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 32 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 correct valuation and a medium growth rate. 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.
1VZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.68%, 1VZ is doing good in the industry, outperforming 78.13% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.66%, 1VZ is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.49%, 1VZ is doing good in the industry, outperforming 68.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1VZ is in line with the industry average of 7.75%.
The 3 year average ROIC (7.15%) for 1VZ is below the current ROIC(7.49%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 13.14%, 1VZ belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
1VZ's Profit Margin has declined in the last couple of years.
1VZ has a better Operating Margin (23.68%) than 84.38% of its industry peers.
1VZ's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 60.02%, 1VZ perfoms like the industry average, outperforming 50.00% of the companies in the same 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
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.
Compared to 5 years ago, 1VZ has more shares outstanding
1VZ has a better debt/assets ratio than last year.
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 has a Altman-Z score (1.29) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 7.12, 1VZ is in the better half of the industry, outperforming 62.50% of the companies in the same 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: 65.63% 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/WACC1.18
WACC6.33%
2.3 Liquidity
A Current Ratio of 0.61 indicates that 1VZ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, 1VZ is doing worse than 78.13% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.58, 1VZ is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
1VZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.64%.
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 Y4.9%
EPS Next 2Y4.44%
EPS Next 3Y4.42%
EPS Next 5Y4.26%
Revenue Next Year2.1%
Revenue Next 2Y2.03%
Revenue Next 3Y1.84%
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
A Price/Earnings ratio of 9.44 indicates a reasonable valuation of 1VZ.
Based on the Price/Earnings ratio, 1VZ is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
1VZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
The Price/Forward Earnings ratio is 8.73, which indicates a very decent valuation of 1VZ.
Based on the Price/Forward Earnings ratio, 1VZ is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.20. 1VZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
1VZ's Enterprise Value to EBITDA is on the same level as the industry average.
1VZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1VZ is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.14 | ||
| EV/EBITDA | 6.51 |
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)1.92
PEG (5Y)N/A
EPS Next 2Y4.44%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.26%, 1VZ is a good candidate for dividend investing.
1VZ's Dividend Yield is rather good when compared to the industry average which is at 4.30. 1VZ pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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.
The dividend of 1VZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.59%
EPS Next 2Y4.44%
EPS Next 3Y4.42%
BIT:1VZ (5/22/2025, 7:00:00 PM)
38.51
+1 (+2.68%)
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 Cap162.36B
Analysts73.71
Price Target42.08 (9.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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)-2.21%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
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)-8.12%
PT rev (3m)-8.19%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 8.73 | ||
| P/S | 1.36 | ||
| P/FCF | 9.14 | ||
| P/OCF | 4.9 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.51 |
EPS(TTM)4.08
EY10.59%
EPS(NY)4.41
Fwd EY11.45%
FCF(TTM)4.21
FCFY10.94%
OCF(TTM)7.86
OCFY20.4%
SpS28.26
BVpS21.04
TBVpS-18.73
PEG (NY)1.92
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
WACC6.33%
ROIC/WACC1.18
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 Y4.9%
EPS Next 2Y4.44%
EPS Next 3Y4.42%
EPS Next 5Y4.26%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.53%
Revenue Next Year2.1%
Revenue Next 2Y2.03%
Revenue Next 3Y1.84%
Revenue Next 5Y1.81%
EBIT growth 1Y5.56%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.37%
EBIT Next 3Y21.62%
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%