VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1VZ - US92343V1044 - Common Stock
34.44 EUR
+0.43 (+1.28%)
Overall 1VZ gets a fundamental rating of 5 out of 10. We evaluated 1VZ against 33 industry peers in the Diversified Telecommunication Services industry. 1VZ scores excellent on profitability, but there are concerns on its financial health. 1VZ scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 1VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1VZ had positive earnings in the past year.
1VZ had a positive operating cash flow in the past year.
1VZ had positive earnings in each of the past 5 years.
Each year in the past 5 years 1VZ had a positive operating cash flow.
1.2 Ratios
1VZ has a Return On Assets of 5.11%. This is in the better half of the industry: 1VZ outperforms 75.76% of its industry peers.
With a decent Return On Equity value of 18.88%, 1VZ is doing good in the industry, outperforming 69.70% of the companies in the same industry.
1VZ has a Return On Invested Capital of 7.38%. This is in the better half of the industry: 1VZ outperforms 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1VZ is in line with the industry average of 7.68%.
The last Return On Invested Capital (7.38%) for 1VZ is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROIC | 7.38% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
1.3 Margins
1VZ has a better Profit Margin (14.43%) than 87.88% of its industry peers.
In the last couple of years the Profit Margin of 1VZ has declined.
1VZ has a Operating Margin of 23.63%. This is amongst the best in the industry. 1VZ outperforms 87.88% of its industry peers.
In the last couple of years the Operating Margin of 1VZ has remained more or less at the same level.
1VZ has a Gross Margin (59.41%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1VZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% |
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
1VZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1VZ remains at a similar level compared to 1 year ago.
1VZ has more shares outstanding than it did 5 years ago.
1VZ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that 1VZ is in the distress zone and has some risk of bankruptcy.
1VZ has a Altman-Z score of 1.29. This is in the better half of the industry: 1VZ outperforms 69.70% of its industry peers.
The Debt to FCF ratio of 1VZ is 7.11, which is on the high side as it means it would take 1VZ, 7.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.11, 1VZ is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that 1VZ has dependencies on debt financing.
1VZ has a Debt to Equity ratio of 1.21. This is comparable to the rest of the industry: 1VZ outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.28
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 1VZ may have some problems paying its short term obligations.
With a decent Current ratio value of 0.74, 1VZ is doing good in the industry, outperforming 60.61% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that 1VZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, 1VZ perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.28% over the past year.
1VZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.93% yearly.
Looking at the last year, 1VZ shows a small growth in Revenue. The Revenue has grown by 2.42% in the last year.
The Revenue has been growing slightly by 0.44% on average over the past years.
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
3.2 Future
Based on estimates for the next years, 1VZ will show a small growth in Earnings Per Share. The EPS will grow by 4.16% on average per year.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.59, the valuation of 1VZ can be described as reasonable.
Based on the Price/Earnings ratio, 1VZ is valued cheaper than 93.94% of the companies in the same industry.
1VZ is valuated cheaply when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.14, the valuation of 1VZ can be described as reasonable.
1VZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 81.82% of the companies in the same industry.
1VZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1VZ indicates a somewhat cheap valuation: 1VZ is cheaper than 69.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1VZ is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1VZ may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y4.1%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, 1VZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.32, 1VZ pays a better dividend. On top of this 1VZ pays more dividend than 87.88% of the companies listed in the same industry.
1VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
The dividend of 1VZ has a limited annual growth rate of 1.99%.
Dividend Growth(5Y)1.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
57.56% of the earnings are spent on dividend by 1VZ. This is a bit on the high side, but may be sustainable.
The dividend of 1VZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.56%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
BIT:1VZ (12/29/2025, 7:00:00 PM)
34.44
+0.43 (+1.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners68.86%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap145.21B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target40.69 (18.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend2.28
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)2
Avg EPS beat(8)-1.26%
EPS beat(12)4
Avg EPS beat(12)-1.17%
EPS beat(16)4
Avg EPS beat(16)-1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)-3.55%
PT rev (3m)-4.11%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.14 | ||
| P/S | 1.24 | ||
| P/FCF | 8.27 | ||
| P/OCF | 4.44 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.01
EY11.64%
EPS(NY)4.23
Fwd EY12.28%
FCF(TTM)4.17
FCFY12.09%
OCF(TTM)7.76
OCFY22.52%
SpS27.74
BVpS21.19
TBVpS-17.2
PEG (NY)1.6
PEG (5Y)N/A
Graham Number43.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROCE | 9.88% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 18.55% | ||
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% | ||
| FCFM | 15.02% |
ROA(3y)4.4%
ROA(5y)4.97%
ROE(3y)17.84%
ROE(5y)21.35%
ROIC(3y)7.15%
ROIC(5y)7.43%
ROICexc(3y)7.22%
ROICexc(5y)7.63%
ROICexgc(3y)17.6%
ROICexgc(5y)17.93%
ROCE(3y)9.58%
ROCE(5y)9.96%
ROICexgc growth 3Y0.43%
ROICexgc growth 5Y-0.86%
ROICexc growth 3Y-0.4%
ROICexc growth 5Y-4.26%
OM growth 3Y-0.77%
OM growth 5Y0.34%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 97.11% | ||
| Cap/Sales | 12.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.29 |
F-Score7
WACC5.75%
ROIC/WACC1.28
Cap/Depr(3y)132.1%
Cap/Depr(5y)187.34%
Cap/Sales(3y)17.07%
Cap/Sales(5y)23.57%
Profit Quality(3y)89.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.1%
EBIT Next 3Y21.48%
EBIT Next 5Y13.42%
FCF growth 1Y50.97%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y1.89%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%
VERIZON COMMUNICATIONS INC / 1VZ.MI FAQ
Can you provide the ChartMill fundamental rating for VERIZON COMMUNICATIONS INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1VZ.MI.
What is the valuation status of VERIZON COMMUNICATIONS INC (1VZ.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to VERIZON COMMUNICATIONS INC (1VZ.MI). This can be considered as Undervalued.
Can you provide the profitability details for VERIZON COMMUNICATIONS INC?
VERIZON COMMUNICATIONS INC (1VZ.MI) has a profitability rating of 7 / 10.
What is the valuation of VERIZON COMMUNICATIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (1VZ.MI) is 8.59 and the Price/Book (PB) ratio is 1.63.
What is the earnings growth outlook for VERIZON COMMUNICATIONS INC?
The Earnings per Share (EPS) of VERIZON COMMUNICATIONS INC (1VZ.MI) is expected to grow by 5.35% in the next year.