(VZ) Verizon Communications - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NYSE (USA) | Market Cap: 197.191m USD | Total Return: 13.8% in 12m
Industry Rotation: +3.6
Avg Turnover: 1.01B
EPS Trend: -45.7%
Qual. Beats: 0
Rev. Trend: 30.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
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: 17.34b 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 37.34b > Net Income 17.34b |
| Net Debt (187.51b) to EBITDA (48.65b): 3.85 < 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 48.65b / Interest Expense TTM 7.00b) |
| A: -0.06 (Total Current Assets 44.72b - Total Current Liabilities 69.88b) / Total Assets 417.88b |
| B: 0.23 (Retained Earnings 96.82b / Total Assets 417.88b) |
| C: 0.08 (EBIT TTM 29.98b / Avg Total Assets 399.12b) |
| D: 0.30 (Book Value of Equity 94.88b / Total Liabilities 313.26b) |
| Altman-Z'' Score: 1.18 = BB |
| DSRI: 0.96 (Receivables 26.66b/27.03b, Revenue 139.15b/135.29b) |
| GMI: 0.79 (GM 58.85% / 46.56%) |
| AQI: 0.96 (AQ_t 0.59 / AQ_t-1 0.62) |
| SGI: 1.03 (Revenue 139.15b / 135.29b) |
| TATA: -0.05 (NI 17.34b - CFO 37.34b) / TA 417.88b) |
| Beneish M-Score: -3.30 (Cap -4..+1) = AA |
Over the past week, the price has changed by -1.80%, over one month by +2.98%, over three months by -3.81% and over the past year by +13.83%.
- StrongBuy: 6
- Buy: 7
- Hold: 13
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 51.9 | 11.8% |
P/E Forward = 9.5238
P/S = 1.4171
P/B = 1.9085
P/EG = 0.8856
Revenue TTM = 139.15b USD
EBIT TTM = 29.98b USD
EBITDA TTM = 48.65b USD
Long Term Debt = 144.23b USD (from longTermDebt, last quarter)
Short Term Debt = 32.95b USD (from shortTermDebt, last quarter)
Debt = 195.87b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 187.51b USD (from netDebt column, last quarter)
Enterprise Value = 384.70b USD (197.19b + Debt 195.87b - CCE 8.37b)
Interest Coverage Ratio = 4.28 (Ebit TTM 29.98b / Interest Expense TTM 7.00b)
EV/FCF = 19.18x (Enterprise Value 384.70b / FCF TTM 20.05b)
FCF Yield = 5.21% (FCF TTM 20.05b / Enterprise Value 384.70b)
FCF Margin = 14.41% (FCF TTM 20.05b / Revenue TTM 139.15b)
Net Margin = 12.46% (Net Income TTM 17.34b / Revenue TTM 139.15b)
Gross Margin = 58.85% ((Revenue TTM 139.15b - Cost of Revenue TTM 57.26b) / Revenue TTM)
Gross Margin QoQ = 60.30% (prev 80.49%)
Tobins Q-Ratio = 0.92 (Enterprise Value 384.70b / Total Assets 417.88b)
Interest Expense / Debt = 0.99% (Interest Expense 1.94b / Debt 195.87b)
Taxrate = 24.15% (1.64b / 6.78b)
NOPAT = 22.75b (EBIT 29.98b * (1 - 24.15%))
Current Ratio = 0.64 (Total Current Assets 44.72b / Total Current Liabilities 69.88b)
Debt / Equity = 1.90 (Debt 195.87b / totalStockholderEquity, last quarter 103.31b)
Debt / EBITDA = 3.85 (Net Debt 187.51b / EBITDA 48.65b)
Debt / FCF = 9.35 (Net Debt 187.51b / FCF TTM 20.05b)
Total Stockholder Equity = 103.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.34% (Net Income 17.34b / Total Assets 417.88b)
RoE = 16.68% (Net Income TTM 17.34b / Total Stockholder Equity 103.97b)
RoCE = 12.08% (EBIT 29.98b / Capital Employed (Equity 103.97b + L.T.Debt 144.23b))
RoIC = 8.75% (NOPAT 22.75b / Invested Capital 259.81b)
WACC = 3.39% (E(197.19b)/V(393.06b) * Re(6.02%) + D(195.87b)/V(393.06b) * Rd(0.99%) * (1-Tc(0.24)))
Discount Rate = 6.02% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 51.11 | Cagr: -0.04%
[DCF] Terminal Value 87.48% ; FCFF base≈20.10b ; Y1≈22.75b ; Y5≈30.89b
[DCF] Fair Price = 172.0 (EV 905.95b - Net Debt 187.51b = Equity 718.44b / Shares 4.18b; r=6.0% [WACC]; 5y FCF grow 15.29% → 3.0% )
EPS Correlation: -45.71 | EPS CAGR: -2.31% | SUE: 0.24 | # QB: 0
Revenue Correlation: 30.33 | Revenue CAGR: 0.51% | SUE: -0.93 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.28 | Chg30d=+1.56% | Revisions=+33% | Analysts=18
EPS next Quarter (2026-09-30): EPS=1.29 | Chg30d=+1.57% | Revisions=+18% | Analysts=17
EPS current Year (2026-12-31): EPS=4.96 | Chg30d=+0.87% | Revisions=+83% | GrowthEPS=+5.3% | GrowthRev=+3.4%
EPS next Year (2027-12-31): EPS=5.27 | Chg30d=+0.41% | Revisions=+5% | GrowthEPS=+6.3% | GrowthRev=+1.4%
[Analyst] Revisions Ratio: +83%