VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1VZ - US92343V1044 - Common Stock
35.25 EUR
+1.23 (+3.62%)
1VZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. While 1VZ belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1VZ scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
1VZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1VZ has a Return On Assets of 5.11%. This is in the better half of the industry: 1VZ outperforms 78.13% of its industry peers.
1VZ has a better Return On Equity (18.88%) than 71.88% of its industry peers.
With a decent Return On Invested Capital value of 7.38%, 1VZ is doing good in the industry, outperforming 68.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1VZ is in line with the industry average of 7.72%.
The last Return On Invested Capital (7.38%) for 1VZ is above the 3 year average (7.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROIC | 7.38% |
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
Looking at the Profit Margin, with a value of 14.43%, 1VZ belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of 1VZ has declined.
1VZ has a Operating Margin of 23.63%. This is amongst the best in the industry. 1VZ outperforms 84.38% of its industry peers.
1VZ's Operating Margin has been stable in the last couple of years.
The Gross Margin of 1VZ (59.41%) is comparable to the rest of the industry.
1VZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% |
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
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
The debt/assets ratio for 1VZ has been reduced compared to a year ago.
2.2 Solvency
1VZ has an Altman-Z score of 1.30. This is a bad value and indicates that 1VZ is not financially healthy and even has some risk of bankruptcy.
1VZ's Altman-Z score of 1.30 is fine compared to the rest of the industry. 1VZ outperforms 71.88% of its industry peers.
1VZ has a debt to FCF ratio of 7.11. This is a slightly negative value and a sign of low solvency as 1VZ would need 7.11 years to pay back of all of its debts.
1VZ has a better Debt to FCF ratio (7.11) than 62.50% of its industry peers.
1VZ has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1VZ (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.27
WACC5.82%
2.3 Liquidity
1VZ has a Current Ratio of 0.74. 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's Current ratio of 0.74 is in line compared to the rest of the industry. 1VZ outperforms 56.25% of its industry peers.
A Quick Ratio of 0.69 indicates that 1VZ may have some problems paying its short term obligations.
1VZ has a Quick ratio of 0.69. This is comparable to the rest of the industry: 1VZ outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.28% over the past year.
The Earnings Per Share has been decreasing by -0.93% on average over the past years.
1VZ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.42%.
1VZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
EPS 1Y (TTM)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
3.2 Future
1VZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.16% yearly.
1VZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
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 8.77, which indicates a very decent valuation of 1VZ.
90.63% of the companies in the same industry are more expensive than 1VZ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.38. 1VZ is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.31 indicates a reasonable valuation of 1VZ.
81.25% of the companies in the same industry are more expensive than 1VZ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1VZ is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1VZ is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
1VZ's 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)1.64
PEG (5Y)N/A
EPS Next 2Y4.1%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
1VZ has a Yearly Dividend Yield of 6.69%, which is a nice return.
1VZ's Dividend Yield is rather good when compared to the industry average which is at 3.34. 1VZ pays more dividend than 90.63% of the companies in the same industry.
1VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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
1VZ pays out 57.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
1VZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.56%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
BIT:1VZ (12/4/2025, 7:00:00 PM)
35.25
+1.23 (+3.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners68.86%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap148.63B
Revenue(TTM)137.49B
Net Income(TTM)19.84B
Analysts72.73
Price Target40.69 (15.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend2.28
Dividend Growth(5Y)1.99%
DP57.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.2%
Max EPS beat(2)0.01%
EPS beat(4)2
Avg EPS beat(4)-0.75%
Min EPS beat(4)-2.47%
Max EPS beat(4)0.67%
EPS beat(8)2
Avg EPS beat(8)-1.26%
EPS beat(12)4
Avg EPS beat(12)-1.17%
EPS beat(16)4
Avg EPS beat(16)-1.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)0
Avg Revenue beat(16)-2.87%
PT rev (1m)-3.55%
PT rev (3m)-4.11%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.27 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.53 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.17 |
EPS(TTM)4.02
EY11.4%
EPS(NY)4.24
Fwd EY12.03%
FCF(TTM)4.17
FCFY11.84%
OCF(TTM)7.77
OCFY22.06%
SpS27.8
BVpS21.24
TBVpS-17.23
PEG (NY)1.64
PEG (5Y)N/A
Graham Number43.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 18.88% | ||
| ROCE | 9.88% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 18.55% | ||
| OM | 23.63% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.41% | ||
| FCFM | 15.02% |
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%
ROICexgc growth 3Y0.43%
ROICexgc 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 97.11% | ||
| Cap/Sales | 12.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.3 |
F-Score7
WACC5.82%
ROIC/WACC1.27
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)3.28%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.68%
EPS Next Y5.35%
EPS Next 2Y4.1%
EPS Next 3Y3.99%
EPS Next 5Y4.16%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.47%
Revenue Next Year2.56%
Revenue Next 2Y2.14%
Revenue Next 3Y1.68%
Revenue Next 5Y1.61%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.78%
EBIT Next Year71.1%
EBIT Next 3Y21.48%
EBIT Next 5Y13.42%
FCF growth 1Y50.97%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y1.89%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%
VERIZON COMMUNICATIONS INC / 1VZ.MI FAQ
Can you provide the ChartMill fundamental rating for VERIZON COMMUNICATIONS INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1VZ.MI.
What is the valuation status of VERIZON COMMUNICATIONS INC (1VZ.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to VERIZON COMMUNICATIONS INC (1VZ.MI). This can be considered as Undervalued.
Can you provide the profitability details for VERIZON COMMUNICATIONS INC?
VERIZON COMMUNICATIONS INC (1VZ.MI) has a profitability rating of 7 / 10.
What is the valuation of VERIZON COMMUNICATIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERIZON COMMUNICATIONS INC (1VZ.MI) is 8.77 and the Price/Book (PB) ratio is 1.66.
What is the earnings growth outlook for VERIZON COMMUNICATIONS INC?
The Earnings per Share (EPS) of VERIZON COMMUNICATIONS INC (1VZ.MI) is expected to grow by 5.35% in the next year.