Verizon Communications, Inc. (VZ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Verizon Communications, Inc.

Telephone & Data Systems, Inc.

Anterix, Inc.

T-Mobile US, Inc.

Gogo, Inc.

AT&T, Inc.

United States Cellular Corp.

ATN International, Inc.

Liberty Broadband Corp.

Globalstar, Inc.

Spok Holdings, Inc.

Why is Verizon Communications, Inc. ?

High Management Efficiency with a high ROCE of 13.00%

Poor long term growth as Net Sales has grown by an annual rate of 1.10% and Operating profit at 0.52% over the last 5 years

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at USD 5.17
INTEREST COVERAGE RATIO(Q) Highest at 781.39
DEBT-EQUITY RATIO (HY) Lowest at 161.17 %

With ROCE of 13.16%, it has a very attractive valuation with a 1.38 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.22%, its profits have risen by 9.8% ; the PEG ratio of the company is 1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.22% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Verizon Communications, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Verizon Communications, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Verizon Communications, Inc.

7.15%

-0.02

21.44%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.50%

EBIT Growth (5y)

1.17%

EBIT to Interest (avg)

6.81

Debt to EBITDA (avg)

3.06

Net Debt to Equity (avg)

1.34

Sales to Capital Employed (avg)

0.55

Tax Ratio

22.10%

Dividend Payout Ratio

67.38%

Pledged Shares

Institutional Holding

69.20%

ROCE (avg)

13.00%

ROE (avg)

23.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.10

EV to EBIT

11.09

EV to EBITDA

7.02

EV to Capital Employed

1.49

EV to Sales

2.54

PEG Ratio

Dividend Yield

5.24%

ROCE (Latest)

13.44%

ROE (Latest)

18.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.2

OPERATING PROFIT(Q)

Highest at USD 13,395 MM

OPERATING PROFIT MARGIN(Q)

Highest at 38.89 %

PRE-TAX PROFIT(Q)

Highest at USD 6,980 MM

NET PROFIT(Q)

Highest at USD 5,193.68 MM

EPS(Q)

Highest at USD 1.2

-1What is not working for the Company

INTEREST(Q)

Highest at USD 1,922 MM

Here's what is working for Verizon Communications, Inc.

Dividend per share

Highest at USD 5.2 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 13,395 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 38.89 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 6,980 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 5,193.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Depreciation

Highest at USD 4,892 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Verizon Communications, Inc.

Interest

Highest at USD 1,922 MM

in the last five periods and Increased by 9.89% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)