StockCV
Verizon Communications logo

Verizon Communications

Telephone Communications (No Radiotelephone)

$41.82
-9.78%
Market cap $174B

Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier.

It is a $174B communication services company. Revenue grew 1.4% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~3.1 years of free cash flow. It trades at 10.6× earnings — in the most expensive third of its own history.

Location
New York, NY
Employees
89 900
Sector
Communication Services
Founded
1984
Moved -6.6% on Oct 9, 20264.8σ — unusual for this stockSpaceX's aggressive entry into the telecom market and spectrum deal triggered widespread panic selling across wireless stocks.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation80Growth26Profitability65Health22Quality55Moat74

Strong valuation; Growth and Health lag behind.

Valuation80
  • P/E vs own history67th pct · 5/25
  • FCF yield22.3% · 25/25
  • P/S1.2x · 25/25
  • EV/EBITDA7.0x · 25/25
Growth26
  • Revenue CAGR0.8% · 6/25
  • Net income CAGR-6.1% · 0/25
  • EPS CAGR ~5Y-1.1% · 0/25
  • Fwd implied growth18.4% · 20/25
Profitability65
  • ROIC7.6% · 5/25
  • ROE15.5% · 20/25
  • Net margin11.6% · 20/25
  • Operating margin20.6% · 20/25
Health22
  • Altman Zn/a · 0/25
  • Current ratio0.60 · 0/25
  • Interest coverage4.6x · 10/25
  • Net cash / debtD/A 30% · 12/25
Quality55
  • Piotroski F4/9 · 10/25
  • Beneish M-2.38 · 20/25
  • FCF conversionn/a · 0/25
  • Margin stabilityσ 1.8% · 25/25
Moat74
  • ROIC >12% years4/10 yrs · 6/25
  • Median gross margin58.7% · 25/25
  • FCF-positive years3/3 yrs · 25/25
  • Worst-year net marginworst 8.7% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. FY2017Financial
    Best year on record
    $30.1B net income
  2. 2017Acquisition
    Acquired Yahoo
    $4.5B — later written off; the media detour
  3. FY2016Financial
    Profitable every year on record
    10 consecutive profitable years in our data
  4. FY2016Financial
    Revenue already above $100B
    $126B in first reported year
  5. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  6. 2015Acquisition
    American Tower Corp. acquired the exclusive right to lease, acquire or otherwise operate and manage many of…
  7. Feb 21, 2014Milestone
    The deal closed on February 21, 2014, and became the third largest corporate deal ever signed, giving Verizon…
  8. 2013Acquisition
    Bought out Vodafone's stake
    $130B for full control of Verizon Wireless — among the largest deals ever
  9. 2011Acquisition
    Verizon acquired Terremark, an information technology services company, for $1.4 billion in early 2011
  10. 2009Acquisition
    The company spun off wirelines in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina,…
  11. 2008Acquisition
    Verizon acquired Rural Cellular Corp. for $2.7 billion in cash and assumed debt in 2008
  12. 2005Acquisition
    It sold 700,000 lines in Hawaii in 2005, and spun off lines in Maine, New Hampshire and Vermont in January 2007
  13. 2000Acquisition
    Bell Atlantic became Verizon Communications in June 2000, when the FCC approved the merger with telephone company…
  14. Jun 30, 2000Milestone
    Verizon formed
    Bell Atlantic merges with GTE — the new name launches
  15. Jan 1, 1984Founded
    Bell Atlantic born in the breakup
    one of the seven Baby Bells from the AT&T split

Achievements

Verifiable track record, straight from the reported numbers.

#1 largest of 23 Communication Services companies by market cap
Raised its dividend 15+ consecutive years
$10 000 invested in 2021 would be worth ~$7 686 today — price return only
$138.2B revenue in FY2025
Profitable 10 years in a row
Positive free cash flow 10 years in a row
89 900 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • High gross margin (59.4%)
  • Strong cash conversion — FCF is 27.9% of revenue

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

9 of 11 checks passed
  • Revenue growing+1.4% YoY
  • Profitable$16.2B TTM
  • Profit growing-7.1% YoY
  • Generates cash$38.8B TTM
  • Debt under control~3.1y of cash flow to repay
  • Established company$174B market cap
  • Not printing shares+2.1% shares over ~5y
  • Proven track record10/10 profitable years
  • Financially stablehealth score 10/100
  • Pays a dividendyield 6.81%
  • Valuation not extremeP/E 10.6
Peer comparisonVerizon Communications vs 6 largest communication services peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
VZ this company$173.7B10.6+1.4%11.6%Strained
TMUS T-Mobile US, Inc.$159.6B15.1+9.7%11.5%Strained
T AT&T Inc.$152.3B7.1+2.6%16.9%Strained
WBD Warner Bros. Discovery, Inc. Series A$77.6B106.6-6.1%-8.8%Strained
CMCSA Comcast Corp$73.4B6.5+0.6%9.0%Strained
ECHO EchoStar Corporation$27.7B—-5.2%-38.7%Mixed
FOXA Fox Corporation$26.3B14.8+5.1%9.8%Mixed

Head-to-head: VZ vs TMUS · VZ vs T · VZ vs WBD

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 7Buy 11Hold 18

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of VZ on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $41.82 · market cap $174B.