Verizon Communications
Market Cap
US$237.8b
Last Updated
2021/01/25 23:04 UTC
Data Sources
Company Financials +
Executive Summary
Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer with proven 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: VZ's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
VZ
0.7%
US Telecom
2.6%
US Market
1 Year Return
-2.5%
VZ
-11.6%
US Telecom
26.0%
US Market
Return vs Industry: VZ exceeded the US Telecom industry which returned -11.6% over the past year.
Return vs Market: VZ underperformed the US Market which returned 26% over the past year.
Shareholder returns
| VZ | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 0.7% | 2.6% |
| 30 Day | -0.7% | 1.3% | 5.1% |
| 90 Day | 1.8% | 7.0% | 17.1% |
| 1 Year | 1.8%-2.5% | -6.6%-11.6% | 28.9%26.0% |
| 3 Year | 22.9%7.9% | 5.9%-9.2% | 46.3%36.6% |
| 5 Year | 43.5%15.1% | 20.7%-6.7% | 126.9%101.6% |
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
6 days ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Verizon Communications Inc. (NYSE:VZ) Shares?3 weeks ago | Simply Wall St
Should You Be Impressed By Verizon Communications Inc.'s (NYSE:VZ) ROE?1 month ago | Simply Wall St
Are Investors Undervaluing Verizon Communications Inc. (NYSE:VZ) By 45%?Valuation
Is Verizon Communications undervalued compared to its fair value and its price relative to the market?
48.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VZ ($58.42) is trading below our estimate of fair value ($112.72)
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 (13.2x) compared to the US Telecom industry average (11.5x).
PE vs Market: VZ is good value based on its PE Ratio (13.2x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: VZ is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: VZ is overvalued based on its PB Ratio (3.7x) compared to the US Telecom industry average (2x).
Next Steps
Future Growth
How is Verizon Communications forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
4.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VZ's forecast earnings growth (4.4% per year) is above the savings rate (2%).
Earnings vs Market: VZ's earnings (4.4% per year) are forecast to grow slower than the US market (21.5% 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 (10.6% 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 (25.7%)
Next Steps
Past Performance
How has Verizon Communications performed over the past 5 years?
5.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VZ has high quality earnings.
Growing Profit Margin: VZ's current net profit margins (14.3%) are higher than last year (12.3%).
Past Earnings Growth Analysis
Earnings Trend: VZ's earnings have grown by 5.6% per year over the past 5 years.
Accelerating Growth: VZ's earnings growth over the past year (13.4%) exceeds its 5-year average (5.6% per year).
Earnings vs Industry: VZ earnings growth over the past year (13.4%) underperformed the Telecom industry 13.4%.
Return on Equity
High ROE: Whilst VZ's Return on Equity (28.33%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Verizon Communications's financial position?
Financial Position Analysis
Short Term Liabilities: VZ's short term assets ($38.6B) exceed its short term liabilities ($36.2B).
Long Term Liabilities: VZ's short term assets ($38.6B) do not cover its long term liabilities ($194.3B).
Debt to Equity History and Analysis
Debt Level: VZ's debt to equity ratio (173.7%) is considered high.
Reducing Debt: VZ's debt to equity ratio has reduced from 768.3% to 173.7% over the past 5 years.
Debt Coverage: VZ's debt is well covered by operating cash flow (35.9%).
Interest Coverage: VZ's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Verizon Communications's current dividend yield, its reliability and sustainability?
4.30%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VZ's dividend (4.3%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: VZ's dividend (4.3%) is in the top 25% of dividend payers in the US market (3.85%)
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 (55.9%), 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 well covered by earnings (49.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Hans Vestberg (55 yo)
2.42yrs
Tenure
US$18,095,355
Compensation
Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018 and served as its Executive Chairman until January 2019. He has been the Chairman of the Board at ...
CEO Compensation Analysis
Compensation vs Market: Hans's total compensation ($USD18.10M) is above average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Hans's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2.42yrs | US$18.10m | 0.0022% $ 5.2m | |
| Executive VP & CFO | 4.17yrs | US$8.45m | 0.0016% $ 3.8m | |
| Executive VP & CEO of Verizon Business | 2yrs | US$7.71m | 0.0014% $ 3.2m | |
| Executive VP & Group CEO of Verizon Consumer Group | 2yrs | US$8.95m | 0.0013% $ 3.0m | |
| Executive VP & Group CEO of Verizon Media Group | 2yrs | US$7.89m | no data | |
| Executive VP & CTO | 3yrs | no data | 0.00064% $ 1.5m | |
| Chief Technology Officer | 1yr | no data | no data | |
| Executive VP & Chief Administrative | 2yrs | no data | 0.00068% $ 1.6m | |
| Senior Vice President of Investor Relations | no data | no data | no data | |
| Senior VP & Chief Communications Officer | 7.58yrs | no data | no data | |
| Executive VP & Chief Marketing Officer | 6.25yrs | no data | no data | |
| Executive VP & Chief Human Resources Officer | 1.5yrs | no data | 0.00039% $ 927.5k |
2.0yrs
Average Tenure
52yo
Average Age
Experienced Management: VZ's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2.42yrs | US$18.10m | 0.0022% $ 5.2m | |
| Independent Director | 2.33yrs | US$329.00k | 0% $ 0 | |
| Director | 0.25yr | no data | no data | |
| Independent Lead Director | 1.83yrs | US$361.17k | 0.000070% $ 166.5k | |
| Independent Director | 7.08yrs | US$330.00k | 0% $ 0 | |
| Independent Director | 1.67yrs | US$370.97k | 0% $ 0 | |
| Independent Director | 10.83yrs | US$304.00k | 0% $ 0 | |
| Independent Director | 5.92yrs | US$320.67k | 0.000010% $ 23.8k | |
| Independent Director | 9.08yrs | US$310.00k | 0% $ 0 | |
| Independent Director | 5.33yrs | US$340.00k | 0% $ 0 |
3.8yrs
Average Tenure
60.5yo
Average Age
Experienced Board: VZ's board of directors are considered experienced (3.8 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 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$237.816b
- 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 6 REP 1 COM | BR | BRL | Aug 2012 |
Biography
Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/25 23:04 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| 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.