Stock Analysis Report

Verizon Communications

Executive Summary

Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide.


Trading at 49.8% below its fair value

Earnings are forecast to grow 4.65% per year

Earnings grew by 24.1% over the past year

Pays a high and reliable dividend of 4.2%

Risk Analysis

Has a high level of debt

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




US Telecom


US Market

1 Year Return




US Telecom


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

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 Year10.6%6.1%21.1%15.4%22.7%20.1%
3 Year36.1%18.9%18.5%1.2%50.1%40.5%
5 Year49.7%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


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 ($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?


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?


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


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


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


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


Average management tenure


Hans Vestberg (54yo)





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

Hans Vestberg
Chairman & CEO1.5yrsUS$22.21m0.00055% $1.3m
Matthew Ellis
Executive VP & CFO3.3yrsUS$7.06m0.0012% $2.8m
Ronan Dunne
Executive VP & CEO of Verizon Consumer Group1.1yrsUS$6.71m0.00037% $895.4k
K. Gowrappan
Executive VP & CEO of Verizon Media Group0yrsUS$12.75m0.0043% $10.5m
Kyle Malady
Executive VP & CTO2.1yrsno data0.00041% $992.2k
Rathi Murthy
Chief Technology Officer0.08yrsno datano data
Craig Silliman
Executive VP & Chief administrative1.1yrsno data0.00055% $1.3m
Brady Connor
Senior Vice President of Investor Relations0yrsno datano data
James Gerace
Senior VP & Chief Communications Officer6.7yrsno datano data
Diego Scotti
Executive VP & Chief Marketing Officer5.3yrsno datano data


Average Tenure


Average Age

Experienced Management: VZ's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Hans Vestberg
Chairman & CEO1.5yrsUS$22.21m0.00055% $1.3m
Daniel Schulman
Independent Director1.4yrsUS$264.87k0.00010% $242.0k
Clarence Otis
Lead Director0.9yrsUS$341.50k0.000070% $169.4k
Shellye Archambeau
Independent Director6.2yrsUS$313.67k0.00054% $1.3m
Vittorio Colao
Independent Director0.8yrsno datano data
Rodney Slater
Independent Director9.9yrsUS$304.00k0.0011% $2.6m
Mark Bertolini
Independent Director5yrsUS$306.00k0.00043% $1.0m
Melanie Healey
Independent Director8.2yrsUS$312.00k0.00078% $1.9m
Kathryn Tesija
Independent Director7.2yrsUS$312.00k0.00065% $1.6m
Gregory Weaver
Independent Director4.4yrsUS$339.50k0.00038% $919.6k


Average Tenure


Average Age

Experienced Board: VZ's board of directors are considered experienced (4.7 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

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


  • Verizon Communications Inc.
  • 1095 Avenue of the Americas
  • New York
  • New York
  • 10036
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VZNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1983
VZ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1983
0Q1SLSE (London Stock Exchange)YesCommon StockGBUSDNov 1983
VZSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 1983
BACDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1983
BACXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1983
VZSNSE (Santiago Stock Exchange)YesCommon StockCLUSDNov 1983
VZETLX (Eurotlx)YesCommon StockITEURNov 1983
VZWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1983
VZBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDNov 1983
VERIZENXTBR (Euronext Brussels)YesCommon StockBEUSDNov 1983
VZBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/2 COM USD0.10ARARSFeb 2011
VERZ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLAug 2012


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:48
End of Day Share Price2020/02/14 00:00
Annual Earnings2019/12/31

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.