Verizon Communications
Market Cap
US$242.0b
Last Updated
2020/02/16 23:48 UTC
Data Sources
Company Financials +
Executive Summary
Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide.
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer with solid track record.
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
Stable Share Price: VZ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.4%
VZ
-1.2%
US Telecom
1.5%
US Market
1 Year Return
6.1%
VZ
15.4%
US Telecom
20.1%
US Market
Return vs Industry: VZ underperformed the US Telecom industry which returned 15.4% over the past year.
Return vs Market: VZ underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| VZ | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | -1.2% | 1.5% |
| 30 Day | -2.7% | -1.1% | 1.4% |
| 90 Day | -1.6% | -0.09% | 8.7% |
| 1 Year | 10.6%6.1% | 21.1%15.4% | 22.7%20.1% |
| 3 Year | 36.1%18.9% | 18.5%1.2% | 50.1%40.5% |
| 5 Year | 49.7%19.5% | 40.3%8.7% | 73.1%54.1% |
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
6 days ago | Simply Wall St
How Many Verizon Communications Inc. (NYSE:VZ) Shares Have Insiders Sold, In The Last Year?2 weeks ago | Simply Wall St
Does Verizon Communications Inc.'s (NYSE:VZ) P/E Ratio Signal A Buying Opportunity?1 month ago | Simply Wall St
Should You Use Verizon Communications's (NYSE:VZ) Statutory Earnings To Analyse It?Valuation
Is Verizon Communications undervalued compared to its fair value and its price relative to the market?
49.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VZ ($58.51) is trading below our estimate of fair value ($116.57)
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 (12.6x) compared to the Telecom industry average (18.2x).
PE vs Market: VZ is good value based on its PE Ratio (12.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: VZ is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: VZ is overvalued based on its PB Ratio (3.9x) compared to the US Telecom industry average (1.5x).
Next Steps
Future Growth
How is Verizon Communications forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
4.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VZ's forecast earnings growth (4.7% per year) is above the savings rate (1.7%).
Earnings vs Market: VZ's earnings (4.7% 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 (1.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: VZ's revenue (1.8% 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 (26.4%)
Next Steps
Past Performance
How has Verizon Communications performed over the past 5 years?
13.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VZ has high quality earnings.
Growing Profit Margin: VZ's current net profit margins (14.6%) are higher than last year (11.9%).
Past Earnings Growth Analysis
Earnings Trend: VZ's earnings have grown by 13.4% per year over the past 5 years.
Accelerating Growth: VZ's earnings growth over the past year (24.1%) exceeds its 5-year average (13.4% per year).
Earnings vs Industry: VZ earnings growth over the past year (24.1%) exceeded the Telecom industry -23.8%.
Return on Equity
High ROE: Whilst VZ's Return on Equity (31.49%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Verizon Communications's financial position?
Financial Position Analysis
Short Term Liabilities: VZ's short term assets ($37.5B) do not cover its short term liabilities ($44.9B).
Long Term Liabilities: VZ's short term assets ($37.5B) do not cover its long term liabilities ($184.0B).
Debt to Equity History and Analysis
Debt Level: VZ's debt to equity ratio (177.4%) is considered high.
Reducing Debt: VZ's debt to equity ratio has reduced from 831.7% to 177.4% over the past 5 years.
Debt Coverage: VZ's debt is well covered by operating cash flow (32.1%).
Interest Coverage: VZ's interest payments on its debt are well covered by EBIT (6.5x 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?
4.20%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VZ's dividend (4.2%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: VZ's dividend (4.2%) is in the top 25% of dividend payers in the US market (3.69%)
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 (52.3%), 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 (46.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Hans Vestberg (54yo)
1.5yrs
Tenure
US$22,206,086
Compensation
Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018 and served as its Executive Chairman until January 2019. He has been the Chairman of the Board at ...
CEO Compensation Analysis
Compensation vs Market: Hans's total compensation ($USD22.21M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Hans's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 1.5yrs | US$22.21m | 0.00055% $1.3m | |
| Executive VP & CFO | 3.3yrs | US$7.06m | 0.0012% $2.8m | |
| Executive VP & CEO of Verizon Consumer Group | 1.1yrs | US$6.71m | 0.00037% $895.4k | |
| Executive VP & CEO of Verizon Media Group | 0yrs | US$12.75m | 0.0043% $10.5m | |
| Executive VP & CTO | 2.1yrs | no data | 0.00041% $992.2k | |
| Chief Technology Officer | 0.08yrs | no data | no data | |
| Executive VP & Chief administrative | 1.1yrs | no data | 0.00055% $1.3m | |
| Senior Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior VP & Chief Communications Officer | 6.7yrs | no data | no data | |
| Executive VP & Chief Marketing Officer | 5.3yrs | no data | no data |
1.8yrs
Average Tenure
51yo
Average Age
Experienced Management: VZ's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 1.5yrs | US$22.21m | 0.00055% $1.3m | |
| Independent Director | 1.4yrs | US$264.87k | 0.00010% $242.0k | |
| Lead Director | 0.9yrs | US$341.50k | 0.000070% $169.4k | |
| Independent Director | 6.2yrs | US$313.67k | 0.00054% $1.3m | |
| Independent Director | 0.8yrs | no data | no data | |
| Independent Director | 9.9yrs | US$304.00k | 0.0011% $2.6m | |
| Independent Director | 5yrs | US$306.00k | 0.00043% $1.0m | |
| Independent Director | 8.2yrs | US$312.00k | 0.00078% $1.9m | |
| Independent Director | 7.2yrs | US$312.00k | 0.00065% $1.6m | |
| Independent Director | 4.4yrs | US$339.50k | 0.00038% $919.6k |
4.7yrs
Average Tenure
59.5yo
Average Age
Experienced Board: VZ's board of directors are considered experienced (4.7 years average tenure).
Ownership
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
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$241.997b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VZ | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 1983 |
| VZ * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Nov 1983 |
| 0Q1S | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Nov 1983 |
| VZ | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Nov 1983 |
| BAC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 1983 |
| BAC | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Nov 1983 |
| VZ | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Nov 1983 |
| VZ | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Nov 1983 |
| VZ | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Nov 1983 |
| VZ | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Nov 1983 |
| VERIZ | ENXTBR (Euronext Brussels) | Yes | Common Stock | BE | USD | Nov 1983 |
| VZ | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1/2 COM USD0.10 | AR | ARS | Feb 2011 | |
| VERZ34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM SHS | BR | BRL | Aug 2012 |
Biography
Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company's Wireless segment provides wireless voice and data services; Internet access on various notebook computers and tablets; international travel wireless services; network access services to deliver various Internet of Things products; digital advertising and digital media services platforms; and wireless devices, including smartphones and basic phones, wearables, and tablets and other Internet access devices. As of December 31, 2018, it had 118.0 million retail connections. Its Wireline segment offers traditional circuit-based network products and services; networking solutions, comprising private Internet protocol (IP), Ethernet, and software-defined wide area network, as well as cyber security services; local exchange, regional, long distance, and toll-free calling services; voice messaging and conferencing services; and workforce productivity and customer contact center solutions, as well as residential fixed connectivity solutions, including Internet, TV, and voice services under the Fios brand name. This segment also provides premises equipment, as well as installation, maintenance, and site services; data, voice, local dial tone, and broadband services primarily to local, long distance, and wireless carriers; voice and networking products, Fios services, IP networking, voice solutions, security, and managed information technology services for small and medium businesses, state and local governments, and educational institutions; and security and managed network services. The company has strategic partnership with HERE Technologies and Dignitas. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:48 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.