VERIZON COMMUNICATIONS INC (VZ) Stock Fundamental Analysis
NYSE:VZ • US92343V1044
50.14 USD
+1.25 (+2.56%)
At close: Feb 27, 2026
50.0268 USD
-0.11 (-0.23%)
After Hours: 2/27/2026, 8:04:00 PM
Overall VZ gets a fundamental rating of 5 out of 10. We evaluated VZ against 37 industry peers in the Diversified Telecommunication Services industry. VZ 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 VZ. Finally VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- VZ had positive earnings in the past year.
- In the past year VZ had a positive cash flow from operations.
- VZ had positive earnings in each of the past 5 years.
- Each year in the past 5 years VZ had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of VZ (4.25%) is better than 64.86% of its industry peers.
- VZ has a better Return On Equity (16.44%) than 78.38% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.38%, VZ belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
- VZ had an Average Return On Invested Capital over the past 3 years of 7.50%. This is in line with the industry average of 5.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 16.44% | ||
| ROIC | 7.38% |
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
1.3 Margins
- VZ's Profit Margin of 12.43% is fine compared to the rest of the industry. VZ outperforms 70.27% of its industry peers.
- VZ's Profit Margin has declined in the last couple of years.
- VZ's Operating Margin of 23.45% is amongst the best of the industry. VZ outperforms 89.19% of its industry peers.
- In the last couple of years the Operating Margin of VZ has remained more or less at the same level.
- The Gross Margin of VZ (59.07%) is better than 62.16% of its industry peers.
- In the last couple of years the Gross Margin of VZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.45% | ||
| PM (TTM) | 12.43% | ||
| GM | 59.07% |
OM growth 3Y1.41%
OM growth 5Y-0.17%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.32%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VZ is still creating some value.
- The number of shares outstanding for VZ remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, VZ has more shares outstanding
- The debt/assets ratio for VZ is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.34, we must say that VZ is in the distress zone and has some risk of bankruptcy.
- VZ has a Altman-Z score of 1.34. This is in the better half of the industry: VZ outperforms 70.27% of its industry peers.
- The Debt to FCF ratio of VZ is 8.04, which is on the high side as it means it would take VZ, 8.04 years of fcf income to pay off all of its debts.
- VZ has a better Debt to FCF ratio (8.04) than 70.27% of its industry peers.
- VZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
- VZ has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: VZ underperforms 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.11
WACC6.64%
2.3 Liquidity
- VZ has a Current Ratio of 0.91. This is a bad value and indicates that VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of VZ (0.91) is worse than 67.57% of its industry peers.
- VZ has a Quick Ratio of 0.91. This is a bad value and indicates that VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.87, VZ is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- VZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.61%.
- Measured over the past years, VZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.79% on average per year.
- Looking at the last year, VZ shows a small growth in Revenue. The Revenue has grown by 2.52% in the last year.
- VZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.50% yearly.
EPS 1Y (TTM)2.61%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%-0.91%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
3.2 Future
- VZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.48% yearly.
- VZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue Next Year4.54%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.65, the valuation of VZ can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of VZ indicates a rather cheap valuation: VZ is cheaper than 89.19% of the companies listed in the same industry.
- VZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.07.
- A Price/Forward Earnings ratio of 10.01 indicates a reasonable valuation of VZ.
- 91.89% of the companies in the same industry are more expensive than VZ, based on the Price/Forward Earnings ratio.
- VZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
- VZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VZ is cheaper than 67.57% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, VZ is valued a bit cheaper than 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
- VZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of VZ may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)N/A
EPS Next 2Y6.42%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.36%, VZ is a good candidate for dividend investing.
- VZ's Dividend Yield is rather good when compared to the industry average which is at 2.19. VZ pays more dividend than 91.89% of the companies in the same industry.
- VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
- The dividend of VZ has a limited annual growth rate of 1.96%.
- VZ has paid a dividend for at least 10 years, which is a reliable track record.
- VZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.96%
Div Incr Years20
Div Non Decr Years24
5.3 Sustainability
- 66.85% of the earnings are spent on dividend by VZ. This is not a sustainable payout ratio.
- The dividend of VZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.85%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
50.14
+1.25 (+2.56%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30 2026-01-30/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners69.03%
Inst Owner Change-0.29%
Ins Owners0.01%
Ins Owner Change5.83%
Market Cap211.44B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.57
Price Target51.29 (2.29%)
Short Float %2.61%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend2.72
Dividend Growth(5Y)1.96%
DP66.85%
Div Incr Years20
Div Non Decr Years24
Ex-Date04-10 2026-04-10 (0.7075)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)-0.02%
Min EPS beat(4)-1.2%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-0.91%
EPS beat(12)5
Avg EPS beat(12)-0.91%
EPS beat(16)5
Avg EPS beat(16)-1.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.71%
Revenue beat(12)0
Avg Revenue beat(12)-2.96%
Revenue beat(16)0
Avg Revenue beat(16)-2.82%
PT rev (1m)4.67%
PT rev (3m)6.51%
EPS NQ rev (1m)2.45%
EPS NQ rev (3m)2%
EPS NY rev (1m)1.87%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 10.01 | ||
| P/S | 1.53 | ||
| P/FCF | 10.75 | ||
| P/OCF | 5.69 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)4.71
EY9.39%
EPS(NY)5.01
Fwd EY9.99%
FCF(TTM)4.67
FCFY9.31%
OCF(TTM)8.81
OCFY17.56%
SpS32.77
BVpS24.77
TBVpS-20.36
PEG (NY)1.67
PEG (5Y)N/A
Graham Number51.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 16.44% | ||
| ROCE | 9.48% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.82% | ||
| ROICexgc | 19.05% | ||
| OM | 23.45% | ||
| PM (TTM) | 12.43% | ||
| GM | 59.07% | ||
| FCFM | 14.24% |
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
ROICexc(3y)7.69%
ROICexc(5y)7.67%
ROICexgc(3y)18.88%
ROICexgc(5y)18.72%
ROCE(3y)9.63%
ROCE(5y)9.66%
ROICexgc growth 3Y2.91%
ROICexgc growth 5Y0.1%
ROICexc growth 3Y2.18%
ROICexc growth 5Y-3.34%
OM growth 3Y1.41%
OM growth 5Y-0.17%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.32%
GM growth 5Y-0.34%
F-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 95.16% | ||
| Cap/Sales | 12.64% | ||
| Interest Coverage | 5.61 | ||
| Cash Conversion | 73.17% | ||
| Profit Quality | 114.57% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.34 |
F-Score4
WACC6.64%
ROIC/WACC1.11
Cap/Depr(3y)111.69%
Cap/Depr(5y)182.07%
Cap/Sales(3y)14.77%
Cap/Sales(5y)22.93%
Profit Quality(3y)111.28%
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 Y6.36%
EPS Next 2Y6.42%
EPS Next 3Y7.46%
EPS Next 5Y7.48%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year4.54%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%
EBIT growth 1Y2.18%
EBIT growth 3Y1.74%
EBIT growth 5Y1.33%
EBIT Next Year69.4%
EBIT Next 3Y21.36%
EBIT Next 5Y12.97%
FCF growth 1Y3.98%
FCF growth 3Y23.68%
FCF growth 5Y-1.71%
OCF growth 1Y0.61%
OCF growth 3Y0%
OCF growth 5Y-2.32%
VERIZON COMMUNICATIONS INC / VZ FAQ
What is the fundamental rating for VZ stock?
ChartMill assigns a fundamental rating of 5 / 10 to VZ.
What is the valuation status of VERIZON COMMUNICATIONS INC (VZ) stock?
ChartMill assigns a valuation rating of 7 / 10 to VERIZON COMMUNICATIONS INC (VZ). This can be considered as Undervalued.
Can you provide the profitability details for VERIZON COMMUNICATIONS INC?
VERIZON COMMUNICATIONS INC (VZ) has a profitability rating of 6 / 10.
What is the financial health of VERIZON COMMUNICATIONS INC (VZ) stock?
The financial health rating of VERIZON COMMUNICATIONS INC (VZ) is 2 / 10.
How sustainable is the dividend of VERIZON COMMUNICATIONS INC (VZ) stock?
The dividend rating of VERIZON COMMUNICATIONS INC (VZ) is 8 / 10 and the dividend payout ratio is 66.85%.