Verizon Stock Analysis (NYSE:VZ)

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$46.7 $0.35 (0.74%) VZ stock closing price Apr 25, 2017 (Closing)
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Verizon
Updated on : Apr 25, 2017
previous close
VZ 46.7 (0%)
NASDAQ 6025.5 (0%)
Closing Price On: Apr 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless National
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2%
Operating Profit
Operating Margin:
21.3%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
116.55B
Debt/Equity Ratio:
 4.66
Compared to the industry
Cash Flow
Operating cash flow:
$1.68B
Net Income:
$3.45B
Dividend Yield
VZ dividend yield:
4.93%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
High Dividend Yield
PE Valuation
Recent Growth
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
VZ PS :
1.5
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.5%
Return on Equity:
54.8%
Free Cash Flow Margin:
-4.6%
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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 (3.4/5)

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%.

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