VZ

Verizon CommunicationsNYSE:VZ Stock Report

Market Cap

US$224.7b

7D

0.09%

1Y

-10.1%

Updated

18 Sep, 2021

Data

Company Financials +
VZ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends6/6

VZ Overview

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

Summary of all time highs, changes and price drops for Verizon Communications
Historical stock prices
Current Share PriceUS$54.28
52 Week HighUS$53.83
52 Week LowUS$61.95
Beta0.45
1 Month Change-1.97%
3 Month Change-2.76%
1 Year Change-10.06%
3 Year Change-0.26%
5 Year Change3.27%
Change since IPO90.46%

Recent News & Updates

Sep 17

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.

Sep 06
Verizon Communications (NYSE:VZ) Will Pay A Larger Dividend Than Last Year At US$0.64

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...

Shareholder Returns

VZUS TelecomUS Market
7D0.09%0.1%-0.6%
1Y-10.1%-4.1%33.8%

Return vs Industry: VZ underperformed the US Telecom industry which returned -4.1% over the past year.

Return vs Market: VZ underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is VZ's price volatile compared to industry and market?
VZ volatility
VZ Beta0.45
Industry Beta0.64
Market Beta1

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

FoundedEmployeesCEOWebsite
1983132,200Hans Vestberghttps://www.verizon.com

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.

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VZ ($54.28) is trading below our estimate of fair value ($152.94)

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 (11.2x) is in line with the US Telecom industry average.

PE vs Market: VZ is good value based on its PE Ratio (11.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: VZ is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: VZ is good value based on its PB Ratio (3x) compared to the US Telecom industry average (3.3x).


Future Growth

How is Verizon Communications forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

2.0%

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 (14.9% per year).

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

Revenue vs Market: VZ's revenue (0.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: VZ's revenue (0.6% 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%)


Past Performance

How has Verizon Communications performed over the past 5 years?

2.0%

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.


Financial Health

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).


Balance Sheet


Dividend

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

4.72%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateOct 07 2021Dividend Pay DateNov 01 202125 days from Ex DividendBuy in the next 17 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: VZ's dividend (4.72%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: VZ's dividend (4.72%) 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 (49.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Hans Vestberg (56 yo)

3.08yrs

Tenure

US$19,097,582

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'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.


Leadership Team

Experienced Management: VZ's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: VZ's board of directors are considered experienced (4.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Verizon Communications Inc.'s 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$224.725b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:05
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.