VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Euronext Milan - US92343V1044 - Common Stock - Currency: EUR
1VZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 27 industry peers in the Diversified Telecommunication Services industry. While 1VZ has a great profitability rating, there are quite some concerns on its financial health. 1VZ has a decent growth rate and is not valued too expensively. 1VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1VZ had positive earnings in the past year.
1VZ had a positive operating cash flow in the past year.
1VZ had positive earnings in each of the past 5 years.
Each year in the past 5 years 1VZ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1VZ (4.68%) is better than 74.07% of its industry peers.
1VZ has a Return On Equity of 17.66%. This is in the better half of the industry: 1VZ outperforms 74.07% of its industry peers.
With a decent Return On Invested Capital value of 7.49%, 1VZ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1VZ is in line with the industry average of 7.76%.
The 3 year average ROIC (7.15%) for 1VZ is below the current ROIC(7.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 17.66% | ||
| ROIC | 7.49% |
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
The Profit Margin of 1VZ (13.14%) is better than 81.48% of its industry peers.
In the last couple of years the Profit Margin of 1VZ has declined.
1VZ's Operating Margin of 23.68% is amongst the best of the industry. 1VZ outperforms 85.19% of its industry peers.
In the last couple of years the Operating Margin of 1VZ has remained more or less at the same level.
With a Gross Margin value of 60.02%, 1VZ perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
In the last couple of years the Gross Margin of 1VZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.68% | ||
| PM (TTM) | 13.14% | ||
| GM | 60.02% |
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
1VZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1VZ remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1VZ has been increased compared to 5 years ago.
1VZ has a better debt/assets ratio than last year.
2.2 Solvency
1VZ has an Altman-Z score of 1.28. This is a bad value and indicates that 1VZ is not financially healthy and even has some risk of bankruptcy.
1VZ has a Altman-Z score of 1.28. This is comparable to the rest of the industry: 1VZ outperforms 59.26% of its industry peers.
The Debt to FCF ratio of 1VZ is 7.12, which is on the high side as it means it would take 1VZ, 7.12 years of fcf income to pay off all of its debts.
1VZ has a Debt to FCF ratio (7.12) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that 1VZ has dependencies on debt financing.
1VZ has a worse Debt to Equity ratio (1.20) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.12 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.19
WACC6.27%
2.3 Liquidity
1VZ has a Current Ratio of 0.61. This is a bad value and indicates that 1VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
1VZ has a worse Current ratio (0.61) than 81.48% of its industry peers.
1VZ has a Quick Ratio of 0.61. This is a bad value and indicates that 1VZ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.58, 1VZ is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for 1VZ have decreased by -0.64% in the last year.
1VZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.93% yearly.
Looking at the last year, 1VZ shows a small growth in Revenue. The Revenue has grown by 0.93% in the last year.
1VZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
EPS 1Y (TTM)-0.64%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%3.48%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.53%
3.2 Future
1VZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.26% yearly.
The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y5.15%
EPS Next 2Y4.22%
EPS Next 3Y4.24%
EPS Next 5Y4.26%
Revenue Next Year1.97%
Revenue Next 2Y1.88%
Revenue Next 3Y1.73%
Revenue Next 5Y1.81%
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
1VZ is valuated reasonably with a Price/Earnings ratio of 9.25.
1VZ's Price/Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 85.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1VZ to the average of the S&P500 Index (27.15), we can say 1VZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.60, the valuation of 1VZ can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1VZ is valued cheaper than 81.48% of the companies in the same industry.
1VZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
1VZ's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1VZ indicates a somewhat cheap valuation: 1VZ is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 6.44 |
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 1VZ may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)N/A
EPS Next 2Y4.22%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.25%, 1VZ is a good candidate for dividend investing.
1VZ's Dividend Yield is rather good when compared to the industry average which is at 4.71. 1VZ pays more dividend than 85.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
The dividend of 1VZ has a limited annual growth rate of 1.99%.
Dividend Growth(5Y)1.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
63.59% of the earnings are spent on dividend by 1VZ. This is not a sustainable payout ratio.
1VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.59%
EPS Next 2Y4.22%
EPS Next 3Y4.24%
BIT:1VZ (6/24/2025, 7:00:00 PM)
36.63
-1.7 (-4.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.92%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap154.43B
Analysts73.71
Price Target42.64 (16.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend2.36
Dividend Growth(5Y)1.99%
DP63.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.9%
Min EPS beat(2)-2.47%
Max EPS beat(2)0.67%
EPS beat(4)1
Avg EPS beat(4)-1.56%
Min EPS beat(4)-2.67%
Max EPS beat(4)0.67%
EPS beat(8)3
Avg EPS beat(8)-0.94%
EPS beat(12)3
Avg EPS beat(12)-1.41%
EPS beat(16)5
Avg EPS beat(16)-1.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-1.92%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)0
Avg Revenue beat(12)-2.94%
Revenue beat(16)1
Avg Revenue beat(16)-2.78%
PT rev (1m)-4.61%
PT rev (3m)-3.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 8.6 | ||
| P/S | 1.34 | ||
| P/FCF | 8.96 | ||
| P/OCF | 4.81 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.44 |
EPS(TTM)3.96
EY10.81%
EPS(NY)4.26
Fwd EY11.63%
FCF(TTM)4.09
FCFY11.16%
OCF(TTM)7.62
OCFY20.81%
SpS27.42
BVpS20.41
TBVpS-18.18
PEG (NY)1.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 17.66% | ||
| ROCE | 10.03% | ||
| ROIC | 7.49% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 18.89% | ||
| OM | 23.68% | ||
| PM (TTM) | 13.14% | ||
| GM | 60.02% | ||
| FCFM | 14.91% |
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%
ROICexcg growth 3Y0.43%
ROICexcg 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.12 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 96.72% | ||
| Cap/Sales | 12.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | 113.47% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.28 |
F-Score7
WACC6.27%
ROIC/WACC1.19
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)-0.64%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%3.48%
EPS Next Y5.15%
EPS Next 2Y4.22%
EPS Next 3Y4.24%
EPS Next 5Y4.26%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.53%
Revenue Next Year1.97%
Revenue Next 2Y1.88%
Revenue Next 3Y1.73%
Revenue Next 5Y1.81%
EBIT growth 1Y5.56%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year70.91%
EBIT Next 3Y21.43%
EBIT Next 5Y13.35%
FCF growth 1Y55.55%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-2.59%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%