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?
- The TTM operating margin was good at 21.3% for Verizon.
- LTM Net margins were good at 9.9% for Verizon.
- The Verizon stock currently trades at a price to earnings ratio of 12.4. We rate this as a positive, compared to the industry average of 26.1.
- When compared with the Wireless National industry average PS ratio of 2.7, the price-to-sales ratio of 1.5 for VZ stock is attractive.
- The company has a healthy dividend yield of 4.93%.
- Verizon's return on invested capital of 10.5% is good.
- 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 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 low at 0.5 times the net income.
- Verizon has a negative FCF (Free Cash Flow) margin of -4.6%.