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 (3.4/5)
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 price to earnings multiple of 16.8 is attractive when compared with the industry average PE ratio of 25.6.
- The lower PS ratio 1.6 for VZ stock versus Wireless National industry average of 2.6 is a positive for the company.
- The company has a healthy dividend yield of 4.87%.
- Verizon's return on invested capital of 10.5% is good.
- Verizon has a good Return On Equity (ROE) of 54.8%.
Should you sell VZ stock?
- Verizon sales declined by -7.3% year on year in 2017 Q1.
- Revenue growth of 2% has been weak over the last 5 years.
- 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 0.5 times net income which is a negative signal.
- The company has a negative free cash flow margin of -4.6%.