VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
Europe - BIT:1VZ - US92343V1044 - Common Stock
34.02 EUR
-0.56 (-1.62%)
Taking everything into account, 1VZ scores 5 out of 10 in our fundamental rating. 1VZ was compared to 31 industry peers in the Diversified Telecommunication Services industry. 1VZ has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1VZ. Finally 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.
In the past 5 years 1VZ has always been profitable.
Each year in the past 5 years 1VZ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.11%, 1VZ belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
1VZ's Return On Equity of 18.88% is fine compared to the rest of the industry. 1VZ outperforms 74.19% of its industry peers.
1VZ's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. 1VZ outperforms 74.19% 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 7.62%.
The 3 year average ROIC (7.15%) for 1VZ is below the current ROIC(7.38%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of 1VZ (14.43%) is better than 90.32% of its industry peers.
1VZ's Profit Margin has declined in the last couple of years.
The Operating Margin of 1VZ (23.63%) is better than 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.
1VZ has a Gross Margin (59.41%) which is in line with its industry peers.
1VZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
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.
Compared to 1 year ago, 1VZ has an improved debt to assets ratio.
2.2 Solvency
1VZ has an Altman-Z score of 1.28. 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 1.28 is fine compared to the rest of the industry. 1VZ outperforms 64.52% of its industry peers.
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.
With a Debt to FCF ratio value of 7.11, 1VZ perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
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 (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.29
WACC5.72%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 1VZ may have some problems paying its short term obligations.
1VZ has a Current ratio (0.74) which is in line with its industry peers.
A Quick Ratio of 0.69 indicates that 1VZ may have some problems paying its short term obligations.
1VZ has a worse Quick ratio (0.69) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
1VZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.28%.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
1VZ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
Measured over the past years, 1VZ shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
3.2 Future
The Earnings Per Share is expected to grow by 4.31% 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 1.73% on average per year.
EPS Next Y5.3%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
EPS Next 5Y4.31%
Revenue Next Year2.57%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.73%
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 8.38 indicates a reasonable valuation of 1VZ.
Compared to the rest of the industry, the Price/Earnings ratio of 1VZ indicates a rather cheap valuation: 1VZ is cheaper than 93.55% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1VZ to the average of the S&P500 Index (25.91), we can say 1VZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.96, the valuation of 1VZ can be described as very cheap.
Based on the Price/Forward Earnings ratio, 1VZ is valued cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1VZ to the average of the S&P500 Index (34.57), we can say 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1VZ indicates a somewhat cheap valuation: 1VZ is cheaper than 70.97% of the companies listed in the same industry.
1VZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1VZ is cheaper than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
1VZ's 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)1.58
PEG (5Y)N/A
EPS Next 2Y4.02%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.99%, 1VZ is a good candidate for dividend investing.
1VZ's Dividend Yield is rather good when compared to the industry average which is at 4.93. 1VZ pays more dividend than 90.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
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 2Y4.02%
EPS Next 3Y3.79%
BIT:1VZ (11/3/2025, 7:00:00 PM)
34.02
-0.56 (-1.62%)
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 Cap143.44B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target42.19 (24.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
Yearly Dividend2.31
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)0.37%
PT rev (3m)0.14%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.96 | ||
| P/S | 1.21 | ||
| P/FCF | 8.07 | ||
| P/OCF | 4.33 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)4.06
EY11.93%
EPS(NY)4.27
Fwd EY12.56%
FCF(TTM)4.21
FCFY12.39%
OCF(TTM)7.85
OCFY23.07%
SpS28.07
BVpS21.44
TBVpS-17.4
PEG (NY)1.58
PEG (5Y)N/A
Graham Number44.26
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.28 |
F-Score7
WACC5.72%
ROIC/WACC1.29
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)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.3%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
EPS Next 5Y4.31%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.57%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.73%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.37%
EBIT Next 3Y21.64%
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 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 of VERIZON COMMUNICATIONS INC (1VZ.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to VERIZON COMMUNICATIONS INC (1VZ.MI). This can be considered as Undervalued.
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 valuation of VERIZON COMMUNICATIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (1VZ.MI) is 8.38 and the Price/Book (PB) ratio is 1.59.
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 5.3% in the next year.