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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anterix, Inc.

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Liberty Broadband Corp.

T-Mobile US, Inc.

Spok Holdings, Inc.

Gogo, Inc.

Telephone & Data Systems, Inc.

ATN International, Inc.

Globalstar, Inc.

Verizon Communications, 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 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.

15.95%

-0.02

21.44%

S&P 500

13.95%

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)

1.10%

EBIT Growth (5y)

0.52%

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

64.77%

Pledged Shares

Institutional Holding

67.98%

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

1.90

EV to EBIT

10.51

EV to EBITDA

6.65

EV to Capital Employed

1.38

EV to Sales

2.41

PEG Ratio

1.02

Dividend Yield

45.88%

ROCE (Latest)

13.16%

ROE (Latest)

19.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

8What is working for the Company

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 %

OPERATING PROFIT(Q)

Highest at USD 12,807 MM

PRE-TAX PROFIT(Q)

Highest at USD 6,521 MM

NET PROFIT(Q)

Highest at USD 4,934.81 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Interest Coverage Ratio

Highest at 781.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 5.17 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 12,807 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 6,521 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 4,934.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 161.17 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Depreciation

Highest at USD 4,635 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)