Verizon Communications Inc
Exchange: NYSESector: Communication ServicesIndustry: Telecom Services
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $136.8 billion in 2022. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
Did you know?
Price sits at 66% of its 52-week range.
Current Price
$45.98
-0.63%GoodMoat Value
$64.08
39.4% undervaluedProfile
Valuation (TTM)
Market Cap$193.87B
P/E11.29
EV$375.86B
P/B1.86
Shares Out4.22B
P/Sales1.40
Revenue$138.19B
EV/EBITDA7.54
Verizon Communications Inc (VZ) Stock Analysis
GoodMoat Analysis
Verizon appears to be a stable, high-yield business with a significant margin of safety based on the GoodMoat target price. Its moat is built on scale and regulatory barriers, but its growth is low and debt is elevated. This profile is typical of a mature utility-like stock, which may be of interest to income-focused value investors.
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Verizon Communications Inc is a leading telecommunications provider in the US, offering wireless, broadband, and enterprise services. Applying the GoodMoat framework, its primary competitive advantages (Section 1: Moat) stem from scale privilege and regulatory barriers. It operates a massive, capital-intensive network infrastructure that is difficult to replicate, and it holds valuable wireless spectrum licenses—a classic regulatory moat. However, its growth profile is modest, with revenue up only 2.0% YoY, and it faces high competition in a mature market, limiting other moat sources like pricing power or network effects.
Moving to the Decision Framework (Section 6), the key consideration is valuation versus quality. The GoodMoat target price of $68.66, compared to the current $50.37, suggests a margin of safety of approximately 36%, which falls into the 'Favourable' (20-40%) band. This indicates the stock is priced below its estimated intrinsic value. The high FCF Yield of 9.5% and dividend yield of 5.41% support this value case. However, investors must weigh this against the company's financial structure, notably a Debt/Equity ratio of 1.74, which is a point of caution. For a value investor, Verizon represents a potential opportunity in a stable, cash-generating business trading at a discount, but further investigation into its debt management and ability to sustain growth in a competitive landscape is warranted.
Analysis based on data as of 2024-05-15.
Market Cap$193.87B
Current Price$45.98
P/E Ratio11.29
Forward P/E—
PEG Ratio-0.21
EPS$4.06
Book Value$24.77
P/B Ratio1.86
VZ Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 162.6B
Revenue
131.9B
FY19
128.3B
FY20
133.6B
FY21
136.8B
FY22
134.0B
FY23
134.8B
FY24
138.2B
FY25
Net Income
19.3B
FY19
17.8B
FY20
22.1B
FY21
21.3B
FY22
11.6B
FY23
17.5B
FY24
17.2B
FY25
VZ 52-Week Range
$37.17
$50.60
50-Day MA: $48.50200-Day MA: $42.30
Did you know?
Trading 39% below its estimated fair value of $64.08.
Verizon Communications Inc (VZ) Financial Summary
Verizon Communications Inc (VZ) is a Communication Services company in the Telecom Services industry, listed on NYSE. The stock currently trades at $45.98 with a market capitalization of $193.87B.
Key valuation metrics include a P/E ratio of 11.29, price-to-book ratio of 1.86, and EPS of $4.06. The company reports a profit margin of 12.4% and return on equity of 16.4%.
VZ Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $193.87B |
| P/E Ratio | 11.29 |
| EPS | $4.06 |
| P/B Ratio | 1.86 |
| P/S Ratio | 1.40 |
| EV/EBITDA | 7.54 |
| Dividend Yield | 5.92% |
| Profit Margin | 12.4% |
| Return on Equity | 16.4% |
| Debt/Equity | 1.74 |
VZ Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $131.87B | $19.27B |
| FY20 | $128.29B | $17.80B |
| FY21 | $133.61B | $22.07B |
| FY22 | $136.84B | $21.26B |
| FY23 | $133.97B | $11.61B |
| FY24 | $134.79B | $17.51B |
| FY25 | $138.19B | $17.17B |
Verizon Communications Inc (VZ) Valuation
Based on GoodMoat's DCF model, Verizon Communications Inc has a fair value estimate of $64.08. At the current price of $45.98, the stock appears 28.2% undervalued relative to our intrinsic value estimate.
VZ Quality Indicators
Verizon Communications Inc maintains a profit margin of 12.4% and an operating margin of 21.2%. Return on equity stands at 16.4%. The current ratio is 0.91. Debt-to-equity ratio is 1.74.
About Verizon Communications Inc
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $136.8 billion in 2022. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
VZ Free Cash Flow
Verizon Communications Inc generated $20.13B in trailing twelve-month free cash flow, representing an FCF yield of 10.38%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
VZ Shares Outstanding
Verizon Communications Inc has 4.22 billion shares outstanding at a share price of $45.98, giving it a market capitalization of $193.87B.
VZ Recent Insider Trades
Recent insider transactions at Verizon Communications Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Stillwell Mary-Lee (SVP and Controller) | SELL | 8,569 | $428450.00 |
| Vestberg Hans Erik | SELL | 200,000 | $9.92M |
| Russo Joseph J. (EVP&Pres-Global Networks&Tech) | SELL | 9,579 | $429905.52 |