VZ

Verizon Communications Inc.

Fundamental data last updated:October 14, 2026

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company profile

SECTOR

Communication Services

industry

Telecommunications Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches. It also provides residential fixed connectivity solutions, such as internet, video, and voice services; and sells network access to mobile virtual network operators. As of December 31, 2021, it had approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and internet access services; and internet protocol-based voice and video services, unified communications and collaboration tools, and customer contact center solutions. This segment also offers a suite of management and data security services; domestic and global voice and data solutions, such as voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and Internet of Things products and services. As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

 


VALUATION

P/E

11.60

Market Cap ($M USD)

$199.65B

Forward P/E

7.39

PEG

0.13

PRICE TO SALES

1.43

PRICE TO BOOK

1.95

EV / EBITDA

7.96

5-Year Average P/E

Free Cash Flow Yield

10.04%

DCF Value

$122.69

Graham Number

$47.74

Price to FCF

9.96

EV to FCF

19.31

Earnings Yield

8.62%

FCF Yield

10.04%

DIVIDEND

Yield

5.78%

Annual Payout

$2.77

Payout Ratio

66.52%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.12

Next Year EPS Growth Estimate

$6.47

Next Year Revenue Growth Estimate

$151.28B

Return on Equity (ROE)

16.68%

FREE CASH FLOW

Operating Margin

21.22%

Debt-to-Equity

1.92

Piotroski F-Score

7

Altman Z-Score

1.21

Return on Invested Capital (ROIC)

8.48%

Current Ratio

0.64

Quick Ratio

0.61

Net Debt to EBITDA

3.85

Interest Coverage

4.22

Gross Profit margin

58.85%

FCF PER SHARE

$4.77

REVENUE PER SHARE

$33.09

Gainseekers Quantitative Analysis

Summary

Verizon’s valuation paints a compelling picture for deep value investors. The stock has been trading significantly below its DCF value, suggesting a market mispricing that savvy investors might exploit. With a Forward P/E of just 7.42, the market seems to be underestimating its future earnings potential. However, the Altman Z-score of 1.21 raises concerns about financial stability, hinting at potential distress. Despite these risks, the earnings yield of 8.60% indicates a robust return potential relative to its price.

AI Exposure / Tech Reliance

As a telecommunications giant, Verizon is strategically positioned to leverage AI and modern tech advancements. The industry's inherent need for cutting-edge infrastructure aligns well with AI integration, potentially enhancing network efficiency and customer service. Verizon's focus on 5G technology further underscores its commitment to staying at the forefront of tech evolution.

The Bull Case

For value and GARP investors, Verizon offers a tantalizing opportunity. The company boasts a solid ROIC of 8.48%, reflecting efficient capital allocation and strong profitability. A Piotroski F-Score of 7 signals financial strength, while a healthy FCF yield of 10.01% underscores its ability to generate cash. With an operating margin of 21.22%, Verizon demonstrates significant pricing power, making it an attractive buy for those seeking stable returns.

The Bear Case

Despite its strengths, Verizon faces notable challenges. The company's high Debt/Equity ratio of 1.92 raises red flags about its leverage and potential vulnerability to interest rate hikes. Trading close to its 52-week high, the stock may be technically overextended, limiting immediate upside potential. Additionally, a low Current Ratio of 0.64 suggests liquidity constraints, which could hinder operational flexibility in turbulent times.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$51.56

Institutional Ownership %

1-Year Beta

0.22

Insider Buying % (6 Mo)

Distance to 52-Week High

8.08%

Distance to 52-Week Low

19.71%

EARNINGS SURPRISE %

5.79%

50-DAY SMA

$47.91

200-DAY SMA

$44.26

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.