VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Euronext Milan - US92343V1044 - Common Stock - Currency: EUR
Taking everything into account, 1VZ scores 5 out of 10 in our fundamental rating. 1VZ was compared to 27 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 has a decent growth rate and is not valued too expensively. 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.
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 77.78% of the companies in the same industry.
1VZ has a Return On Equity of 17.66%. This is in the better half of the industry: 1VZ outperforms 77.78% of its industry peers.
The Return On Invested Capital of 1VZ (7.49%) is better than 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1VZ is in line with the industry average of 7.76%.
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
1VZ has a better Profit Margin (13.14%) than 85.19% of its industry peers.
1VZ's Profit Margin has declined in the last couple of years.
1VZ has a better Operating Margin (23.68%) than 88.89% of its industry peers.
1VZ's Operating Margin has been stable in the last couple of years.
The Gross Margin of 1VZ (60.02%) 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 | 23.68% | ||
| 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.
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.
The debt/assets ratio for 1VZ has been reduced compared to a year ago.
2.2 Solvency
1VZ has an Altman-Z score of 1.29. This is a bad value and indicates that 1VZ is not financially healthy and even has some risk of bankruptcy.
1VZ's Altman-Z score of 1.29 is in line compared to the rest of the industry. 1VZ outperforms 55.56% of its industry peers.
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.
1VZ has a Debt to FCF ratio (7.12) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that 1VZ has dependencies on debt financing.
With a Debt to Equity ratio value of 1.20, 1VZ is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.12 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.19
WACC6.27%
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 has a worse Current ratio (0.61) than 77.78% 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.
1VZ has a worse Quick ratio (0.58) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for 1VZ have decreased by -0.64% in the last year.
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.
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 Y5.15%
EPS Next 2Y4.22%
EPS Next 3Y4.24%
EPS Next 5Y4.26%
Revenue Next Year1.97%
Revenue Next 2Y1.88%
Revenue Next 3Y1.73%
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
Based on the Price/Earnings ratio of 9.34, the valuation of 1VZ can be described as reasonable.
Based on the Price/Earnings ratio, 1VZ is valued cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. 1VZ is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.68, the valuation of 1VZ can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1VZ indicates a rather cheap valuation: 1VZ is cheaper than 85.19% of the companies listed 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| 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 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.04 | ||
| EV/EBITDA | 6.47 |
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)1.82
PEG (5Y)N/A
EPS Next 2Y4.22%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 6.25%, which is a nice return.
1VZ's Dividend Yield is rather good when compared to the industry average which is at 4.71. 1VZ pays more dividend than 85.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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
63.59% of the earnings are spent on dividend by 1VZ. 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 2Y4.22%
EPS Next 3Y4.24%
BIT:1VZ (6/24/2025, 7:00:00 PM)
36.63
-1.7 (-4.44%)
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 Cap154.43B
Analysts73.71
Price Target42.64 (16.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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)-2.2%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
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)-4.61%
PT rev (3m)-3.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.35 | ||
| P/FCF | 9.04 | ||
| P/OCF | 4.85 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)3.92
EY10.7%
EPS(NY)4.22
Fwd EY11.52%
FCF(TTM)4.05
FCFY11.06%
OCF(TTM)7.55
OCFY20.62%
SpS27.17
BVpS20.23
TBVpS-18.01
PEG (NY)1.82
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
WACC6.27%
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 Y5.15%
EPS Next 2Y4.22%
EPS Next 3Y4.24%
EPS Next 5Y4.26%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.53%
Revenue Next Year1.97%
Revenue Next 2Y1.88%
Revenue Next 3Y1.73%
Revenue Next 5Y1.81%
EBIT growth 1Y5.56%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.91%
EBIT Next 3Y21.43%
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%