VERIZON COMMUNICATIONS INC (VZ) Fundamental Analysis & Valuation

NYSE:VZ • US92343V1044

Current stock price

48.11 USD
+0.08 (+0.17%)
At close:
48.04 USD
-0.07 (-0.15%)
After Hours:

This VZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. VZ Profitability Analysis

1.1 Basic Checks

  • VZ had positive earnings in the past year.
  • In the past year VZ had a positive cash flow from operations.
  • In the past 5 years VZ has always been profitable.
  • VZ had a positive operating cash flow in each of the past 5 years.
VZ Yearly Net Income VS EBIT VS OCF VS FCFVZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • With a decent Return On Assets value of 4.15%, VZ is doing good in the industry, outperforming 70.27% of the companies in the same industry.
  • The Return On Equity of VZ (16.78%) is better than 78.38% of its industry peers.
  • The Return On Invested Capital of VZ (7.33%) is better than 83.78% of its industry peers.
  • 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 6.00%.
Industry RankSector Rank
ROA 4.15%
ROE 16.78%
ROIC 7.33%
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.5%
ROIC(5y)7.52%
VZ Yearly ROA, ROE, ROICVZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.46%, VZ is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
  • VZ's Profit Margin has declined in the last couple of years.
  • VZ has a better Operating Margin (23.53%) than 91.89% 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 (58.91%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of VZ has remained more or less at the same level.
Industry RankSector Rank
OM 23.53%
PM (TTM) 12.46%
GM 58.91%
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%
VZ Yearly Profit, Operating, Gross MarginsVZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. VZ Health Analysis

2.1 Basic Checks

  • VZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • VZ has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for VZ has been increased compared to 5 years ago.
  • Compared to 1 year ago, VZ has a worse debt to assets ratio.
VZ Yearly Shares OutstandingVZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
VZ Yearly Total Debt VS Total AssetsVZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B

2.2 Solvency

  • Based on the Altman-Z score of 1.23, we must say that VZ is in the distress zone and has some risk of bankruptcy.
  • VZ's Altman-Z score of 1.23 is in line compared to the rest of the industry. VZ outperforms 59.46% of its industry peers.
  • The Debt to FCF ratio of VZ is 8.68, which is on the high side as it means it would take VZ, 8.68 years of fcf income to pay off all of its debts.
  • VZ's Debt to FCF ratio of 8.68 is fine compared to the rest of the industry. VZ outperforms 62.16% of its industry peers.
  • A Debt/Equity ratio of 1.40 is on the high side and indicates that VZ has dependencies on debt financing.
  • VZ's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. VZ is outperformed by 67.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF 8.68
Altman-Z 1.23
ROIC/WACC1.14
WACC6.43%
VZ Yearly LT Debt VS Equity VS FCFVZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50B 100B

2.3 Liquidity

  • VZ has a Current Ratio of 0.64. This is a bad value and indicates that VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.64, VZ is doing worse than 89.19% of the companies in the same industry.
  • VZ has a Quick Ratio of 0.64. This is a bad value and indicates that VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.61, VZ is doing worse than 89.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.61
VZ Yearly Current Assets VS Current LiabilitesVZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. VZ Growth Analysis

3.1 Past

  • VZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.67%.
  • The Earnings Per Share has been decreasing by -0.79% on average over the past years.
  • The Revenue has been growing slightly by 2.85% in the past year.
  • The Revenue has been growing slightly by 1.50% on average over the past years.
EPS 1Y (TTM)3.67%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%7.56%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%2.85%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.94% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y7.47%
EPS Next 2Y7.14%
EPS Next 3Y8.05%
EPS Next 5Y8.94%
Revenue Next Year4.51%
Revenue Next 2Y2.9%
Revenue Next 3Y2.23%
Revenue Next 5Y2.02%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
VZ Yearly Revenue VS EstimatesVZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B
VZ Yearly EPS VS EstimatesVZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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7

4. VZ Valuation Analysis

4.1 Price/Earnings Ratio

  • VZ is valuated reasonably with a Price/Earnings ratio of 10.02.
  • Based on the Price/Earnings ratio, VZ is valued cheaper than 89.19% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.64. VZ is valued rather cheaply when compared to this.
  • VZ is valuated reasonably with a Price/Forward Earnings ratio of 8.90.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of VZ indicates a rather cheap valuation: VZ is cheaper than 86.49% of the companies listed in the same industry.
  • VZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.02
Fwd PE 8.9
VZ Price Earnings VS Forward Price EarningsVZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, VZ is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
  • 75.68% of the companies in the same industry are more expensive than VZ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.13
EV/EBITDA 7.1
VZ Per share dataVZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 30

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)1.34
PEG (5Y)N/A
EPS Next 2Y7.14%
EPS Next 3Y8.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. VZ Dividend Analysis

5.1 Amount

  • VZ has a Yearly Dividend Yield of 5.89%, which is a nice return.
  • VZ's Dividend Yield is rather good when compared to the industry average which is at 2.28. VZ pays more dividend than 89.19% of the companies in the same industry.
  • VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 5.89%

5.2 History

  • The dividend of VZ has a limited annual growth rate of 1.96%.
  • 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)1.96%
Div Incr Years21
Div Non Decr Years25
VZ Yearly Dividends per shareVZ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 66.52% of the earnings are spent on dividend by VZ. This is not a sustainable payout ratio.
  • VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.52%
EPS Next 2Y7.14%
EPS Next 3Y8.05%
VZ Yearly Income VS Free CF VS DividendVZ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B -20B 30B
VZ Dividend Payout.VZ Dividend Payout, showing the Payout Ratio.VZ Dividend Payout.PayoutRetained Earnings

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VZ Fundamentals: All Metrics, Ratios and Statistics

VERIZON COMMUNICATIONS INC

NYSE:VZ (5/1/2026, 8:04:00 PM)

After market: 48.04 -0.07 (-0.15%)

48.11

+0.08 (+0.17%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Industry Strength60.25
Industry Growth30.43
Earnings (Last)04-27
Earnings (Next)07-21
Inst Owners68.68%
Inst Owner Change0.03%
Ins Owners0.02%
Ins Owner Change16.16%
Market Cap201.10B
Revenue(TTM)139.15B
Net Income(TTM)17.34B
Analysts73.71
Price Target53.03 (10.23%)
Short Float %2.15%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 5.89%
Yearly Dividend2.72
Dividend Growth(5Y)1.96%
DP66.52%
Div Incr Years21
Div Non Decr Years25
Ex-Date04-10
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.12%
Min EPS beat(2)0.43%
Max EPS beat(2)3.81%
EPS beat(4)3
Avg EPS beat(4)0.76%
Min EPS beat(4)-1.2%
Max EPS beat(4)3.81%
EPS beat(8)4
Avg EPS beat(8)-0.4%
EPS beat(12)6
Avg EPS beat(12)-0.37%
EPS beat(16)6
Avg EPS beat(16)-0.87%
Revenue beat(2)0
Avg Revenue beat(2)-3.03%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.75%
Revenue beat(12)0
Avg Revenue beat(12)-2.89%
Revenue beat(16)0
Avg Revenue beat(16)-2.89%
PT rev (1m)1.53%
PT rev (3m)8.22%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)1.76%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.94%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.38%
Valuation
Industry RankSector Rank
PE 10.02
Fwd PE 8.9
P/S 1.45
P/FCF 10.13
P/OCF 5.39
P/B 1.95
P/tB N/A
EV/EBITDA 7.1
EPS(TTM)4.8
EY9.98%
EPS(NY)5.41
Fwd EY11.24%
FCF(TTM)4.75
FCFY9.88%
OCF(TTM)8.93
OCFY18.57%
SpS33.29
BVpS24.72
TBVpS-23.25
PEG (NY)1.34
PEG (5Y)N/A
Graham Number51.6646 (7.39%)
Profitability
Industry RankSector Rank
ROA 4.15%
ROE 16.78%
ROCE 9.41%
ROIC 7.33%
ROICexc 7.51%
ROICexgc 18.33%
OM 23.53%
PM (TTM) 12.46%
GM 58.91%
FCFM 14.27%
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 Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF 8.68
Debt/EBITDA 2.81
Cap/Depr 93.65%
Cap/Sales 12.56%
Interest Coverage 250
Cash Conversion 72.63%
Profit Quality 114.54%
Current Ratio 0.64
Quick Ratio 0.61
Altman-Z 1.23
F-Score4
WACC6.43%
ROIC/WACC1.14
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)3.67%
EPS 3Y-3.06%
EPS 5Y-0.79%
EPS Q2Q%7.56%
EPS Next Y7.47%
EPS Next 2Y7.14%
EPS Next 3Y8.05%
EPS Next 5Y8.94%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%2.85%
Revenue Next Year4.51%
Revenue Next 2Y2.9%
Revenue Next 3Y2.23%
Revenue Next 5Y2.02%
EBIT growth 1Y2.22%
EBIT growth 3Y1.74%
EBIT growth 5Y1.33%
EBIT Next Year69.38%
EBIT Next 3Y21.39%
EBIT Next 5Y13.18%
FCF growth 1Y47.8%
FCF growth 3Y23.68%
FCF growth 5Y-1.71%
OCF growth 1Y2.95%
OCF growth 3Y0%
OCF growth 5Y-2.32%

VERIZON COMMUNICATIONS INC / VZ Fundamental Analysis 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.


What is the profitability of VZ stock?

VERIZON COMMUNICATIONS INC (VZ) has a profitability rating of 6 / 10.


Can you provide the financial health for VZ stock?

The financial health rating of VERIZON COMMUNICATIONS INC (VZ) is 2 / 10.


What is the earnings growth outlook for VERIZON COMMUNICATIONS INC?

The Earnings per Share (EPS) of VERIZON COMMUNICATIONS INC (VZ) is expected to grow by 7.47% in the next year.