VERIZON COMMUNICATIONS INC (VZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VZ - US92343V1044 - Common Stock
40.575 USD
-0.16 (-0.41%)
VZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 industry peers in the Diversified Telecommunication Services industry. While VZ has a great profitability rating, there are quite some concerns on its financial health. VZ is valued quite cheap, while showing a decent growth score. This is a good combination! Finally VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VZ was profitable.
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
Looking at the Return On Assets, with a value of 5.11%, VZ is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
The Return On Equity of VZ (18.88%) is better than 83.78% of its industry peers.
VZ has a better Return On Invested Capital (7.38%) than 81.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VZ is in line with the industry average of 6.50%.
The 3 year average ROIC (7.15%) for VZ 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
Looking at the Profit Margin, with a value of 14.43%, VZ is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
In the last couple of years the Profit Margin of VZ has declined.
VZ has a better Operating Margin (23.63%) than 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.
VZ has a Gross Margin (59.41%) which is in line with its industry peers.
VZ'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
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
VZ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that VZ is in the distress zone and has some risk of bankruptcy.
VZ's Altman-Z score of 1.29 is fine compared to the rest of the industry. VZ outperforms 75.68% of its industry peers.
The Debt to FCF ratio of VZ is 7.11, which is on the high side as it means it would take VZ, 7.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.11, VZ is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
VZ has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
VZ's Debt to Equity ratio of 1.21 is in line compared to the rest of the industry. VZ outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.24
WACC5.95%
2.3 Liquidity
VZ has a Current Ratio of 0.74. 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 (0.74) is worse than 83.78% of its industry peers.
VZ has a Quick Ratio of 0.74. This is a bad value and indicates that VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
VZ's Quick ratio of 0.69 is on the low side compared to the rest of the industry. VZ is outperformed by 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.28% over the past year.
VZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.93% yearly.
VZ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
Measured over the past years, VZ 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 4.16% on average over the next years.
VZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y5.3%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
EPS Next 5Y4.16%
Revenue Next Year2.57%
Revenue Next 2Y2.19%
Revenue Next 3Y1.76%
Revenue Next 5Y1.61%
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
VZ is valuated reasonably with a Price/Earnings ratio of 8.60.
VZ's Price/Earnings ratio is rather cheap when compared to the industry. VZ is cheaper than 94.59% of the companies in the same industry.
VZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
Based on the Price/Forward Earnings ratio of 8.17, the valuation of VZ can be described as reasonable.
97.30% of the companies in the same industry are more expensive than VZ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VZ to the average of the S&P500 Index (36.21), we can say VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VZ is valued a bit cheaper than 78.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VZ is valued a bit cheaper than 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 6.12 |
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)1.62
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%, VZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.67, VZ pays a better dividend. On top of this VZ pays more dividend than 91.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
5.2 History
The dividend of VZ has a limited annual growth rate of 1.99%.
VZ has been paying a dividend for at least 10 years, so it has a reliable track record.
VZ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.99%
Div Incr Years20
Div Non Decr Years24
5.3 Sustainability
57.56% of the earnings are spent on dividend by VZ. This is a bit on the high side, but may be sustainable.
VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.56%
EPS Next 2Y4.02%
EPS Next 3Y3.79%
NYSE:VZ (12/2/2025, 9:51:10 AM)
40.575
-0.16 (-0.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.92%
Inst Owner Change0.05%
Ins Owners0.02%
Ins Owner Change0%
Market Cap171.08B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target48.15 (18.67%)
Short Float %2.45%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.99% |
Yearly Dividend2.67
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years20
Div Non Decr Years24
Ex-Date
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)-2.04%
PT rev (3m)-2.55%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 8.17 | ||
| P/S | 1.24 | ||
| P/FCF | 8.29 | ||
| P/OCF | 4.45 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.12 |
EPS(TTM)4.72
EY11.63%
EPS(NY)4.97
Fwd EY12.24%
FCF(TTM)4.9
FCFY12.07%
OCF(TTM)9.12
OCFY22.48%
SpS32.61
BVpS24.91
TBVpS-20.22
PEG (NY)1.62
PEG (5Y)N/A
Graham Number51.44
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 | 1.29 |
F-Score7
WACC5.95%
ROIC/WACC1.24
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 5Y4.16%
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 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.37%
EBIT Next 3Y21.64%
EBIT Next 5Y13.42%
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 / 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 for 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 7 / 10.
How financially healthy is VERIZON COMMUNICATIONS INC?
The financial health rating of VERIZON COMMUNICATIONS INC (VZ) is 3 / 10.
Can you provide the dividend sustainability for VZ stock?
The dividend rating of VERIZON COMMUNICATIONS INC (VZ) is 8 / 10 and the dividend payout ratio is 57.56%.