(VZ) Verizon Communications - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NYSE (USA) | Market Cap: 201.429m USD | Total Return: 17.8% in 12m
Avg Turnover: 882M
EPS Trend: -37.0%
Qual. Beats: 2
Rev. Trend: 86.4%
Qual. Beats: -1
Warnings
No concerns identified
Tailwinds
Garp
Verizon Communications Inc. (VZ) is a global provider of integrated telecommunication services, operating through its Consumer and Business segments. The company delivers wireless and wireline solutions, including broadband, fiber-optic services under the Fios brand, and Fixed Wireless Access (FWA) technology to residential, corporate, and government clients.
The business model relies on high-capital expenditure to maintain extensive physical infrastructure, a characteristic trait of the telecommunications sector which functions as an oligopoly in the United States. Verizon utilizes a multi-channel distribution strategy involving company-owned retail locations, digital platforms, and third-party resellers to manage its large subscriber base.
For a more detailed breakdown of these operational segments, consider reviewing the latest financial metrics on ValueRay.
Headquartered in New York, the firm serves as a primary provider of Internet of Things (IoT) connectivity and managed network security. Its wireless operations include the TracFone brand and wholesale arrangements, while its wireline footprint remains concentrated in the Mid-Atlantic and Northeastern United States.
- Fixed wireless access subscriber growth offsets legacy wireline revenue declines
- High interest rates increase debt servicing costs for capital intensive network infrastructure
- Wireless service pricing power supports consolidated margins amid intense carrier competition
- Dividend yield sustainability remains primary driver for institutional and retail investor sentiment
- Spectrum acquisition costs and 5G deployment capital expenditures pressure free cash flow
| Net Income: 17.3b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.51 > 1.0 |
| NWC/Revenue: -18.08% < 20% (prev -17.53%; Δ -0.55% < -1%) |
| CFO/TA 0.09 > 3% & CFO 37.3b > Net Income 17.3b |
| Net Debt (211b) to EBITDA (48.6b): 4.34 < 3 |
| Current Ratio: 0.64 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.21b) vs 12m ago -0.38% < -2% |
| Gross Margin: 58.85% > 18% (prev 0.47%; Δ 5.84k% > 0.5%) |
| Asset Turnover: 34.86% > 50% (prev 35.57%; Δ -0.71% > 0%) |
| Interest Coverage Ratio: 4.28 > 6 (EBITDA TTM 48.6b / Interest Expense TTM 7.00b) |
| A: -0.06 (Total Current Assets 44.7b - Total Current Liabilities 69.9b) / Total Assets 418b |
| B: 0.23 (Retained Earnings 96.8b / Total Assets 418b) |
| C: 0.08 (EBIT TTM 30.0b / Avg Total Assets 399b) |
| D: 0.30 (Book Value of Equity 94.9b / Total Liabilities 313b) |
| Altman-Z'' = 1.18 = BB |
| DSRI: 0.96 (Receivables 26.7b/27.0b, Revenue 139b/135b) |
| GMI: 0.79 (GM 58.85% / 46.56%) |
| AQI: 0.96 (AQ_t 0.59 / AQ_t-1 0.62) |
| SGI: 1.03 (Revenue 139b / 135b) |
| TATA: -0.05 (NI 17.3b - CFO 37.3b) / TA 418b) |
| Beneish M = -3.30 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 47.81 with a total of 39,340,172 shares traded.
Over the past week, the price has changed by -0.95%,
over one month by +2.57%,
over three months by -3.21% and
over the past year by +17.77%.
Verizon Communications has received a consensus analysts rating of 3.73. Therefore, it is recommended to hold VZ.
- StrongBuy: 6
- Buy: 7
- Hold: 13
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 51.9 | 8.5% |
P/E Trailing = 11.7659
P/E Forward = 9.7276
P/S = 1.4476
P/B = 1.9498
P/EG = 0.9047
Revenue TTM = 139b USD
EBIT TTM = 30.0b USD
EBITDA TTM = 48.6b USD
Long Term Debt = 144b USD (from longTermDebt, last quarter)
Short Term Debt = 32.9b USD (from shortTermDebt, last quarter)
Debt = 219b USD (from shortLongTermDebtTotal, last quarter) + Leases 23.4b
Net Debt = 211b USD (calculated: Debt 219b - CCE 8.37b)
Enterprise Value = 412b USD (201b + Debt 219b - CCE 8.37b)
Interest Coverage Ratio = 4.28 (Ebit TTM 30.0b / Interest Expense TTM 7.00b)
EV/FCF = 20.56x (Enterprise Value 412b / FCF TTM 20.1b)
FCF Yield = 4.86% (FCF TTM 20.1b / Enterprise Value 412b)
FCF Margin = 14.41% (FCF TTM 20.1b / Revenue TTM 139b)
Net Margin = 12.46% (Net Income TTM 17.3b / Revenue TTM 139b)
Gross Margin = 58.85% ((Revenue TTM 139b - Cost of Revenue TTM 57.3b) / Revenue TTM)
Gross Margin QoQ = 60.30% (prev 80.49%)
Tobins Q-Ratio = 0.99 (Enterprise Value 412b / Total Assets 418b)
Interest Expense / Debt = 3.19% (Interest Expense 7.00b / Debt 219b)
Taxrate = 24.15% (1.64b / 6.78b)
NOPAT = 22.7b (EBIT 30.0b * (1 - 24.15%))
Current Ratio = 0.64 (Total Current Assets 44.7b / Total Current Liabilities 69.9b)
Debt / Equity = 2.12 (Debt 219b / totalStockholderEquity, last quarter 103b)
Debt / EBITDA = 4.34 (Net Debt 211b / EBITDA 48.6b)
Debt / FCF = 10.52 (Net Debt 211b / FCF TTM 20.1b)
Total Stockholder Equity = 104b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.34% (Net Income 17.3b / Total Assets 418b)
RoE = 16.68% (Net Income TTM 17.3b / Total Stockholder Equity 104b)
RoCE = 12.08% (EBIT 30.0b / Capital Employed (Equity 104b + L.T.Debt 144b))
RoIC = 5.97% (NOPAT 22.7b / Invested Capital 381b)
WACC = 4.09% (E(201b)/V(421b) * Re(5.91%) + D(219b)/V(421b) * Rd(3.19%) * (1-Tc(0.24)))
Discount Rate = 5.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 51.11 | Cagr: -0.04%
[DCF] Terminal Value 75.36% ; FCFF base≈20.1b ; Y1≈20.1b ; Y5≈21.1b
[DCF] Fair Price = 28.01 (EV 328b - Net Debt 211b = Equity 117b / Shares 4.18b; r=8.35% [WACC [floored]]; 5y FCF grow -0.61% → 2.50% )
EPS Correlation: -36.95 | EPS CAGR: -0.87% | SUE: 4.0 | # QB: 2
Revenue Correlation: 86.38 | Revenue CAGR: 1.30% | SUE: -0.93 | # QB: -1
EPS current Quarter (2026-06-30): EPS=1.27 | Chg30d=+0.82% | Revisions=+33% | Analysts=13
EPS next Quarter (2026-09-30): EPS=1.29 | Chg30d=+1.02% | Revisions=+14% | Analysts=12
EPS current Year (2026-12-31): EPS=4.97 | Chg30d=+1.21% | Revisions=+83% | GrowthEPS=+5.6% | GrowthRev=+3.4%
EPS next Year (2027-12-31): EPS=5.27 | Chg30d=+0.42% | Revisions=+5% | GrowthEPS=+6.1% | GrowthRev=+1.4%
[Analyst] Revisions Ratio: +83%