Verizon Communications Inc

Telecommunications
Telecommunications Equipment
www.verizon.com

Earnings Score
Moat Score
Safety Score

Market Cap $166.45B
PE 17
Debt $150.64B
Cash $5.39B
EV $311.70B
FCF $18.54B

Earnings

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Sales & Net Margins

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Earnings	$9.80B
EBIT	$21.87B
ROE	10%
ROA	6%
FCF	$18.54B
Equity	$97.67B
Growth Stability	57%
PE	16.99
PEG	-1.83
PB	1.7
P/FCF	8.98
P/S	1.24
Price/Cash	0.03
Debt/Equity	1.54
Debt/FCF	8.13
Net Margins	13%
Op. Margins	16%
Earnings CAGR	-2%
Sales Growth YoY	-0%
Sales Growth QoQ	2%
Sales CAGR	1%
FCF CAGR	15%
Equity CAGR	24%
Earnings Stability	0.02
Earnings Growth YoY	-31%
Earnings Growth QoQ	-28%
Earnings CAGR 5Y	-9%

Sales CAGR 5Y	1%
FCF CAGR 5Y	-5%
Equity CAGR 5Y	11%
Earnings CAGR 3Y	-0%
Sales CAGR 3Y	-0%
FCF CAGR 3Y	8%
Equity CAGR 3Y	6%
Market Cap	$166.45B
Revenue	$134.24B
Dividend Yield	7%
Payout Ratio	114%
Assets	$381.16B
Total Debt	$150.64B
Cash	$5.39B
Shares Outstanding	4.21B
EV	311.7B
Earnings Score	6%
Moat Score	84%
Safety Score	60%
Final Score	50%
Working Capital	-21.18B
Current Ratio	0.66
Shares Growth 3y	0%
Equity Growth QoQ	0%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Verizon is primarily a wireless business (nearly 80% of revenue and nearly all operating income). It serves about 93 million postpaid and 24 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services.

SEC Filings

Direct access to Verizon Communications Inc (VZ) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30

Sector Comparison

How does Verizon Communications Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Verizon Communications Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability 2%

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Verizon Communications Inc Discounted Cash Flow

Fully customizable DCF calculator online for Verizon Communications Inc.

Years

Calculation mode

= $526B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$19B	$21B	$24B	$28B	$32B	$37B	$43B	$49B	$57B	$65B	$75B	$748B
DCF		$19B	$20B	$21B	$22B	$23B	$24B	$25B	$26B	$28B	$29B	$288B
Value	$526B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	14%	10%	24%	12%	15%	14%	17%	16%	9%	13%
ROA	-	11%	11%	8%	10%	9%	9%	8%	6%	6%
ROE	-	55%	67%	28%	31%	26%	27%	23%	12%	10%

Good Net Margins (12.61%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	19.55	14.94	6.79	6.87	5.71	8.22	11.42	8.75	8.13
Debt over Equity	6.53	4.6	2.69	2.2	1.95	1.94	1.9	1.74	1.74	1.54
Growth Stability	-	-	-	76%	98%	82%	100%	100%	57%	57%

Bad Debt/FCF ratio (8.13)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (1.54)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (57%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-4%	0%	4%	1%	-3%	4%	2%	-2%	1%
Earnings YoY growth	-	-27%	129%	-48%	24%	-8%	24%	-4%	-45%	-9%
Equity YoY growth	-	35%	86%	22%	15%	10%	20%	11%	1%	11%
FCF YoY growth	-	-73%	42%	119%	1%	32%	-18%	-27%	33%	-5%