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 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%.