Verizon Communications Inc. offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. More Details
6 star dividend payer with adequate balance sheet.
Share Price & News
How has Verizon Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: VZ's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: VZ underperformed the US Telecom industry which returned 3.9% over the past year.
Return vs Market: VZ underperformed the US Market which returned 57.9% over the past year.
Long-Term 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
1 week ago | Simply Wall StRead This Before Considering Verizon Communications Inc. (NYSE:VZ) For Its Upcoming US$0.63 Dividend
3 weeks ago | Simply Wall StIs Verizon Communications Inc.'s (NYSE:VZ) 4.4% Dividend Worth Your Time?
1 month ago | Simply Wall StUpdate: Verizon Communications (NYSE:VZ) Stock Gained 18% In The Last Three Years
Is Verizon Communications undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VZ ($57.62) is trading below our estimate of fair value ($128.01)
Significantly Below Fair Value: VZ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VZ is poor value based on its PE Ratio (13.4x) compared to the US Telecom industry average (13.1x).
PE vs Market: VZ is good value based on its PE Ratio (13.4x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: VZ is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: VZ's PB Ratio (3.5x) is in line with the US Telecom industry average.
How is Verizon Communications forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VZ's forecast earnings growth (7.6% per year) is above the savings rate (2%).
Earnings vs Market: VZ's earnings (7.6% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: VZ's earnings are forecast to grow, but not significantly.
Revenue vs Market: VZ's revenue (2.1% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: VZ's revenue (2.1% 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 (24.2%)
How has Verizon Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VZ has high quality earnings.
Growing Profit Margin: VZ's current net profit margins (13.9%) are lower than last year (14.6%).
Past Earnings Growth Analysis
Earnings Trend: VZ's earnings have grown by 2.7% 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 (-7.6%) over the past year, making it difficult to compare to the Telecom industry average (18%).
Return on Equity
High ROE: Whilst VZ's Return on Equity (26.49%) is high, this metric is skewed due to their high level of debt.
How is Verizon Communications's financial position?
Financial Position Analysis
Short Term Liabilities: VZ's short term assets ($54.6B) exceed its short term liabilities ($39.7B).
Long Term Liabilities: VZ's short term assets ($54.6B) do not cover its long term liabilities ($207.5B).
Debt to Equity History and Analysis
Debt Level: VZ's debt to equity ratio (185.5%) is considered high.
Reducing Debt: VZ's debt to equity ratio has reduced from 613.6% to 185.5% over the past 5 years.
Debt Coverage: VZ's debt is well covered by operating cash flow (32.5%).
Interest Coverage: VZ's interest payments on its debt are well covered by EBIT (7.5x coverage).
What is Verizon Communications's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VZ's dividend (4.36%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: VZ's dividend (4.36%) is in the top 25% of dividend payers in the US market (3.5%)
Stability and Growth of Payments
Stable Dividend: VZ's dividends per share have been stable in the past 10 years.
Growing Dividend: VZ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.8%), VZ's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VZ's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Hans Vestberg (55 yo)
Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018 and served as its Executive Chairman until January 2019. He has been the Chairman of the Board at ...
CEO Compensation Analysis
Compensation vs Market: Hans's total compensation ($USD19.10M) is above average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Hans's compensation has been consistent with company performance over the past year.
Experienced Management: VZ's management team is considered experienced (2.3 years average tenure).
Experienced Board: VZ's board of directors are considered experienced (5.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Verizon Communications Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Verizon Communications Inc.
- Ticker: VZ
- Exchange: NYSE
- Founded: 1983
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: US$238.109b
- Shares outstanding: 4.14b
- Website: https://www.verizon.com
Number of Employees
- Verizon Communications Inc.
- 1095 Avenue of the Americas
- New York
- New York
- United States
Verizon Communications Inc. offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provi...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/13 22:16|
|End of Day Share Price||2021/04/13 00:00|
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.