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 (3.5/5)
Our Verizon stock opinion is based on fundamentals of the company. This Verizon stock analysis is based on latest Q1 earnings for 2017. 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 21.3% over the last 4 quarters.
- Net margins stood at a healthy 9.9% (average) for Verizon in the Trailing Twelve Months.
- The Verizon stock currently trades at a price to earnings ratio of 11.8. We rate this as a positive, compared to the industry average of 26.4.
- When compared with the Wireless National industry average PS ratio of 2.8, the price-to-sales ratio of 1.5 for VZ stock is attractive.
- Verizon's dividend yield of 5.2% is attractive.
- Verizon has an attractive ROIC (Return on Invested Capital) of 10.5%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Verizon at 54.8%.
Should you sell VZ stock?
- Verizon revenue saw a decline of -7.3% YoY in 2017 Q1.
- Long term revenue growth of 2% over the past 5 years has been disappointing.
- Verizon has a debt/equity ratio of 4.66, which is worse than the average in the Computer and Technology sector.
- Cash flow from operations is low at 0.5 times the net income.
- The company has a negative free cash flow margin of -4.6%.