VERIZON COMMUNICATIONS INC (1VZ.MI) Stock Fundamental Analysis
BIT:1VZ - Euronext Milan - US92343V1044 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1VZ. 1VZ was compared to 29 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 correct valuation and a medium growth rate. Finally 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.
1VZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1VZ has a better Return On Assets (4.55%) than 76.67% of its industry peers.
Looking at the Return On Equity, with a value of 17.64%, 1VZ is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.40%, 1VZ is in the better half of the industry, outperforming 70.00% 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 7.55%.
The 3 year average ROIC (7.15%) for 1VZ is below the current ROIC(7.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 17.64% | ||
| ROIC | 7.4% |
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
1VZ has a better Profit Margin (12.99%) than 80.00% of its industry peers.
1VZ's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 23.53%, 1VZ belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of 1VZ has remained more or less at the same level.
1VZ has a Gross Margin (60.01%) which is comparable to the rest of the 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 | 23.53% | ||
| PM (TTM) | 12.99% | ||
| GM | 60.01% |
OM growth 3Y-0.77%
OM growth 5Y0%
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.
Compared to 1 year ago, 1VZ has about the same amount of shares outstanding.
Compared to 5 years ago, 1VZ has more shares outstanding
Compared to 1 year ago, 1VZ has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that 1VZ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.27, 1VZ perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
The Debt to FCF ratio of 1VZ is 7.61, which is on the high side as it means it would take 1VZ, 7.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.61, 1VZ is doing good in the industry, outperforming 63.33% of the companies in the same industry.
1VZ has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
1VZ has a Debt to Equity ratio of 1.22. This is in the lower half of the industry: 1VZ underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 7.61 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.11
WACC6.67%
2.3 Liquidity
A Current Ratio of 0.63 indicates that 1VZ may have some problems paying its short term obligations.
1VZ's Current ratio of 0.63 is on the low side compared to the rest of the industry. 1VZ is outperformed by 66.67% of its industry peers.
1VZ has a Quick Ratio of 0.63. 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 Quick ratio of 0.59. This is in the lower half of the industry: 1VZ underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for 1VZ have decreased by -2.55% in the last year.
Measured over the past years, 1VZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.93% on average per year.
The Revenue has been growing slightly by 0.61% in the past year.
Measured over the past years, 1VZ shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
EPS 1Y (TTM)-2.55%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.85%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.57%
3.2 Future
1VZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.37% yearly.
Based on estimates for the next years, 1VZ will show a small growth in Revenue. The Revenue will grow by 1.63% on average per year.
EPS Next Y5.02%
EPS Next 2Y4.68%
EPS Next 3Y4.73%
EPS Next 5Y4.37%
Revenue Next Year1.85%
Revenue Next 2Y1.86%
Revenue Next 3Y1.94%
Revenue Next 5Y1.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.78, the valuation of 1VZ can be described as very reasonable.
1VZ's Price/Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1VZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.32, the valuation of 1VZ can be described as very reasonable.
1VZ's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1VZ is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1VZ to the average of the S&P500 Index (22.10), we can say 1VZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
1VZ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1VZ is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1VZ may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y4.68%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.13%, 1VZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.01, 1VZ pays a bit more dividend than its industry peers.
1VZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
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
64.26% 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.
DP64.26%
EPS Next 2Y4.68%
EPS Next 3Y4.73%
BIT:1VZ (3/3/2025, 7:00:00 PM)
41.385
-0.18 (-0.43%)
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 Cap174.22B
Analysts73.71
Price Target45.8 (10.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend2.46
Dividend Growth(5Y)1.99%
DP64.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.13%
Min EPS beat(2)-2.47%
Max EPS beat(2)-1.78%
EPS beat(4)0
Avg EPS beat(4)-1.8%
Min EPS beat(4)-2.67%
Max EPS beat(4)-0.26%
EPS beat(8)2
Avg EPS beat(8)-1.36%
EPS beat(12)2
Avg EPS beat(12)-1.68%
EPS beat(16)4
Avg EPS beat(16)-1.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-1.92%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)0
Avg Revenue beat(12)-3%
Revenue beat(16)1
Avg Revenue beat(16)-2.75%
PT rev (1m)3.17%
PT rev (3m)2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 9.32 | ||
| P/S | 1.4 | ||
| P/FCF | 10 | ||
| P/OCF | 5.12 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.63 |
EPS(TTM)4.23
EY10.22%
EPS(NY)4.44
Fwd EY10.73%
FCF(TTM)4.14
FCFY10%
OCF(TTM)8.08
OCFY19.51%
SpS29.49
BVpS21.71
TBVpS-19.99
PEG (NY)1.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 17.64% | ||
| ROCE | 9.91% | ||
| ROIC | 7.4% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 18.92% | ||
| OM | 23.53% | ||
| PM (TTM) | 12.99% | ||
| GM | 60.01% | ||
| FCFM | 14.04% |
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-1.19%
ROICexc growth 3Y-0.4%
ROICexc growth 5Y-4.59%
OM growth 3Y-0.77%
OM growth 5Y0%
PM growth 3Y-7.69%
PM growth 5Y-2.33%
GM growth 3Y1.22%
GM growth 5Y0.51%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 7.61 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 100.55% | ||
| Cap/Sales | 13.35% | ||
| Interest Coverage | 5.76 | ||
| Cash Conversion | 74.41% | ||
| Profit Quality | 108.09% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.27 |
F-Score6
WACC6.67%
ROIC/WACC1.11
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)-2.55%
EPS 3Y-5.27%
EPS 5Y-0.93%
EPS Q2Q%1.85%
EPS Next Y5.02%
EPS Next 2Y4.68%
EPS Next 3Y4.73%
EPS Next 5Y4.37%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y0.29%
Revenue growth 5Y0.44%
Sales Q2Q%1.57%
Revenue Next Year1.85%
Revenue Next 2Y1.86%
Revenue Next 3Y1.94%
Revenue Next 5Y1.63%
EBIT growth 1Y8.61%
EBIT growth 3Y-0.48%
EBIT growth 5Y0.44%
EBIT Next Year70.64%
EBIT Next 3Y21.39%
EBIT Next 5Y13.6%
FCF growth 1Y46.55%
FCF growth 3YN/A
FCF growth 5Y2.28%
OCF growth 1Y-1.5%
OCF growth 3Y-2.27%
OCF growth 5Y0.64%