Is Bank of America’s Stock a Buy Now?

E = Equity to Debt Ratio Is Weak

The debt-to-equity ratio for Bank of America is far from impressive. However, considering the company’s challenges over the past few years, this should come as no surprise. Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM) also have less-than-stellar debt-to-equity ratios. The balance sheet for Bank of America looks good.  

Debt-To-Equity

Cash

Long-Term Debt

BAC

2.50

$567.49 Billion

$286.53 Billion

C

2.89

$796.57 Billion

$271.86 Billion

JMP

2.89

$886.73 Billion

$263.40 Billion

 

T = Technicals on the Stock Chart Are Strong

As mentioned earlier, Bank of America has performed extremely well over the past year. A small dividend payment doesn’t hurt, either. The dividend is also likely to increase next year. That said, if you’re looking for healthy dividend payments going forward, then your best bet in this group will be JPMorgan Chase.

1 Month

Year-To-Date

1 Year

3 Year

BAC

20.83%

110.70%

113.80%

-22.57%

C

13.24%

51.01%

47.40%

18.70%

JMP

7.90%

36.18%

37.09%

10.99%

 

At $11.66, Bank of America is currently trading above all its averages.

50-Day SMA

9.93

100-Day SMA

9.22

200-Day SMA

8.63

 

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E = Earnings and Revenue Have Been Inconsistent

Back of America is still trying to work out its past failures. As this process takes place, expect to see more inconsistency in the near future when it comes to revenue and earnings.

2007

2008

2009

2010

2011

Revenue ($)in billions

119.70

113.11

150.45

134.19

115.07

Diluted EPS ($)

3.29

.54

-.29

-.37

.01

 

Looking at the last quarter on a YoY basis, we see a decrease in both revenue and earnings. This is uninspiring, yet not unexpected.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

33.82

29.60

26.89

26.41

24.47

Diluted EPS ($)

.56

.18

.03

.19

0.00