Verizon Communications Inc. offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.
Verizon Communications Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$54.47|
|52 Week High||US$53.83|
|52 Week Low||US$61.95|
|1 Month Change||-0.55%|
|3 Month Change||-2.45%|
|1 Year Change||-8.24%|
|3 Year Change||1.17%|
|5 Year Change||4.99%|
|Change since IPO||91.12%|
Recent News & Updates
Verizon's (NYSE:VZ) Value is Lagging the Market Prospects and Dividend Strengths
After 3 years, Verizon Communications Inc. (NYSE:VZ) stock is back on the starting line. While it might be frustrating for the investors, periods of sideways price movement have been reoccurring throughout the company's history. Yet, with a high 4.8% yield and a number of new developments, the stock might be undervalued at the moment. This article will examine this possibility through a discounted cash flow (DCF) method.
Verizon Communications' (NYSE:VZ) Shareholders Will Receive A Bigger Dividend Than Last Year
Verizon Communications Inc. ( NYSE:VZ ) will increase its dividend on the 1st of November to US$0.64. This takes the...
Where Will Verizon Stock Be In 3 Years? Low-Teens Annualized Return, Including 4.6% Dividend Yield
We expect Verizon's 2021-24 EPS CAGR to be 6%+, from monetizing new C-band spectrum with 5G mobile, fixed wireless, MVNO, etc. Our confidence is helped by Verizon's track record in delivering disciplined and profitable revenue growth in its core Consumer business. The Dividend Yield is 4.6%, with a dividend that is 2x covered by adjusted EPS and 1.5x covered by recurring Free Cash Flow. The P/E is just over 10x. When deleveraging and C-band CapEx are complete, more dividends and buybacks will help a re-rating upwards. With shares at $54.43, we expect an exit price of $75 and a total return of 55% (14.6% annualized) in less than 3.5 years. Buy.
Verizon Communications (NYSE:VZ) Will Pay A Larger Dividend Than Last Year At US$0.64
The board of Verizon Communications Inc. ( NYSE:VZ ) has announced that the dividend on 1st of November will be...
|VZ||US Telecom||US Market|
Return vs Industry: VZ underperformed the US Telecom industry which returned -2.3% over the past year.
Return vs Market: VZ underperformed the US Market which returned 35.3% over the past year.
Stable Share Price: VZ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.
Volatility Over Time: VZ's weekly volatility (1%) has been stable over the past year.
About the Company
Verizon Communications Inc. offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices, such as smart watches. It also provides residential fixed connectivity solutions, including internet, video, and voice services; and sells network access to mobile virtual network operators.
Verizon Communications Fundamentals Summary
|VZ fundamental statistics|
Is VZ overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|VZ income statement (TTM)|
|Cost of Revenue||US$54.93b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 20, 2021
|Earnings per share (EPS)||4.83|
|Net Profit Margin||15.05%|
How did VZ perform over the long term?See historical performance and comparison
4.7%Current Dividend Yield
Does VZ pay a reliable dividends?See VZ dividend history and benchmarks
|Verizon Communications dividend dates|
|Ex Dividend Date||Oct 07 2021|
|Dividend Pay Date||Nov 01 2021|
|Days until Ex dividend||9 days|
|Days until Dividend pay date||34 days|
Does VZ pay a reliable dividends?See VZ dividend history and benchmarks
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 ($54.37) is trading below our estimate of fair value ($153.85)
Significantly Below Fair Value: VZ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VZ's PE Ratio (11.3x) is in line with the US Telecom industry average.
PE vs Market: VZ is good value based on its PE Ratio (11.3x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: VZ is poor value based on its PEG Ratio (5.8x)
Price to Book Ratio
PB vs Industry: VZ is good value based on its PB Ratio (3.1x) compared to the US Telecom industry average (3.2x).
How is Verizon Communications forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VZ's forecast earnings growth (2% per year) is below the savings rate (2%).
Earnings vs Market: VZ's earnings (2% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: VZ's earnings are forecast to grow, but not significantly.
Revenue vs Market: VZ's revenue (0.8% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: VZ's revenue (0.8% 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 (25.5%)
How has Verizon Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VZ has a high level of non-cash earnings.
Growing Profit Margin: VZ's current net profit margins (15%) are higher than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: VZ's earnings have grown by 2% per year over the past 5 years.
Accelerating Growth: VZ's earnings growth over the past year (4.4%) exceeds its 5-year average (2% per year).
Earnings vs Industry: VZ earnings growth over the past year (4.4%) underperformed the Telecom industry 155.1%.
Return on Equity
High ROE: Whilst VZ's Return on Equity (27.36%) 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 ($35.6B) do not cover its short term liabilities ($40.1B).
Long Term Liabilities: VZ's short term assets ($35.6B) do not cover its long term liabilities ($234.0B).
Debt to Equity History and Analysis
Debt Level: VZ's debt to equity ratio (201.7%) is considered high.
Reducing Debt: VZ's debt to equity ratio has reduced from 481.9% to 201.7% over the past 5 years.
Debt Coverage: VZ's debt is well covered by operating cash flow (25.5%).
Interest Coverage: VZ's interest payments on its debt are well covered by EBIT (8.1x coverage).
What is Verizon Communications's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: VZ's dividend (4.71%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: VZ's dividend (4.71%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: VZ's dividends per share have been stable in the past 10 years.
Growing Dividend: VZ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52%), VZ's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VZ's dividends in 3 years are forecast to be well covered by earnings (49% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Hans Vestberg (56 yo)
Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018 and served as its Executive Chairman until January 2019. He has been the Chairman of the Board at...
CEO Compensation Analysis
Compensation vs Market: Hans's total compensation ($USD19.10M) is above average for companies of similar size in the US market ($USD11.36M).
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 (3.4 years average tenure).
Experienced Board: VZ's board of directors are considered experienced (4.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VZ insiders have only sold shares 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 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$225.512b
- 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
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 22:58|
|End of Day Share Price||2021/09/27 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.