VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - US92343V1044 - Common Stock
38.845 EUR
+2.41 (+6.63%)
Overall 1VZ gets a fundamental rating of 5 out of 10. We evaluated 1VZ against 31 industry peers in the Diversified Telecommunication Services industry. 1VZ scores excellent on profitability, but there are concerns on its financial health. 1VZ is not valued too expensively and it also shows a decent growth rate. 1VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1VZ was profitable.
In the past year 1VZ had a positive cash flow from operations.
In the past 5 years 1VZ has always been profitable.
In the past 5 years 1VZ always reported a positive cash flow from operatings.
1.2 Ratios
1VZ's Return On Assets of 4.75% is amongst the best of the industry. 1VZ outperforms 80.65% of its industry peers.
1VZ's Return On Equity of 17.65% is fine compared to the rest of the industry. 1VZ outperforms 77.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.50%, 1VZ is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1VZ is in line with the industry average of 7.60%.
The 3 year average ROIC (7.15%) for 1VZ is below the current ROIC(7.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 17.65% | ||
| ROIC | 7.5% |
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
The Profit Margin of 1VZ (13.28%) is better than 83.87% of its industry peers.
1VZ's Profit Margin has declined in the last couple of years.
1VZ's Operating Margin of 23.62% is amongst the best of the industry. 1VZ outperforms 87.10% of its industry peers.
In the last couple of years the Operating Margin of 1VZ has remained more or less at the same level.
The Gross Margin of 1VZ (59.48%) is comparable to the rest of the industry.
1VZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 13.28% | ||
| GM | 59.48% |
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.
The debt/assets ratio for 1VZ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that 1VZ is in the distress zone and has some risk of bankruptcy.
1VZ's Altman-Z score of 1.31 is in line compared to the rest of the industry. 1VZ outperforms 54.84% of its industry peers.
The Debt to FCF ratio of 1VZ is 7.45, which is on the high side as it means it would take 1VZ, 7.45 years of fcf income to pay off all of its debts.
1VZ has a Debt to FCF ratio of 7.45. This is comparable to the rest of the industry: 1VZ outperforms 51.61% of its industry peers.
1VZ has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
1VZ's Debt to Equity ratio of 1.20 is in line compared to the rest of the industry. 1VZ outperforms 48.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.25
WACC6.01%
2.3 Liquidity
1VZ has a Current Ratio of 0.64. This is a bad value and indicates that 1VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.64, 1VZ is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
1VZ has a Quick Ratio of 0.64. This is a bad value and indicates that 1VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1VZ (0.60) is worse than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
1VZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.17%.
Measured over the past years, 1VZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.93% on average per year.
The Revenue has been growing slightly by 2.05% in the past year.
The Revenue has been growing slightly by 0.44% on average over the past years.
EPS 1Y (TTM)2.17%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%6.09%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
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 4.94% on average per year.
1VZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.83% yearly.
EPS Next Y4.89%
EPS Next 2Y3.96%
EPS Next 3Y4.05%
EPS Next 5Y4.94%
Revenue Next Year2.84%
Revenue Next 2Y2.38%
Revenue Next 3Y1.95%
Revenue Next 5Y1.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.59.
90.32% of the companies in the same industry are more expensive than 1VZ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.24. 1VZ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.09, the valuation of 1VZ can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1VZ indicates a rather cheap valuation: 1VZ is cheaper than 87.10% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1VZ to the average of the S&P500 Index (22.81), we can say 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
1VZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1VZ is cheaper than 61.29% of the companies in the same industry.
1VZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1VZ is cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| EV/EBITDA | 6.58 |
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.
The decent profitability rating of 1VZ may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)N/A
EPS Next 2Y3.96%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 6.34%, which is a nice return.
Compared to an average industry Dividend Yield of 4.44, 1VZ pays a better dividend. On top of this 1VZ pays more dividend than 93.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
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 62.46% 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.
DP62.46%
EPS Next 2Y3.96%
EPS Next 3Y4.05%
BIT:1VZ (8/21/2025, 7:00:00 PM)
38.845
+2.41 (+6.63%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.4%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap163.78B
Analysts73.71
Price Target42.13 (8.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
Yearly Dividend2.34
Dividend Growth(5Y)1.99%
DP62.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.34%
Min EPS beat(2)0.01%
Max EPS beat(2)0.67%
EPS beat(4)2
Avg EPS beat(4)-0.89%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-1.05%
EPS beat(12)4
Avg EPS beat(12)-1.09%
EPS beat(16)5
Avg EPS beat(16)-1.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)0
Avg Revenue beat(12)-2.77%
Revenue beat(16)0
Avg Revenue beat(16)-2.84%
PT rev (1m)-1.19%
PT rev (3m)-5.75%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.09 | ||
| P/S | 1.39 | ||
| P/FCF | 9.7 | ||
| P/OCF | 5.12 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)4.05
EY10.43%
EPS(NY)4.27
Fwd EY11%
FCF(TTM)4.01
FCFY10.31%
OCF(TTM)7.58
OCFY19.51%
SpS27.99
BVpS21.06
TBVpS-17.82
PEG (NY)1.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 17.65% | ||
| ROCE | 10.04% | ||
| ROIC | 7.5% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 18.79% | ||
| OM | 23.62% | ||
| PM (TTM) | 13.28% | ||
| GM | 59.48% | ||
| FCFM | 14.31% |
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 | 7.45 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 96.24% | ||
| Cap/Sales | 12.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.41% | ||
| Profit Quality | 107.77% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.31 |
F-Score7
WACC6.01%
ROIC/WACC1.25
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)2.17%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%6.09%
EPS Next Y4.89%
EPS Next 2Y3.96%
EPS Next 3Y4.05%
EPS Next 5Y4.94%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
Revenue Next Year2.84%
Revenue Next 2Y2.38%
Revenue Next 3Y1.95%
Revenue Next 5Y1.83%
EBIT growth 1Y5.16%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.91%
EBIT Next 3Y21.43%
EBIT Next 5Y13.57%
FCF growth 1Y58.54%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-1.06%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%