VERIZON COMMUNICATIONS INC (1VZ.MI) Fundamental Analysis & Valuation

BIT:1VZ • US92343V1044

Current stock price

44.335 EUR
+2.82 (+6.79%)
Last:

This 1VZ.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. 1VZ.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1VZ was profitable.
  • In the past year 1VZ had a positive cash flow from operations.
  • Of the past 5 years 1VZ 4 years were profitable.
  • Of the past 5 years 1VZ 4 years had a positive operating cash flow.
1VZ.MI Yearly Net Income VS EBIT VS OCF VS FCF1VZ.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B

1.2 Ratios

  • 1VZ has a better Return On Assets (5.11%) than 83.87% of its industry peers.
  • 1VZ has a Return On Equity of 18.88%. This is amongst the best in the industry. 1VZ outperforms 83.87% of its industry peers.
  • 1VZ has a Return On Invested Capital of 7.38%. This is in the better half of the industry: 1VZ outperforms 77.42% 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 7.19%.
  • The 3 year average ROIC (7.15%) for 1VZ is below the current ROIC(7.38%), indicating increased profibility in the last year.
Industry RankSector 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%
1VZ.MI Yearly ROA, ROE, ROIC1VZ.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • 1VZ has a better Profit Margin (14.43%) than 87.10% of its industry peers.
  • 1VZ's Profit Margin has declined in the last couple of years.
  • 1VZ's Operating Margin of 23.63% is amongst the best of the industry. 1VZ outperforms 83.87% 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 in line with its industry peers.
  • In the last couple of years the Gross Margin of 1VZ has remained more or less at the same level.
Industry RankSector 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%
1VZ.MI Yearly Profit, Operating, Gross Margins1VZ.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. 1VZ.MI Health Analysis

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
1VZ.MI Yearly Shares Outstanding1VZ.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
1VZ.MI Yearly Total Debt VS Total Assets1VZ.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.2 Solvency

  • 1VZ has an Altman-Z score of 1.38. This is a bad value and indicates that 1VZ is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.38, 1VZ is doing good in the industry, outperforming 74.19% of the companies in the same industry.
  • 1VZ has a debt to FCF ratio of 7.11. This is a slightly negative value and a sign of low solvency as 1VZ would need 7.11 years to pay back of all of its debts.
  • 1VZ has a better Debt to FCF ratio (7.11) than 64.52% of its industry peers.
  • 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 45.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.21
Debt/FCF 7.11
Altman-Z 1.38
ROIC/WACC1.17
WACC6.28%
1VZ.MI Yearly LT Debt VS Equity VS FCF1VZ.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B

2.3 Liquidity

  • 1VZ has a Current Ratio of 0.74. 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 Current ratio (0.74) which is in line with its industry peers.
  • 1VZ has a Quick Ratio of 0.74. 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 Quick ratio of 0.69 is in line compared to the rest of the industry. 1VZ outperforms 41.94% of its industry peers.
Industry RankSector Rank
Current Ratio 0.74
Quick Ratio 0.69
1VZ.MI Yearly Current Assets VS Current Liabilites1VZ.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. 1VZ.MI Growth Analysis

3.1 Past

  • 1VZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.61%.
  • The Earnings Per Share has been decreasing by -0.79% on average over the past years.
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.96%

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 3.55% on average per year.
  • 1VZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.53% yearly.
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%

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.
1VZ.MI Yearly Revenue VS Estimates1VZ.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B
1VZ.MI Yearly EPS VS Estimates1VZ.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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6

4. 1VZ.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.92, the valuation of 1VZ can be described as reasonable.
  • 1VZ's Price/Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 80.65% of the companies in the same industry.
  • 1VZ is valuated cheaply when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 10.46, which indicates a very decent valuation of 1VZ.
  • Based on the Price/Forward Earnings ratio, 1VZ is valued cheaper than 80.65% 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 22.70.
Industry RankSector Rank
PE 10.92
Fwd PE 10.46
1VZ.MI Price Earnings VS Forward Price Earnings1VZ.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 61.29% of the companies in the same industry are cheaper than 1VZ, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, 1VZ is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.5
EV/EBITDA 7
1VZ.MI Per share data1VZ.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

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)2.48
PEG (5Y)N/A
EPS Next 2Y4.48%
EPS Next 3Y4.49%

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8

5. 1VZ.MI Dividend Analysis

5.1 Amount

  • 1VZ has a Yearly Dividend Yield of 6.93%, which is a nice return.
  • 1VZ's Dividend Yield is rather good when compared to the industry average which is at 3.09. 1VZ pays more dividend than 93.55% of the companies in the same industry.
  • 1VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 6.93%

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 2Y4.48%
EPS Next 3Y4.49%
1VZ.MI Yearly Income VS Free CF VS Dividend1VZ.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B -20B 30B
1VZ.MI Dividend Payout.1VZ.MI Dividend Payout, showing the Payout Ratio.1VZ.MI Dividend Payout.PayoutRetained Earnings

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1VZ.MI Fundamentals: All Metrics, Ratios and Statistics

VERIZON COMMUNICATIONS INC

BIT:1VZ (3/16/2026, 7:00:00 PM)

44.335

+2.82 (+6.79%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30
Earnings (Next)04-21
Inst Owners69.03%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap186.94B
Revenue(TTM)N/A
Net Income(TTM)19.84B
Analysts72.73
Price Target42.02 (-5.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.93%
Yearly Dividend2.24
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)3.26%
PT rev (3m)-0.4%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 10.92
Fwd PE 10.46
P/S 1.58
P/FCF 10.5
P/OCF 5.64
P/B 2.06
P/tB N/A
EV/EBITDA 7
EPS(TTM)4.06
EY9.16%
EPS(NY)4.24
Fwd EY9.56%
FCF(TTM)4.22
FCFY9.53%
OCF(TTM)7.87
OCFY17.74%
SpS28.12
BVpS21.48
TBVpS-17.43
PEG (NY)2.48
PEG (5Y)N/A
Graham Number44.3
Profitability
Industry RankSector 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 RankSector 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 1.38
F-Score7
WACC6.28%
ROIC/WACC1.17
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)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.96%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.36%
EBIT Next 3Y21.63%
EBIT Next 5Y13.55%
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 Fundamental Analysis 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 for 1VZ stock?

ChartMill assigns a valuation rating of 6 / 10 to VERIZON COMMUNICATIONS INC (1VZ.MI). This can be considered as Fairly Valued.


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 earnings growth outlook for VERIZON COMMUNICATIONS INC?

The Earnings per Share (EPS) of VERIZON COMMUNICATIONS INC (1VZ.MI) is expected to grow by 4.4% in the next year.


Can you provide the dividend sustainability for 1VZ stock?

The dividend rating of VERIZON COMMUNICATIONS INC (1VZ.MI) is 8 / 10 and the dividend payout ratio is 57.56%.