Verizon Stock Analysis (NYSE:VZ)

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$52.25 $0.49 (0.93%) VZ stock closing price Jan 18, 2017 (Closing)
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Verizon
Updated on : Jan 18, 2017
previous close
VZ 52.3 (0%)
NASDAQ 5555.7 (0%)
Closing Price On: Jan 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless National
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.3%
Operating Profit
Operating Margin:
22.5%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
106.59B
Debt/Equity Ratio:
 4.85
Compared to the industry
Cash Flow
Operating cash flow:
$4.8B
Net Income:
$3.62B
Dividend Yield
VZ dividend yield:
4.36%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
High Dividend Yield
PE Valuation
Recent Growth
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
VZ PS :
1.7
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.3%
Return on Equity:
73.6%
Free Cash Flow Margin:
2.2%
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Verizon Analysis Video

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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 (3.6/5)

Our Verizon stock opinion is based on fundamentals of the company. This Verizon stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy VZ stock?

  • Verizon had a healthy average operating margin of 22.5% over the last 4 quarters.
  • Net margins came in at average 11% for Verizon over the last twelve months.
  • VZ stock is trading at an earnings multiple of 13.4 which is better than the industry average of 25.5.
  • When compared with the Wireless National industry average PS ratio of 2.4, the price-to-sales ratio of 1.7 for VZ stock is attractive.
  • The company has a healthy dividend yield of 4.36%.
  • Verizon's return on invested capital of 11.3% is good.
  • The LTM ROE of 73.6% for Verizon is attractive.

Should you sell VZ stock?

  • Verizon sales shrank by -6.7% year-over-year in 2016 Q3.
  • Over the last 5 years, the company registered a poor revenue growth of .
  • With a debt/equity ratio of  4.85, Verizon is highly leveraged in comparison to Computer and Technology peers.

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