NYSE:VZ

Stock Analysis Report

Verizon Communications

Executive Summary

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide.

Snowflake

Fundamentals

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has Verizon Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

NYSE:VZ

2.4%

US Telecom

2.9%

US Market


1 Year Return

4.5%

NYSE:VZ

3.3%

US Telecom

0.2%

US Market

VZ outperformed the Telecom industry which returned 1.6% over the past year.

VZ outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

VZIndustryMarket
7 Day1.6%2.4%2.9%
30 Day2.0%5.2%-2.3%
90 Day-3.9%2.9%3.1%
1 Year9.0%4.5%8.7%3.3%2.4%0.2%
3 Year23.4%7.7%8.6%-7.2%41.7%32.4%
5 Year43.8%14.5%28.2%-1.0%55.1%37.9%

Price Volatility Vs. Market

How volatile is Verizon Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Verizon Communications undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Verizon Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

Verizon Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Verizon Communications is overvalued based on earnings compared to the US Telecom industry average.

Verizon Communications is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Verizon Communications is poor value based on expected growth next year.


Price Based on Value of Assets

Verizon Communications is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Verizon Communications expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Verizon Communications's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).

Verizon Communications's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Verizon Communications's revenue growth is positive but not above the United States of America market average.

Verizon Communications's earnings growth is positive but not above the United States of America market average.

Verizon Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Verizon Communications is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Verizon Communications performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Verizon Communications's year on year earnings growth rate has been positive over the past 5 years.

Verizon Communications's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Verizon Communications's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Whilst Verizon Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Verizon Communications used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Verizon Communications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Verizon Communications's financial position?


Financial Position Analysis

Verizon Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Verizon Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Verizon Communications's level of debt (195.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (686.3% vs 195.3% today).

Debt is well covered by operating cash flow (29.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Verizon Communications's current dividend yield, its reliability and sustainability?

4.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Verizon Communications's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Verizon Communications's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Verizon Communications's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Hans Vestberg (54yo)

1.0yrs

Tenure

US$22,206,086

Compensation

Mr. Hans E. Vestberg has been Chief Executive Officer at Verizon Communications Inc. since August 01, 2018 and served as its Executive Chairman until January 2019. He has been the Chairman of the Board at  ...


CEO Compensation Analysis

Hans's remuneration is higher than average for companies of similar size in United States of America.

Hans's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

51yo

Average Age

The average tenure for the Verizon Communications management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

59.5yo

Average Age

The tenure for the Verizon Communications board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$16,221,23928 Feb 19
Lowell McAdam
EntityIndividual
Shares285,988
Max PriceUS$56.72

Ownership Breakdown


Management Team

  • Marc Reed (60yo)

    Executive VP & Strategic Advisor to the Chairman

    • Tenure: 0.1yrs
    • Compensation: US$7.35m
  • Jim Gerace (55yo)

    Senior VP & Chief Communications Officer

    • Tenure: 6.2yrs
  • Hans Vestberg (54yo)

    Chairman & CEO

    • Tenure: 1.0yrs
    • Compensation: US$22.21m
  • Ronan Dunne (56yo)

    Executive VP & Group CEO of Verizon Consumer

    • Tenure: 0.6yrs
    • Compensation: US$6.71m
  • Kyle Malady (51yo)

    Executive VP & CTO

    • Tenure: 1.6yrs
  • Craig Silliman (51yo)

    Executive VP & Chief administrative

    • Tenure: 0.6yrs
  • Diego Scotti (46yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 4.8yrs
  • Matt Ellis (48yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$7.06m
  • K. Gowrappan (38yo)

    Executive VP & Group CEO of Verizon Media

    • Tenure: 0.0yrs
    • Compensation: US$12.75m
  • Brady Connor

    Senior Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Dan Schulman (61yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$264.87k
  • Clarence Otis (63yo)

    Lead Director

    • Tenure: 0.4yrs
    • Compensation: US$341.50k
  • Shellye Archambeau (56yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$313.67k
  • Vittorio Colao (57yo)

    Independent Director

    • Tenure: 0.3yrs
  • Rodney Slater (64yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$304.00k
  • Mark Bertolini (62yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$306.00k
  • Hans Vestberg (54yo)

    Chairman & CEO

    • Tenure: 1.0yrs
    • Compensation: US$22.21m
  • Melanie Healey (58yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$312.00k
  • Kathee Tesija (56yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$312.00k
  • Greg Weaver (67yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$339.50k

Company Information

Verizon Communications Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verizon Communications Inc.
  • Ticker: VZ
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$234.056b
  • Shares outstanding: 4.14b
  • Website: https://www.verizon.com

Number of Employees


Location

  • Verizon Communications Inc.
  • 1095 Avenue of the Americas
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BACXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1983
VZNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1983
0Q1SLSE (London Stock Exchange)YesCommon StockGBUSDNov 1983
VZSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 1983
BACDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1983
VZWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1983
VZ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1983
VZETLX (Eurotlx)YesCommon StockITEURNov 1983
VZSNSE (Santiago Stock Exchange)YesCommon StockCLUSDNov 1983
VZBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDNov 1983
VZBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/2 COM USD0.10ARARSFeb 2011
VERZ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLAug 2012

Biography

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:43
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.