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.
