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

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Liberty Broadband Corp.

Globalstar, 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.

9.57%

-0.02

21.44%

S&P 500

22.36%

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

OPERATING CASH FLOW(Y)

Highest at USD 38,799 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.17

DIVIDEND PAYOUT RATIO(Y)

Highest at 76.95%

RAW MATERIAL COST(Y)

Fallen by -1.88% (YoY

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 629.2

DEBT-EQUITY RATIO (HY)

Highest at 179.49 %

PRE-TAX PROFIT(Q)

Lowest at USD 5,274 MM

NET PROFIT(Q)

Lowest at USD 4,014.7 MM

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

Operating Cash Flow

Highest at USD 38,799 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

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)

Dividend Payout Ratio

Highest at 76.95%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.88% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 5,008 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 Coverage Ratio

Lowest at 629.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at USD 5,274 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 4,014.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 179.49 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio