Thinking of Investing in VZ? What Our Analysts Know.

Verizon Communications logged a -0.1% change during today's afternoon session, and is now trading at a price of $38.7 per share. The S&P 500 index moved 0.57% and the Nasdaq posted a 0.9148477% change.

Verizon Communications shares moved -24.19% over the last 52 weeks, with a high of $53.08 and a low of $32.79. During this time, the stock lagged the S&P 500 index by -14.96%. As of January 2022, the company's 50-day average price is $39.95. Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The large-cap Technology company is based in New York, NY. Verizon Communications has returned a 6.74% dividend yield over the last 12 months.

Sustained EPS Growth with a Highly Leveraged Balance Sheet:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $131,868 $128,292 $133,613 $136,835
Revenue Growth n/a -2.71% 4.15% 2.41%
Gross Margins 64.16% 61.85% 69.1% 66.99%
Gross Margins Growth n/a -3.6% 11.72% -3.05%
Operating Margins 23.04% 22.45% 24.29% 22.27%
Operating Margins Growth n/a -2.56% 8.2% -8.32%
Earnings Per Share $4.66 $4.3 $5.29 $5.05
EPS Growth n/a -7.73% 23.02% -4.54%
Free Cash Flow (MM) $16,909 $21,450 -$28,343 $10,401
FCF Growth n/a 26.86% -232.14% 136.7%
Capital Expenditures (MM) $18,837 $20,318 $67,882 $26,740
Net Debt / EBITDA 2.5 2.41 3.05 3.05

Verizon Communications Is Fairly Priced at Current Levels:

Compared to the Technology sector's average of 27.16, Verizon Communications has a trailing twelve month P/E ratio of 7.65.

Furthermore, Verizon Communications is likely undervalued in terms of its equity because its P/B ratio is 1.798 compared to its sector average of 6.23. The company's shares are currently trading -18.42% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 4.61 * 21.7) = $47.44

24 analysts are following Verizon Communications and have set target prices ranging from $33.0 to $64.0 per share. On average, they have given the company a rating of hold. At the current price of $38.7, VZ is trading -13.69% away from its average analyst target price of $44.84 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.