# Verizon Communications (VZ) — Stock CV

Verizon Communications 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.

> 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.

## Identity

- **Ticker**: VZ
- **Sector**: Communication Services
- **Industry**: Telephone Communications (No Radiotelephone)
- **Headquarters**: NEW YORK, NY
- **Employees**: 89 900
- **Website**: https://www.verizon.com
- **Market cap**: $174B
- **Last price**: $41.82
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $139B
- **Net income**: $16.2B
- **Free cash flow**: $38.8B
- **Net debt**: $120B
- **P/E**: 10.6
- **Revenue growth (YoY)**: 1.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 80 |
| Growth | 26 |
| Profitability | 65 |
| Health | 22 |
| Quality | 55 |
| Moat | 74 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +1.4% YoY
- [x] Profitable — $16.2B TTM
- [ ] Profit growing — -7.1% YoY
- [x] Generates cash — $38.8B TTM
- [x] Debt under control — ~3.1y of cash flow to repay
- [x] Established company — $174B market cap
- [x] Not printing shares — +2.1% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 10/100
- [x] Pays a dividend — yield 6.81%
- [x] Valuation not extreme — P/E 10.6

## Experience (career milestones)

- **FY2017** — Best year on record: $30.1B net income
- **2017** — Acquired Yahoo: $4.5B — later written off; the media detour
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $100B: $126B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2015** — American Tower Corp. acquired the exclusive right to lease, acquire or otherwise operate and manage many of…
- **Feb 21, 2014** — The deal closed on February 21, 2014, and became the third largest corporate deal ever signed, giving Verizon…
- **2013** — Bought out Vodafone's stake: $130B for full control of Verizon Wireless — among the largest deals ever
- **2011** — Verizon acquired Terremark, an information technology services company, for $1.4 billion in early 2011
- **2009** — The company spun off wirelines in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina,…
- **2008** — Verizon acquired Rural Cellular Corp. for $2.7 billion in cash and assumed debt in 2008
- **2005** — It sold 700,000 lines in Hawaii in 2005, and spun off lines in Maine, New Hampshire and Vermont in January 2007
- **2000** — Bell Atlantic became Verizon Communications in June 2000, when the FCC approved the merger with telephone company…
- **Jun 30, 2000** — Verizon formed: Bell Atlantic merges with GTE — the new name launches
- **Jan 1, 1984** — Bell Atlantic born in the breakup: one of the seven Baby Bells from the AT&T split

## Strengths

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

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $134B | $22.1B | $39.5B |
| FY2022 | $137B | $21.3B | $37.1B |
| FY2023 | $134B | $11.6B | $37.5B |
| FY2024 | $135B | $17.5B | $36.9B |
| FY2025 | $138B | $17.2B | $37.1B |

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Source: https://stockcv.com/VZ — derived from company filings; may be delayed or incomplete. Information, not investment advice.