584,000,000 in 2026Q1 — while operating income rose sharply through 2025Q4 at $11,554,000,000 before pulling back to $10,404,000,000 in 2026Q1.
The model captured a generally positive but uneven trajectory: revenue plateaued in the most recent quarter and operating income decelerated from its 2025Q4 peak, which likely tempered the momentum score to a mid-range result.
Bank of America's dividends per share have grown consecutively from $0.86 in FY2022 to $0.92 in FY2023, $1.00 in FY2024, and $1.08 in FY2025, with a dividend payout ratio of 31.3% in FY2025.
The model rewarded the consistent multi-year dividend growth trend, while the payout ratio of 31.3% in FY2025 indicates the company retains the majority of earnings, reflecting a balanced but not high-yield dividend profile that supports a moderate score.
Bank of America is not currently assigned to any of the 24 tracked macro themes.
Because no macro theme assignment exists for this security at this time, the theme component contributed no score under the model's current methodology; this reflects the absence of a theme tag rather than any judgment about the company's business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Bank of America delivered solid FY2025 results, with revenue growing 6.8% to $113.1 billion, net income rising 13.1% to $30.5 billion, and diluted EPS jumping 19.4% to $3.81, reflecting meaningful bottom-line acceleration relative to top-line growth. Profitability metrics were healthy, with a 27.0% net margin, 33.3% operating margin, and 10.1% return on equity, supported by a massive $3.4 trillion asset base and a manageable debt-to-equity ratio of 1.05. Recent quarterly momentum showed revenue plateauing near $30.3 billion and operating income pulling back from its 2025Q4 peak, introducing some near-term uncertainty. The bank also maintained a consistent dividend growth track record, raising dividends per share from $0.86 in FY2022 to $1.08 in FY2025, while retaining the majority of earnings with a 31.3% payout ratio.
Plain English
Bank of America is a massive, profitable bank that grew its earnings faster than its revenues last year and has been steadily raising its dividend, but its recent quarterly results have been a bit uneven and it doesn't currently fit into any high-momentum investment theme being tracked.
Bull Case vs. Bear Case
Bull Case
- Earnings and EPS growth significantly outpaced revenue growth in FY2025, with net income up 13.1% and diluted EPS up 19.4%, suggesting improving operational efficiency and shareholder value creation.
- The bank's $3.4 trillion asset base and solid profitability metrics — including a 27.0% net margin and 33.3% operating margin — reflect the scale and earnings power of a well-run major financial institution.
- Dividends per share have grown every year from $0.86 in FY2022 to $1.08 in FY2025, with a conservative 31.3% payout ratio leaving ample room for continued dividend increases or capital reinvestment.
Bear Case
- Revenue growth of 6.8% in FY2025 is moderate, and the most recent quarter showed revenue nearly flat at $30.3 billion, suggesting top-line momentum may be stalling.
- Operating income pulled back to $10.4 billion in 2026Q1 from a peak of $11.6 billion in 2025Q4, indicating some deceleration in profitability at the operating level.
- Bank of America is not assigned to any of the 24 tracked macro themes, meaning it receives no tailwind from thematic momentum under the current model framework.
What Could Change the Picture
Bullish Triggers
- A sustained reacceleration in quarterly revenue growth beyond the current plateau near $30.3 billion, combined with operating income returning to or exceeding its 2025Q4 peak, would signal renewed momentum.
- An increase in return on equity meaningfully above the current 10.1% would strengthen the profitability case and close the gap relative to higher-returning peers.
Bearish Triggers
- A reversal in the multi-year dividend growth trend or a significant increase in the payout ratio beyond the current 31.3% could signal stress on earnings quality or capital allocation discipline.
- A meaningful rise in the debt-to-equity ratio above the current 1.05 level, or deterioration in net margin from the current 27.0%, would raise concerns about financial health and profitability sustainability.
Red Flags
- ONE_TIME_REVIEW: 2022 OCF/NI ratio = -0.23 (OCF=-6,327,000,000, NI=27,528,000,000) — possible large one-time item
- ONE_TIME_REVIEW: 2024 OCF/NI ratio = -0.33 (OCF=-8,805,000,000, NI=26,973,000,000) — possible large one-time item
Risk Profile
Low RiskBank of America's debt-to-equity ratio of 1.05 reflects leverage that is typical for large financial institutions, and its $3.4 trillion asset base provides significant scale and stability. However, the uneven quarterly net income trajectory and the pullback in operating income from $11.6 billion in 2025Q4 to $10.4 billion in 2026Q1 introduce some near-term execution uncertainty.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.