VERIZON COMMUNICATIONS INC (VZ) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VZ • US92343V1044
46.25 USD
+1.64 (+3.68%)
At close: Feb 3, 2026
46.1 USD
-0.15 (-0.32%)
After Hours: 2/3/2026, 8:04:00 PM
Taking everything into account, VZ scores 5 out of 10 in our fundamental rating. VZ was compared to 36 industry peers in the Diversified Telecommunication Services industry. VZ has a medium profitability rating, but doesn't score so well on its financial health evaluation. VZ has a decent growth rate and is not valued too expensively. 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
- With a decent Return On Assets value of 4.25%, VZ is doing good in the industry, outperforming 66.67% 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 77.78% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.85%, VZ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for VZ is in line with the industry average of 6.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 16.44% | ||
| ROIC | 6.85% |
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.32%
ROIC(5y)7.41%
1.3 Margins
- With a decent Profit Margin value of 12.43%, VZ is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- In the last couple of years the Profit Margin of VZ has declined.
- Looking at the Operating Margin, with a value of 21.76%, VZ belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
- In the last couple of years the Operating Margin of VZ has declined.
- Looking at the Gross Margin, with a value of 58.92%, VZ is in line with its industry, outperforming 52.78% of the companies in the same industry.
- VZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.76% | ||
| PM (TTM) | 12.43% | ||
| GM | 58.92% |
OM growth 3Y-1.15%
OM growth 5Y-1.68%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.24%
GM growth 5Y-0.39%
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.
- VZ has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for VZ is higher compared to a year ago.
2.2 Solvency
- VZ has an Altman-Z score of 1.28. This is a bad value and indicates that VZ is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.28, VZ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- 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 Debt to FCF ratio of 8.04. This is in the better half of the industry: VZ outperforms 69.44% of its industry peers.
- A Debt/Equity ratio of 1.34 is on the high side and indicates that VZ has dependencies on debt financing.
- The Debt to Equity ratio of VZ (1.34) is worse than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.02
WACC6.73%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that VZ may have some problems paying its short term obligations.
- The Current ratio of VZ (0.91) is worse than 66.67% 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.
- VZ's Quick ratio of 0.87 is on the low side compared to the rest of the industry. VZ is outperformed by 69.44% of its industry peers.
| 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%.
- 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.
- The Revenue has been growing slightly by 1.50% on average over the past years.
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
- Based on estimates for the next years, VZ will show a small growth in Earnings Per Share. The EPS will grow by 3.55% on average per year.
- Based on estimates for the next years, VZ will show a small growth in Revenue. The Revenue will grow by 1.53% on average per year.
EPS Next Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.82, 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 91.67% 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 28.18.
- A Price/Forward Earnings ratio of 9.41 indicates a reasonable valuation of VZ.
- 94.44% of the companies in the same industry are more expensive than VZ, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VZ is valued a bit cheaper than 69.44% of the companies in the same industry.
- 63.89% of the companies in the same industry are more expensive than VZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VZ does not grow enough to justify the current Price/Earnings ratio.
- VZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y4.48%
EPS Next 3Y4.49%
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 2.22. VZ pays more dividend than 91.67% of the companies in the same industry.
- VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| 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 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
5.3 Sustainability
- VZ pays out 66.85% of its income as dividend. 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 2Y4.48%
EPS Next 3Y4.49%
46.25
+1.64 (+3.68%)
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-2.53%
Ins Owners0.01%
Ins Owner Change0%
Market Cap195.01B
Revenue(TTM)138.19B
Net Income(TTM)17.17B
Analysts72.73
Price Target49 (5.95%)
Short Float %N/A
Short RatioN/A
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-Date01-12 2026-01-12 (0.69)
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)1.94%
PT rev (3m)-0.32%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 9.41 | ||
| P/S | 1.41 | ||
| P/FCF | 9.91 | ||
| P/OCF | 5.25 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.76 |
EPS(TTM)4.71
EY10.18%
EPS(NY)4.92
Fwd EY10.63%
FCF(TTM)4.67
FCFY10.09%
OCF(TTM)8.81
OCFY19.04%
SpS32.77
BVpS24.77
TBVpS-20.37
PEG (NY)2.23
PEG (5Y)N/A
Graham Number51.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 16.44% | ||
| ROCE | 8.8% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 17.68% | ||
| OM | 21.76% | ||
| PM (TTM) | 12.43% | ||
| GM | 58.92% | ||
| FCFM | 14.24% |
ROA(3y)3.95%
ROA(5y)4.69%
ROE(3y)15.55%
ROE(5y)19.39%
ROIC(3y)7.32%
ROIC(5y)7.41%
ROICexc(3y)7.5%
ROICexc(5y)7.55%
ROICexgc(3y)18.41%
ROICexgc(5y)18.44%
ROCE(3y)9.4%
ROCE(5y)9.52%
ROICexgc growth 3Y0.32%
ROICexgc growth 5Y-1.42%
ROICexc growth 3Y-0.39%
ROICexc growth 5Y-4.81%
OM growth 3Y-1.15%
OM growth 5Y-1.68%
PM growth 3Y-7.17%
PM growth 5Y-2.18%
GM growth 3Y1.24%
GM growth 5Y-0.39%
F-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 8.04 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 95.16% | ||
| Cap/Sales | 12.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.7% | ||
| Profit Quality | 114.57% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.28 |
F-Score4
WACC6.73%
ROIC/WACC1.02
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 Y4.4%
EPS Next 2Y4.48%
EPS Next 3Y4.49%
EPS Next 5Y3.55%
Revenue 1Y (TTM)2.52%
Revenue growth 3Y0.33%
Revenue growth 5Y1.5%
Sales Q2Q%1.96%
Revenue Next Year2.08%
Revenue Next 2Y1.57%
Revenue Next 3Y1.38%
Revenue Next 5Y1.53%
EBIT growth 1Y-5.19%
EBIT growth 3Y-0.82%
EBIT growth 5Y-0.21%
EBIT Next Year64.6%
EBIT Next 3Y19.95%
EBIT Next 5Y12.49%
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 6 / 10 to VERIZON COMMUNICATIONS INC (VZ). This can be considered as Fairly Valued.
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%.