VERIZON COMMUNICATIONS INC (VZ) Fundamental Analysis & Valuation

NYSE:VZ • US92343V1044

Current stock price

50.52 USD
-0.45 (-0.88%)
At close:
50.4554 USD
-0.06 (-0.13%)
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

  • In the past year VZ was profitable.
  • VZ had a positive operating cash flow in the past year.
  • 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 4.25%, VZ is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • With a decent Return On Equity value of 16.44%, VZ is doing good in the industry, outperforming 78.38% of the companies in the same industry.
  • VZ has a better Return On Invested Capital (7.38%) than 83.78% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for VZ is in line with the industry average of 5.58%.
Industry RankSector 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%
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

  • The Profit Margin of VZ (12.43%) is better than 72.97% of its industry peers.
  • In the last couple of years the Profit Margin of VZ has declined.
  • The Operating Margin of VZ (23.45%) is better 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.
  • VZ's Gross Margin of 59.07% is in line compared to the rest of the industry. VZ outperforms 59.46% 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 RankSector 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%
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. VZ Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VZ is 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 worse debt/assets ratio than last year.
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 1.35, we must say that VZ is in the distress zone and has some risk of bankruptcy.
  • VZ's Altman-Z score of 1.35 is fine compared to the rest of the industry. VZ outperforms 72.97% 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.
  • Looking at the Debt to FCF ratio, with a value of 8.04, VZ is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
  • VZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
  • VZ has a worse Debt to Equity ratio (1.34) than 64.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 8.04
Altman-Z 1.35
ROIC/WACC1.15
WACC6.42%
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

  • A Current Ratio of 0.91 indicates that VZ may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.91, VZ is doing worse than 67.57% of the companies in the same industry.
  • A Quick Ratio of 0.87 indicates that VZ may have some problems paying its short term obligations.
  • The Quick ratio of VZ (0.87) is worse than 70.27% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.87
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

More info and screens

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

4

3. VZ Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.61% over the past year.
  • The Earnings Per Share has been decreasing by -0.79% on average over the past years.
  • Looking at the last year, VZ shows a small growth in Revenue. The Revenue has grown by 2.52% in the last year.
  • Measured over the past years, VZ shows a small growth in Revenue. The Revenue has been growing by 1.50% on average per year.
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 Y7.63%
EPS Next 2Y7.25%
EPS Next 3Y8.19%
EPS Next 5Y7.48%
Revenue Next Year4.54%
Revenue Next 2Y2.88%
Revenue Next 3Y2.25%
Revenue Next 5Y1.91%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

7

4. VZ Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.73, the valuation of VZ can be described as reasonable.
  • Based on the Price/Earnings ratio, VZ is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of VZ to the average of the S&P500 Index (26.11), we can say VZ is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 9.97, the valuation of VZ can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, VZ is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
  • VZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.73
Fwd PE 9.97
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

  • 62.16% of the companies in the same industry are more expensive than VZ, based on the Enterprise Value to EBITDA ratio.
  • 64.86% 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 10.83
EV/EBITDA 6.98
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

  • The 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)1.41
PEG (5Y)N/A
EPS Next 2Y7.25%
EPS Next 3Y8.19%

More info and screens

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

8

5. VZ Dividend Analysis

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 2.17. 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 1.91.
Industry RankSector 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.96%
Div Incr Years20
Div Non Decr Years24
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

  • VZ pays out 66.85% of its income as dividend. This is not a sustainable payout ratio.
  • VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.85%
EPS Next 2Y7.25%
EPS Next 3Y8.19%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

VZ Fundamentals: All Metrics, Ratios and Statistics

VERIZON COMMUNICATIONS INC

NYSE:VZ (3/17/2026, 8:04:00 PM)

After market: 50.4554 -0.06 (-0.13%)

50.52

-0.45 (-0.88%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-30
Earnings (Next)04-21
Inst Owners68.63%
Inst Owner Change-0.21%
Ins Owners0.01%
Ins Owner Change16.16%
Market Cap213.08B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts73.14
Price Target51.29 (1.52%)
Short Float %2.71%
Short Ratio3.47
Dividend
Industry RankSector 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
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)2.12%
PT rev (3m)6.51%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)1.86%
EPS NY rev (1m)1.19%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)2.76%
Valuation
Industry RankSector Rank
PE 10.73
Fwd PE 9.97
P/S 1.54
P/FCF 10.83
P/OCF 5.74
P/B 2.04
P/tB N/A
EV/EBITDA 6.98
EPS(TTM)4.71
EY9.32%
EPS(NY)5.07
Fwd EY10.03%
FCF(TTM)4.67
FCFY9.23%
OCF(TTM)8.81
OCFY17.43%
SpS32.76
BVpS24.77
TBVpS-20.36
PEG (NY)1.41
PEG (5Y)N/A
Graham Number51.23
Profitability
Industry RankSector 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 RankSector 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 1.35
F-Score4
WACC6.42%
ROIC/WACC1.15
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 Y7.63%
EPS Next 2Y7.25%
EPS Next 3Y8.19%
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 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.


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%.