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

Anterix, Inc.

Gogo, Inc.

United States Cellular Corp.

AT&T, Inc.

Telephone & Data Systems, Inc.

Spok Holdings, Inc.

Verizon Communications, Inc.

Globalstar, Inc.

T-Mobile US, Inc.

ATN International, Inc.

Liberty Broadband Corp.

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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Verizon Communications, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Verizon Communications, Inc.

15.82%

-0.02

21.44%

S&P 500

13.5%

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)

1.03%

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

69.10%

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

2.13

EV to EBIT

11.25

EV to EBITDA

7.11

EV to Capital Employed

1.50

EV to Sales

2.56

PEG Ratio

Dividend Yield

5.17%

ROCE (Latest)

13.35%

ROE (Latest)

18.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 155.33 %

DIVIDEND PER SHARE(HY)

Highest at USD 5.09

DIVIDEND PAYOUT RATIO(Y)

Highest at 124.8%

NET SALES(Q)

Highest at USD 36,381 MM

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 666.38

INVENTORY TURNOVER RATIO(HY)

Lowest at 32.05 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.09 times

OPERATING PROFIT(Q)

Lowest at USD 11,655 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 32.04 %

PRE-TAX PROFIT(Q)

Lowest at USD 5,109 MM

NET PROFIT(Q)

Lowest at USD 3,977.2 MM

EPS(Q)

Lowest at USD 0.55

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

Debt-Equity Ratio

Lowest at 155.33 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 5.09 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 36,381 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 124.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest Coverage Ratio

Lowest at 666.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 11,655 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 32.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 5,109 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 3,977.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.55

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 32.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio