NYSE:VZ

Stock Analysis Report

Verizon Communications

Executive Summary

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide.

Snowflake

Fundamentals

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has Verizon Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

VZ

2.0%

US Telecom

1.0%

US Market


1 Year Return

10.5%

VZ

10.9%

US Telecom

8.0%

US Market

Return vs Industry: VZ matched the US Telecom industry which returned 10.9% over the past year.

Return vs Market: VZ exceeded the US Market which returned 8% over the past year.


Shareholder returns

VZIndustryMarket
7 Day1.9%2.0%1.0%
30 Day0.8%0.6%-0.07%
90 Day9.5%13.2%-1.0%
1 Year15.2%10.5%16.6%10.9%10.4%8.0%
3 Year44.3%26.0%27.4%8.8%46.2%36.7%
5 Year54.2%22.9%40.8%8.7%64.3%46.2%

Price Volatility Vs. Market

How volatile is Verizon Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Verizon Communications undervalued compared to its fair value and its price relative to the market?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VZ ($60.75) is trading below our estimate of fair value ($118.27)

Significantly Below Fair Value: VZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VZ is good value based on its PE Ratio (15.9x) compared to the Telecom industry average (16.1x).

PE vs Market: VZ is good value based on its PE Ratio (15.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: VZ is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: VZ is overvalued based on its PB Ratio (4.4x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is Verizon Communications forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VZ's forecast earnings growth (5.6% per year) is above the savings rate (2.7%).

Earnings vs Market: VZ's earnings (5.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: VZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: VZ's revenue (1.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: VZ's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VZ's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has Verizon Communications performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VZ's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: VZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VZ had negative earnings growth (-48.8%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: Whilst VZ's Return on Equity (28.23%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: VZ has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: VZ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Verizon Communications's financial position?


Financial Position Analysis

Short Term Liabilities: VZ's short term assets ($33.3B) do not cover its short term liabilities ($38.2B)

Long Term Liabilities: VZ's short term assets (33.3B) do not cover its long term liabilities (186.9B)


Debt to Equity History and Analysis

Debt Level: VZ's debt to equity ratio (195.3%) is considered high

Reducing Debt: VZ's debt to equity ratio has reduced from 686.3% to 195.3% over the past 5 years.

Debt Coverage: VZ's debt is well covered by operating cash flow (29.8%).

Interest Coverage: VZ's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: VZ has a high level of physical assets or inventory.

Debt Coverage by Assets: VZ's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Verizon Communications's current dividend yield, its reliability and sustainability?

4.05%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VZ's dividend (4.05%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: VZ's dividend (4.05%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: VZ's dividends per share have been stable in the past 10 years.

Growing Dividend: VZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.9%), VZ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VZ's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

What is the CEO of Verizon Communications's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Hans Vestberg (54yo)

1.2yrs

Tenure

US$22,206,086

Compensation

Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018 and served as its Executive Chairman until January 2019. He has been the Chairman of the Board at  ...


CEO Compensation Analysis

Compensation vs. Market: Hans has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Hans's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.5yrs

Average Tenure

51yo

Average Age

Experienced Management: VZ's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: VZ's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: VZ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$981,75003 Sep 19
Tami Erwin
EntityIndividual
Shares17,000
Max PriceUS$57.75
SellUS$16,221,23928 Feb 19
Lowell McAdam
EntityIndividual
Shares285,988
Max PriceUS$56.72

Ownership Breakdown


Management Team

  • Marc Reed (60yo)

    Executive VP & Strategic Advisor to the Chairman

    • Tenure: 0.3yrs
    • Compensation: US$7.35m
  • Jim Gerace (55yo)

    Senior VP & Chief Communications Officer

    • Tenure: 6.3yrs
  • Hans Vestberg (54yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: US$22.21m
  • Ronan Dunne (56yo)

    Executive VP & Group CEO of Verizon Consumer

    • Tenure: 0.8yrs
    • Compensation: US$6.71m
  • Kyle Malady (51yo)

    Executive VP & CTO

    • Tenure: 1.8yrs
  • Craig Silliman (51yo)

    Executive VP & Chief administrative

    • Tenure: 0.8yrs
  • Diego Scotti (46yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 5yrs
  • Matt Ellis (48yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$7.06m
  • K. Gowrappan (38yo)

    Executive VP & Group CEO of Verizon Media

    • Tenure: 0yrs
    • Compensation: US$12.75m
  • Brady Connor

    Senior Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Dan Schulman (61yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$264.87k
  • Clarence Otis (63yo)

    Lead Director

    • Tenure: 0.6yrs
    • Compensation: US$341.50k
  • Shellye Archambeau (56yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$313.67k
  • Vittorio Colao (57yo)

    Independent Director

    • Tenure: 0.4yrs
  • Rodney Slater (64yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$304.00k
  • Mark Bertolini (62yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$306.00k
  • Hans Vestberg (54yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: US$22.21m
  • Melanie Healey (58yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$312.00k
  • Kathee Tesija (56yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$312.00k
  • Greg Weaver (67yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$339.50k

Company Information

Verizon Communications Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verizon Communications Inc.
  • Ticker: VZ
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$251.262b
  • Shares outstanding: 4.14b
  • Website: https://www.verizon.com

Number of Employees


Location

  • Verizon Communications Inc.
  • 1095 Avenue of the Americas
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VZNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1983
VZBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDNov 1983
0Q1SLSE (London Stock Exchange)YesCommon StockGBUSDNov 1983
VZSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 1983
BACDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1983
VZ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1983
BACXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1983
VZWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1983
VZSNSE (Santiago Stock Exchange)YesCommon StockCLUSDNov 1983
VZBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/2 COM USD0.10ARARSFeb 2011
VERZ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLAug 2012

Biography

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:45
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.