Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

VZ

Key Insights into Verizon Communications Stock

Now trading at a price of $38.79, Verizon Communications has moved 1.0% so far today.

Verizon Communications returned losses of -7.2% last year, with its stock price reaching a high of $47.36 and a low of $37.59. Over the same period, the stock underperformed the S&P 500 index by -23.2%. AThe company's 50-day average price was $42.93. Verizon Communications Inc., through its subsidiaries, engages in the provision of 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 100,000 full time employees. Verizon Communications has offered a 7.1% dividend yield over the last 12 months.

The Company's Revenues Are Declining:

2019 2020 2021 2022 2023 2024
Revenue (M) $131,868 $128,292 $133,613 $136,835 $133,974 $134,788
Operating Margins 23% 22% 24% 22% 17% 21%
Net Margins 15% 14% 17% 16% 9% 13%
Net Income (M) $19,265 $17,801 $22,065 $21,256 $11,614 $17,506
Net Interest Expense (M) $4,730 $4,247 $3,485 $3,613 $5,524 $336
Depreciation & Amort. (M) $16,682 $16,720 $16,206 $17,099 $17,624 $15,112
Diluted Shares (M) 4,140 4,142 4,150 4,204 4,215 4,223
Earnings Per Share $4.65 $4.3 $5.32 $5.06 $2.75 $4.14
EPS Growth n/a -7.53% 23.72% -4.89% -45.65% 50.55%
Avg. Price $47.21 $48.98 $48.98 $47.48 $37.7 $38.4
P/E Ratio 10.13 11.39 9.21 9.38 13.66 9.25
Free Cash Flow (M) $17,807 $23,576 $19,253 $14,054 $18,708 $33,612
CAPEX (M) $17,939 $18,192 $20,286 $23,087 $18,767 $3,300
EV / EBITDA 6.46 6.67 7.05 7.09 7.26 6.36
Total Debt (M) $111,489 $123,173 $143,425 $140,676 $137,701 $121,381
Net Debt / EBITDA 2.31 2.22 2.89 2.9 3.35 2.68
Current Ratio 0.84 1.38 0.78 0.75 0.69 0.63

Verizon Communications Shares Are Inexpensive:

Verizon Communications has a trailing twelve month P/E ratio of 10.0, compared to an average of 18.22 for the Telecommunications sector. Based on its EPS guidance of $4.73, the company has a forward P/E ratio of 9.1. The 0.2% compound average growth rate of Verizon Communications's historical and projected earnings per share yields a PEG ratio of 40.92. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Verizon Communications in terms of its equity because its P/B ratio is 1.59 while the sector average is 1.86. The company's shares are currently trading -17.6% above their Graham number.

Verizon Communications Has an Average Rating of Buy:

The 21 analysts following Verizon Communications have set target prices ranging from $43.0 to $58.0 per share, for an average of $48.86 with a buy rating. The company is trading -20.6% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Verizon Communications has an average amount of shares sold short because 2.1% of the company's shares are sold short. Institutions own 68.0% of the company's shares, and the insider ownership rate stands at 0.04%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $14,463,464,719.

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.

IN FOCUS