VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Euronext Milan - US92343V1044 - Common Stock - Currency: EUR
Overall 1VZ gets a fundamental rating of 5 out of 10. We evaluated 1VZ against 30 industry peers in the Diversified Telecommunication Services industry. While 1VZ has a great profitability rating, there are quite some 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.
1VZ had positive earnings in each of the past 5 years.
In the past 5 years 1VZ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.55%, 1VZ is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
1VZ has a better Return On Equity (17.64%) than 76.67% of its industry peers.
1VZ's Return On Invested Capital of 7.40% is fine compared to the rest of the industry. 1VZ outperforms 66.67% 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 8.11%.
The last Return On Invested Capital (7.40%) for 1VZ is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 17.64% | ||
| ROIC | 7.4% |
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 a decent Profit Margin value of 12.99%, 1VZ is doing good in the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Profit Margin of 1VZ has declined.
1VZ has a better Operating Margin (23.53%) than 83.33% 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 of 60.01%. This is comparable to the rest of the industry: 1VZ outperforms 53.33% of its industry peers.
1VZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.53% | ||
| PM (TTM) | 12.99% | ||
| GM | 60.01% |
OM growth 3Y-0.77%
OM growth 5Y0%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1VZ is still creating some value.
1VZ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1VZ has been increased compared to 5 years ago.
Compared to 1 year ago, 1VZ has an improved debt to assets ratio.
2.2 Solvency
1VZ has an Altman-Z score of 1.25. This is a bad value and indicates that 1VZ is not financially healthy and even has some risk of bankruptcy.
1VZ has a Altman-Z score of 1.25. This is comparable to the rest of the industry: 1VZ outperforms 53.33% of its industry peers.
1VZ has a debt to FCF ratio of 7.61. This is a slightly negative value and a sign of low solvency as 1VZ would need 7.61 years to pay back of all of its debts.
1VZ has a Debt to FCF ratio of 7.61. This is comparable to the rest of the industry: 1VZ outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that 1VZ has dependencies on debt financing.
1VZ has a worse Debt to Equity ratio (1.22) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 7.61 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.21
WACC6.11%
2.3 Liquidity
1VZ has a Current Ratio of 0.63. 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 has a worse Current ratio (0.63) than 70.00% of its industry peers.
A Quick Ratio of 0.59 indicates that 1VZ may have some problems paying its short term obligations.
1VZ has a worse Quick ratio (0.59) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
1VZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.55%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
1VZ shows a small growth in Revenue. In the last year, the Revenue has grown by 0.61%.
Measured over the past years, 1VZ shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
EPS 1Y (TTM)-2.55%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.85%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.57%
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 4.26% on average per year.
Based on estimates for the next years, 1VZ will show a small growth in Revenue. The Revenue will grow by 1.81% on average per year.
EPS Next Y4.8%
EPS Next 2Y4.49%
EPS Next 3Y4.73%
EPS Next 5Y4.26%
Revenue Next Year1.57%
Revenue Next 2Y1.83%
Revenue Next 3Y1.88%
Revenue Next 5Y1.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
1VZ is valuated reasonably with a Price/Earnings ratio of 9.28.
86.67% of the companies in the same industry are more expensive than 1VZ, based on the Price/Earnings ratio.
1VZ is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.87, the valuation of 1VZ can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1VZ is valued cheaper than 86.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.20. 1VZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1VZ.
Based on the Price/Free Cash Flow ratio, 1VZ is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1VZ does not grow enough to justify the current Price/Earnings ratio.
1VZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)N/A
EPS Next 2Y4.49%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 6.31%, which is a nice return.
1VZ's Dividend Yield is a higher than the industry average which is at 4.82.
Compared to an average S&P500 Dividend Yield of 2.45, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
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
64.26% of the earnings are spent on dividend by 1VZ. This is not a sustainable payout ratio.
The dividend of 1VZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.26%
EPS Next 2Y4.49%
EPS Next 3Y4.73%
BIT:1VZ (4/22/2025, 7:00:00 PM)
37.505
-2.49 (-6.24%)
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 Cap157.88B
Analysts72.57
Price Target44.71 (19.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly Dividend2.36
Dividend Growth(5Y)1.99%
DP64.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.13%
Min EPS beat(2)-2.47%
Max EPS beat(2)-1.78%
EPS beat(4)0
Avg EPS beat(4)-1.8%
Min EPS beat(4)-2.67%
Max EPS beat(4)-0.26%
EPS beat(8)2
Avg EPS beat(8)-1.36%
EPS beat(12)2
Avg EPS beat(12)-1.68%
EPS beat(16)4
Avg EPS beat(16)-1.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-1.92%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)0
Avg Revenue beat(12)-3%
Revenue beat(16)1
Avg Revenue beat(16)-2.75%
PT rev (1m)-2.4%
PT rev (3m)-2.47%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 8.87 | ||
| P/S | 1.33 | ||
| P/FCF | 9.49 | ||
| P/OCF | 4.86 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.44 |
EPS(TTM)4.04
EY10.77%
EPS(NY)4.23
Fwd EY11.28%
FCF(TTM)3.95
FCFY10.54%
OCF(TTM)7.71
OCFY20.56%
SpS28.15
BVpS20.73
TBVpS-19.08
PEG (NY)1.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 17.64% | ||
| ROCE | 9.91% | ||
| ROIC | 7.4% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 18.92% | ||
| OM | 23.53% | ||
| PM (TTM) | 12.99% | ||
| GM | 60.01% | ||
| FCFM | 14.04% |
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-1.19%
ROICexc growth 3Y-0.4%
ROICexc growth 5Y-4.59%
OM growth 3Y-0.77%
OM growth 5Y0%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 7.61 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 100.55% | ||
| Cap/Sales | 13.35% | ||
| Interest Coverage | 5.76 | ||
| Cash Conversion | 74.41% | ||
| Profit Quality | 108.09% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.25 |
F-Score6
WACC6.11%
ROIC/WACC1.21
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)-2.55%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.85%
EPS Next Y4.8%
EPS Next 2Y4.49%
EPS Next 3Y4.73%
EPS Next 5Y4.26%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.57%
Revenue Next Year1.57%
Revenue Next 2Y1.83%
Revenue Next 3Y1.88%
Revenue Next 5Y1.81%
EBIT growth 1Y8.61%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.44%
EBIT Next Year70.37%
EBIT Next 3Y21.62%
EBIT Next 5Y13.35%
FCF growth 1Y46.55%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-1.5%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%