VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Euronext Milan - US92343V1044 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1VZ. 1VZ was compared to 32 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
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
Looking at the Return On Assets, with a value of 4.68%, 1VZ is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
1VZ has a Return On Equity of 17.66%. This is in the better half of the industry: 1VZ outperforms 78.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.49%, 1VZ is in the better half of 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 last Return On Invested Capital (7.49%) for 1VZ is above the 3 year average (7.15%), which is a sign of increasing profitability.
| 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
1VZ's Profit Margin of 13.14% is amongst the best of the industry. 1VZ outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of 1VZ has declined.
Looking at the Operating Margin, with a value of 23.68%, 1VZ belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
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 (60.02%) which 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 | 23.68% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1VZ is still 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.
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.
Looking at the Altman-Z score, with a value of 1.29, 1VZ is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Debt to FCF ratio of 1VZ is 7.12, which is on the high side as it means it would take 1VZ, 7.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.12, 1VZ is doing good in 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.
Looking at the Debt to Equity ratio, with a value of 1.20, 1VZ is doing worse than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.12 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.19
WACC6.28%
2.3 Liquidity
A Current Ratio of 0.61 indicates that 1VZ may have some problems paying its short term obligations.
1VZ's Current ratio of 0.61 is on the low side compared to the rest of the industry. 1VZ is outperformed by 78.13% of its industry peers.
A Quick Ratio of 0.58 indicates that 1VZ may have some problems paying its short term obligations.
The Quick ratio of 1VZ (0.58) is worse than 81.25% of its industry peers.
| 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.
The Revenue has been growing slightly by 0.44% on average over the past years.
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
Based on estimates for the next years, 1VZ will show a small growth in Earnings Per Share. The EPS will grow by 4.26% on average per year.
The Revenue is expected to grow by 1.81% on average over the next years.
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
1VZ is valuated reasonably with a Price/Earnings ratio of 9.39.
84.38% of the companies in the same industry are more expensive than 1VZ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.25, 1VZ is valued rather cheaply.
A Price/Forward Earnings ratio of 8.68 indicates a reasonable valuation of 1VZ.
Based on the Price/Forward Earnings ratio, 1VZ is valued cheaper than 84.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1VZ to the average of the S&P500 Index (22.15), we can say 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1VZ.
75.00% of the companies in the same industry are more expensive than 1VZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 6.48 |
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
1VZ has a Yearly Dividend Yield of 6.26%, which is a nice return.
Compared to an average industry Dividend Yield of 4.30, 1VZ pays a better dividend. On top of this 1VZ pays more dividend than 93.75% 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 2.40.
| 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 | 9.39 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.35 | ||
| P/FCF | 9.08 | ||
| P/OCF | 4.87 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.48 |
EPS(TTM)4.1
EY10.65%
EPS(NY)4.44
Fwd EY11.52%
FCF(TTM)4.24
FCFY11.02%
OCF(TTM)7.91
OCFY20.53%
SpS28.45
BVpS21.18
TBVpS-18.86
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
WACC6.28%
ROIC/WACC1.19
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%