Verizon Communications logged a 1.8% change during today's afternoon session, and is now trading at a price of $34.29 per share.
Over the last year, Verizon Communications logged a -4.0% change, with its stock price reaching a high of $42.58 and a low of $30.14. Over the same period, the stock underperformed the S&P 500 index by -14.0%. As of April 2023, the company's 50-day average price was $32.9. Verizon Communications Inc., through its subsidiaries, provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Based in New York, NY, the large-cap Telecommunications company has 110,500 full time employees. Verizon Communications has offered a 7.8% dividend yield over the last 12 months.
The Company Has a Highly Leveraged Balance Sheet:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $130,863 | $131,868 | $128,292 | $133,613 | $136,835 | $135,000 |
| Gross Margins | 17% | 23% | 22% | 24% | 22% | 22% |
| Operating Margins | 17.0% | 23.0% | 22.0% | 24.0% | 22.0% | 22.0% |
| Net Margins | 12.0% | 15.0% | 14.0% | 17.0% | 16.0% | 16.0% |
| Net Income (MM) | $16,039 | $19,788 | $18,348 | $22,618 | $21,748 | $21,506 |
| Net Interest Expense (MM) | $4,833 | $4,730 | $4,247 | $3,485 | $3,613 | $4,534 |
| Depreciation & Amort. (MM) | $17,403 | $16,682 | $16,720 | $16,206 | $17,099 | $17,219 |
| Earnings Per Share | $3.76 | $4.65 | $4.3 | $5.32 | $5.06 | $5.0 |
| EPS Growth | n/a | 23.67% | -7.53% | 23.72% | -4.89% | -1.19% |
| Diluted Shares (MM) | 4,132 | 4,140 | 4,142 | 4,150 | 4,204 | 4,224 |
| Free Cash Flow (MM) | $17,681 | $17,807 | $23,576 | $19,253 | $14,054 | $14,830 |
| Capital Expenditures (MM) | $16,658 | $17,939 | $18,192 | $20,286 | $23,087 | $22,666 |
| Net Current Assets (MM) | -$175,483 | -$191,419 | -$192,615 | -$246,668 | -$249,360 | -$246,065 |
| Long Term Debt (MM) | $105,873 | $100,712 | $123,173 | $143,425 | $140,676 | $137,871 |
| Net Debt / EBITDA | 2.78 | 2.31 | 2.46 | 3.05 | 3.12 | 3.51 |
Verizon Communications Has Attractive P/B and P/E Ratios:
Verizon Communications has a trailing twelve month P/E ratio of 6.6, compared to an average of 18.85 for the Telecommunications sector. Based on its EPS guidance of $4.41, the company has a forward P/E ratio of 7.5. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 4.9%. On this basis, the company's PEG ratio is 1.36, which shows that it is fairly priced. Additionally, the market is possibly undervaluing Verizon Communications in terms of its equity because its P/B ratio is 1.47 whereas the sector average is 3.12.
Verizon Communications Has an Average Rating of Hold:
The 22 analysts following Verizon Communications have set target prices ranging from $28.29 to $60.36 per share, for an average of $37.26 with a hold rating. As of April 2023, the company is trading -11.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Verizon Communications has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 63.9% of the company's shares, and the insider ownership rate stands at 0.03%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $12,025,320,143.
