VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
Europe - BIT:1VZ - US92343V1044 - Common Stock
34.695 EUR
-0.74 (-2.09%)
Overall 1VZ gets a fundamental rating of 5 out of 10. We evaluated 1VZ against 30 industry peers in the Diversified Telecommunication Services industry. 1VZ has an excellent profitability rating, but there are 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.
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 fine compared to the rest of the industry. 1VZ outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 17.65%, 1VZ is doing good in the industry, outperforming 73.33% of the companies in the same industry.
The Return On Invested Capital of 1VZ (7.50%) is better than 70.00% 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 7.72%.
The last Return On Invested Capital (7.50%) for 1VZ is above the 3 year average (7.15%), which is a sign of increasing profitability.
| 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
1VZ's Profit Margin of 13.28% is amongst the best of the industry. 1VZ outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of 1VZ has declined.
1VZ has a better Operating Margin (23.62%) than 86.67% of its industry peers.
1VZ's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.48%, 1VZ is in line with its industry, outperforming 46.67% 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 | 23.62% | ||
| 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.
1VZ has about the same amout of shares outstanding than it did 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 1.27, we must say that 1VZ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1VZ (1.27) is comparable to the rest of the industry.
1VZ has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as 1VZ would need 7.45 years to pay back of all of its debts.
The Debt to FCF ratio of 1VZ (7.45) 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.
1VZ's Debt to Equity ratio of 1.20 is in line compared to the rest of the industry. 1VZ outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.31
WACC5.71%
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.
1VZ has a worse Current ratio (0.64) than 73.33% of its industry peers.
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.
1VZ has a worse Quick ratio (0.60) than 73.33% 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%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.79% 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 1.95% on average per year.
EPS Next Y5.46%
EPS Next 2Y4.5%
EPS Next 3Y4.29%
EPS Next 5Y4.79%
Revenue Next Year2.84%
Revenue Next 2Y2.45%
Revenue Next 3Y2.05%
Revenue Next 5Y1.95%
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
With a Price/Earnings ratio of 8.57, the valuation of 1VZ can be described as very reasonable.
1VZ's Price/Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 90.00% of the companies in the same industry.
1VZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
The Price/Forward Earnings ratio is 8.03, which indicates a very decent valuation of 1VZ.
83.33% of the companies in the same industry are more expensive than 1VZ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1VZ.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1VZ indicates a somewhat cheap valuation: 1VZ is cheaper than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.66 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1VZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)N/A
EPS Next 2Y4.5%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 6.84%, which is a nice return.
Compared to an average industry Dividend Yield of 4.58, 1VZ pays a better dividend. On top of this 1VZ pays more dividend than 93.33% of the companies listed in the same industry.
1VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
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
62.46% 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.
DP62.46%
EPS Next 2Y4.5%
EPS Next 3Y4.29%
BIT:1VZ (10/15/2025, 7:00:00 PM)
34.695
-0.74 (-2.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.92%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap146.29B
Revenue(TTM)137.00B
Net Income(TTM)18.19B
Analysts72.94
Price Target42 (21.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
Yearly Dividend2.29
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)-1.03%
PT rev (3m)-0.73%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.03 | ||
| P/S | 1.24 | ||
| P/FCF | 8.66 | ||
| P/OCF | 4.58 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)4.05
EY11.67%
EPS(NY)4.32
Fwd EY12.45%
FCF(TTM)4.01
FCFY11.55%
OCF(TTM)7.58
OCFY21.85%
SpS27.99
BVpS21.06
TBVpS-17.82
PEG (NY)1.57
PEG (5Y)N/A
Graham Number43.81
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%
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 Turnover0.36
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 | 1.27 |
F-Score7
WACC5.71%
ROIC/WACC1.31
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 Y5.46%
EPS Next 2Y4.5%
EPS Next 3Y4.29%
EPS Next 5Y4.79%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%5.21%
Revenue Next Year2.84%
Revenue Next 2Y2.45%
Revenue Next 3Y2.05%
Revenue Next 5Y1.95%
EBIT growth 1Y5.16%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.37%
EBIT Next 3Y21.64%
EBIT Next 5Y13.82%
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%