Verizon Stock Analysis (NYSE:VZ)
Verizon Analysis Video
View Verizon stock analysis video. This is our VZ analyst opinion covering the buy and sell arguments for VZ stock.
Verizon Communications Inc. Stock Rating (3.3/5)
Our Verizon stock opinion is based on fundamentals of the company. This Verizon stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy VZ stock?
- Verizon's average operating margin of 21.5% was exceptional.
- Net margins came in at average 10.4% for Verizon over the last twelve months.
- The price to earnings multiple of 12.8 is attractive when compared with the industry average PE ratio of 25.7.
- VZ stock is trading at a favorable price to sales multiple of 1.6 as against the Wireless National industry average multiple of 2.6.
- Verizon's dividend yield of 4.61% is attractive.
- Verizon has an attractive ROIC (Return on Invested Capital) of 10.7%
- Verizon has a good Return On Equity (ROE) of 62.7%.
Should you sell VZ stock?
- Verizon revenue saw a decline of -5.6% YoY in 2016 Q4.
- Long term revenue growth of 2.6% over the past 5 years has been disappointing.
- Verizon has a debt/equity ratio of 4.5, which is worse than the average in the Computer and Technology sector.
- Verizon has a negative FCF (Free Cash Flow) margin of -1.8%.