VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Borsa Italiana Milan - US92343V1044 - Common Stock - Currency: EUR
1VZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. While 1VZ is still in line with the averages on profitability rating, there are concerns on its financial health. 1VZ is not valued too expensively and it also shows a decent growth rate. Finally 1VZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1VZ had positive earnings in the past year.
In the past year 1VZ had a positive cash flow from operations.
Each year in the past 5 years 1VZ has been profitable.
In the past 5 years 1VZ always reported a positive cash flow from operatings.
1.2 Ratios
1VZ's Return On Assets of 2.57% is in line compared to the rest of the industry. 1VZ outperforms 53.57% of its industry peers.
1VZ has a Return On Equity (10.17%) which is in line with its industry peers.
1VZ has a Return On Invested Capital of 7.25%. This is in the better half of the industry: 1VZ outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1VZ is in line with the industry average of 7.24%.
The last Return On Invested Capital (7.25%) for 1VZ is above the 3 year average (7.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 10.17% | ||
| ROIC | 7.25% |
ROA(3y)4.89%
ROA(5y)5.38%
ROE(3y)20.95%
ROE(5y)24.1%
ROIC(3y)7.07%
ROIC(5y)7.73%
1.3 Margins
With a decent Profit Margin value of 7.30%, 1VZ is doing good in the industry, outperforming 60.71% of the companies in the same industry.
1VZ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 23.29%, 1VZ belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
1VZ's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 60.09%, 1VZ is in the better half of the industry, outperforming 60.71% 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 | 23.29% | ||
| PM (TTM) | 7.3% | ||
| GM | 60.09% |
OM growth 3Y-1.6%
OM growth 5Y-0.37%
PM growth 3Y-14.51%
PM growth 5Y-6.09%
GM growth 3Y-0.56%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1VZ is still creating some value.
The number of shares outstanding for 1VZ remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1VZ has more shares outstanding
Compared to 1 year ago, 1VZ has about the same debt to assets ratio.
2.2 Solvency
1VZ has an Altman-Z score of 1.23. 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 1.23. This is in the better half of the industry: 1VZ outperforms 60.71% of its industry peers.
1VZ has a debt to FCF ratio of 10.89. This is a negative value and a sign of low solvency as 1VZ would need 10.89 years to pay back of all of its debts.
1VZ has a Debt to FCF ratio (10.89) which is in line with its industry peers.
1VZ has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
1VZ has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: 1VZ underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 10.89 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.24
WACC5.84%
2.3 Liquidity
1VZ has a Current Ratio of 0.66. 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 Current ratio value of 0.66, 1VZ is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that 1VZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, 1VZ is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
1VZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.19%.
The Revenue has been growing slightly by 0.11% in the past year.
Measured over the past years, 1VZ shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
EPS 1Y (TTM)-5.19%
EPS 3Y-1.31%
EPS 5Y0%
EPS Q2Q%-2.46%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.46%
Revenue growth 5Y0.47%
Sales Q2Q%-0.02%
3.2 Future
The Earnings Per Share is expected to grow by 2.94% on average over the next years.
Based on estimates for the next years, 1VZ will show a small growth in Revenue. The Revenue will grow by 1.62% on average per year.
EPS Next Y0.59%
EPS Next 2Y1.74%
EPS Next 3Y2.37%
EPS Next 5Y2.94%
Revenue Next Year0.71%
Revenue Next 2Y1.29%
Revenue Next 3Y1.44%
Revenue Next 5Y1.62%
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
The Price/Earnings ratio is 8.64, which indicates a very decent valuation of 1VZ.
1VZ's Price/Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 82.14% of the companies in the same industry.
1VZ is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of 1VZ.
1VZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
1VZ's Enterprise Value to EBITDA is on the same level as the industry average.
1VZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1VZ does not grow enough to justify the current Price/Earnings ratio.
1VZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)14.58
PEG (5Y)N/A
EPS Next 2Y1.74%
EPS Next 3Y2.37%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 7.07%, which is a nice return.
Compared to an average industry Dividend Yield of 5.48, 1VZ pays a better dividend. On top of this 1VZ pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 1VZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
5.2 History
The dividend of 1VZ has a limited annual growth rate of 1.97%.
Dividend Growth(5Y)1.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1VZ pays out 114.26% of its income as dividend. This is not a sustainable payout ratio.
1VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP114.26%
EPS Next 2Y1.74%
EPS Next 3Y2.37%
VERIZON COMMUNICATIONS INC
BIT:1VZ (1/31/2025, 7:00:00 PM)
38.185
+0.08 (+0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners64.32%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap160.74B
Analysts72.57
Price Target45.84 (20.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
Yearly Dividend2.62
Dividend Growth(5Y)1.97%
DP114.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.22%
Min EPS beat(2)-2.67%
Max EPS beat(2)-1.78%
EPS beat(4)0
Avg EPS beat(4)-1.77%
Min EPS beat(4)-2.67%
Max EPS beat(4)-0.26%
EPS beat(8)2
Avg EPS beat(8)-1.37%
EPS beat(12)2
Avg EPS beat(12)-1.55%
EPS beat(16)5
Avg EPS beat(16)-1.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-3.21%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-1.53%
Revenue beat(8)0
Avg Revenue beat(8)-3.35%
Revenue beat(12)0
Avg Revenue beat(12)-3.07%
Revenue beat(16)1
Avg Revenue beat(16)-2.77%
PT rev (1m)2.13%
PT rev (3m)9.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.1 | ||
| P/S | 1.24 | ||
| P/FCF | 12.01 | ||
| P/OCF | 4.73 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.34 |
EPS(TTM)4.42
EY11.58%
EPS(NY)4.72
Fwd EY12.35%
FCF(TTM)3.18
FCFY8.32%
OCF(TTM)8.08
OCFY21.16%
SpS30.85
BVpS22.14
TBVpS-21.53
PEG (NY)14.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 10.17% | ||
| ROCE | 9.79% | ||
| ROIC | 7.25% | ||
| ROICexc | 7.37% | ||
| ROICexgc | 18.62% | ||
| OM | 23.29% | ||
| PM (TTM) | 7.3% | ||
| GM | 60.09% | ||
| FCFM | 10.3% |
ROA(3y)4.89%
ROA(5y)5.38%
ROE(3y)20.95%
ROE(5y)24.1%
ROIC(3y)7.07%
ROIC(5y)7.73%
ROICexc(3y)7.13%
ROICexc(5y)7.92%
ROICexgc(3y)17.22%
ROICexgc(5y)17.92%
ROCE(3y)9.55%
ROCE(5y)10.43%
ROICexcg growth 3Y-2.88%
ROICexcg growth 5Y-6.59%
ROICexc growth 3Y-7.92%
ROICexc growth 5Y-7.05%
OM growth 3Y-1.6%
OM growth 5Y-0.37%
PM growth 3Y-14.51%
PM growth 5Y-6.09%
GM growth 3Y-0.56%
GM growth 5Y0.44%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 10.89 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 119.13% | ||
| Cap/Sales | 15.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.5% | ||
| Profit Quality | 141.18% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.23 |
F-Score6
WACC5.84%
ROIC/WACC1.24
Cap/Depr(3y)238.21%
Cap/Depr(5y)189.81%
Cap/Sales(3y)29.56%
Cap/Sales(5y)23.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.19%
EPS 3Y-1.31%
EPS 5Y0%
EPS Q2Q%-2.46%
EPS Next Y0.59%
EPS Next 2Y1.74%
EPS Next 3Y2.37%
EPS Next 5Y2.94%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y1.46%
Revenue growth 5Y0.47%
Sales Q2Q%-0.02%
Revenue Next Year0.71%
Revenue Next 2Y1.29%
Revenue Next 3Y1.44%
Revenue Next 5Y1.62%
EBIT growth 1Y5.74%
EBIT growth 3Y-0.17%
EBIT growth 5Y0.1%
EBIT Next Year60.69%
EBIT Next 3Y19.49%
EBIT Next 5Y12.33%
FCF growth 1Y27.1%
FCF growth 3Y-15.57%
FCF growth 5Y-4.5%
OCF growth 1Y-3.88%
OCF growth 3Y-3.55%
OCF growth 5Y1.76%