Verizon Stock Analysis (NYSE:VZ)

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$49.64 $0.07 (0.14%) VZ stock closing price Mar 23, 2017 (Closing)
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Verizon
Updated on : Mar 23, 2017
previous close
VZ 49.6 (0%)
NASDAQ 5817.7 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless National
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.6%
Operating Profit
Operating Margin:
21.5%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
108.08B
Debt/Equity Ratio:
 4.5
Compared to the industry
Cash Flow
Operating cash flow:
$5.09B
Net Income:
$4.5B
Dividend Yield
VZ dividend yield:
4.61%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
High Dividend Yield
PE Valuation
Recent Growth
Long Term Growth
High Debt Burden
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
VZ PS :
1.6
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.7%
Return on Equity:
62.7%
Free Cash Flow Margin:
-1.8%
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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 (3.3/5)

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 had a healthy average operating margin of 21.5% over the last 4 quarters.
  • Net margins came in at average 10.4% for Verizon over the last twelve months.
  • The Verizon stock currently trades at a price to earnings ratio of 12.8. We rate this as a positive, compared to the industry average of 25.8.
  • 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 is a dividend paying stock with a high yield of 4.61%.
  • Verizon has an attractive ROIC (Return on Invested Capital) of 10.7%
  • The LTM ROE of 62.7% for Verizon is attractive.

Should you sell VZ stock?

  • Verizon revenue saw a decline of -5.6% YoY in 2016 Q4.
  • Revenue growth of 2.6% has been weak over the last 5 years.
  • With a debt/equity ratio of  4.5, Verizon is highly leveraged in comparison to Computer and Technology peers.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -1.8%.

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