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Verizon Communications Inc VZ

Morningstar Rating
$41.08 −0.09 (0.22%)
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Company Report

Verizon Should Generate Solid Cash Flow as 2024 Progresses

Verizon Communications is primarily focused on the wireless business, where it has taken steps to ensure it remains well positioned, building fiber deeper into major metro areas and acquiring wireless spectrum to increase network capacity and performance. While we expect growth will be very modest, we expect Verizon and its two primary wireless rivals will compete rationally, allowing each to generate consistent financial results in the coming years.

Price vs Fair Value

VZ is trading at a 129% premium.
Price
$41.17
Fair Value
$96.00
Uncertainty
Medium
1-Star Price
$72.60
5-Star Price
$33.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

A focus on network strength over the past 15 years has put Verizon in an enviable position. Its wireless network provides the broadest coverage in the industry, and its reputation with customers is sterling.

Bears

Wireless technology is dramatically lowering the cost to build and maintain a network. Rival carriers have rapidly deployed new spectrum and technology to add coverage and capacity. Verizon’s network leadership is a thing of the past.

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News

Trading Information

Previous Close Price
$41.17
Day Range
$40.8341.63
52-Week Range
$30.1443.42
Bid/Ask
$41.11 / $41.13
Market Cap
$172.92 Bil
Volume/Avg
18.9 Mil / 17.4 Mil

Key Statistics

Price/Earnings (Normalized)
8.83
Price/Sales
1.30
Dividend Yield (Trailing)
6.43%
Dividend Yield (Forward)
6.46%
Total Yield
6.43%

Company Profile

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
105,400

Competitors

Valuation

Metric
VZ
TMUS
CMCSA
Price/Earnings (Normalized)
8.8321.569.41
Price/Book Value
1.853.371.83
Price/Sales
1.302.701.29
Price/Cash Flow
4.538.055.71
Price/Earnings
VZ
TMUS
CMCSA

Financial Strength

Metric
VZ
TMUS
CMCSA
Quick Ratio
0.520.730.49
Current Ratio
0.710.940.59
Interest Coverage
3.724.425.99
Quick Ratio
VZ
TMUS
CMCSA

Profitability

Metric
VZ
TMUS
CMCSA
Return on Assets (Normalized)
4.66%4.83%6.32%
Return on Equity (Normalized)
18.99%15.54%19.98%
Return on Invested Capital (Normalized)
7.89%7.04%10.60%
Return on Assets
VZ
TMUS
CMCSA
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