VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Euronext Milan - US92343V1044 - Common Stock - Currency: EUR
1VZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Diversified Telecommunication Services industry. While 1VZ belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1VZ is not valued too expensively and it also shows a decent growth rate. Finally 1VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1VZ had positive earnings in the past year.
In the past year 1VZ had a positive cash flow from operations.
Each year in the past 5 years 1VZ has been profitable.
Each year in the past 5 years 1VZ had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.68%, 1VZ is doing good in the industry, outperforming 78.13% of the companies in the same industry.
The Return On Equity of 1VZ (17.66%) is better than 78.13% of its industry peers.
The Return On Invested Capital of 1VZ (7.49%) is better than 68.75% of its industry peers.
1VZ had an Average Return On Invested Capital over the past 3 years of 7.15%. This is in line with the industry average of 7.75%.
The last Return On Invested Capital (7.49%) for 1VZ is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 17.66% | ||
| ROIC | 7.49% |
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
With an excellent Profit Margin value of 13.14%, 1VZ belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
1VZ's Profit Margin has declined in the last couple of years.
1VZ has a Operating Margin of 23.68%. This is amongst the best in the industry. 1VZ outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of 1VZ has remained more or less at the same level.
With a Gross Margin value of 60.02%, 1VZ perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
1VZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.68% | ||
| PM (TTM) | 13.14% | ||
| GM | 60.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1VZ 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.
Compared to 1 year ago, 1VZ has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.29, 1VZ is in line with its industry, outperforming 56.25% of the companies in the same industry.
1VZ has a debt to FCF ratio of 7.12. This is a slightly negative value and a sign of low solvency as 1VZ would need 7.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.12, 1VZ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that 1VZ has dependencies on debt financing.
The Debt to Equity ratio of 1VZ (1.20) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.12 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.19
WACC6.29%
2.3 Liquidity
1VZ has a Current Ratio of 0.61. This is a bad value and indicates that 1VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
1VZ's Current ratio of 0.61 is on the low side compared to the rest of the industry. 1VZ is outperformed by 78.13% of its industry peers.
1VZ has a Quick Ratio of 0.61. This is a bad value and indicates that 1VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.58, 1VZ is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
1VZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.64%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
Looking at the last year, 1VZ shows a small growth in Revenue. The Revenue has grown by 0.93% in the last year.
1VZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
EPS 1Y (TTM)-0.64%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%3.48%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.53%
3.2 Future
The Earnings Per Share is expected to grow by 4.26% on average over the next years.
The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y4.9%
EPS Next 2Y4.44%
EPS Next 3Y4.42%
EPS Next 5Y4.26%
Revenue Next Year2.1%
Revenue Next 2Y2.03%
Revenue Next 3Y1.84%
Revenue Next 5Y1.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1VZ is valuated reasonably with a Price/Earnings ratio of 9.39.
Based on the Price/Earnings ratio, 1VZ is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
1VZ is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.68, which indicates a very decent valuation of 1VZ.
Based on the Price/Forward Earnings ratio, 1VZ is valued cheaper than 84.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1VZ to the average of the S&P500 Index (22.13), we can say 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
1VZ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1VZ is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1VZ may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y4.44%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 6.26%, which is a nice return.
Compared to an average industry Dividend Yield of 4.30, 1VZ pays a better dividend. On top of this 1VZ pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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
1VZ pays out 63.59% of its income as dividend. This is not a sustainable payout ratio.
1VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.59%
EPS Next 2Y4.44%
EPS Next 3Y4.42%
BIT:1VZ (5/22/2025, 7:00:00 PM)
38.51
+1 (+2.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.92%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap162.36B
Analysts73.71
Price Target42.08 (9.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
Yearly Dividend2.36
Dividend Growth(5Y)1.99%
DP63.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-2.47%
Max EPS beat(2)0.67%
EPS beat(4)1
Avg EPS beat(4)-1.56%
Min EPS beat(4)-2.67%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-0.94%
EPS beat(12)3
Avg EPS beat(12)-1.41%
EPS beat(16)5
Avg EPS beat(16)-1.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-1.92%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)0
Avg Revenue beat(12)-2.94%
Revenue beat(16)1
Avg Revenue beat(16)-2.78%
PT rev (1m)-8.12%
PT rev (3m)-8.19%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.35 | ||
| P/FCF | 9.08 | ||
| P/OCF | 4.87 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.48 |
EPS(TTM)4.1
EY10.65%
EPS(NY)4.44
Fwd EY11.52%
FCF(TTM)4.24
FCFY11.02%
OCF(TTM)7.91
OCFY20.53%
SpS28.45
BVpS21.18
TBVpS-18.86
PEG (NY)1.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 17.66% | ||
| ROCE | 10.03% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 18.89% | ||
| OM | 23.68% | ||
| PM (TTM) | 13.14% | ||
| GM | 60.02% | ||
| FCFM | 14.91% |
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%
ROICexcg growth 3Y0.43%
ROICexcg 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.12 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 96.72% | ||
| Cap/Sales | 12.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 113.47% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.29 |
F-Score7
WACC6.29%
ROIC/WACC1.19
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)-0.64%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%3.48%
EPS Next Y4.9%
EPS Next 2Y4.44%
EPS Next 3Y4.42%
EPS Next 5Y4.26%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.53%
Revenue Next Year2.1%
Revenue Next 2Y2.03%
Revenue Next 3Y1.84%
Revenue Next 5Y1.81%
EBIT growth 1Y5.56%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.37%
EBIT Next 3Y21.62%
EBIT Next 5Y13.35%
FCF growth 1Y55.55%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-2.59%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%