Verizon Communications Inc.(VZ) - Stock detail

Verizon Communications Inc.

US
VZ
Verizon Communications Inc.(Listing date: 11/25/1983)

Verizon Communications Inc. is a company incorporated in Delaware. It is a holding company and one of the world's leading providers of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities. The company operates globally, offering data, video, and voice services and solutions on its networks and platforms, aiming to meet customers' needs for mobility, reliable network connectivity, and security.

AI Value AnalystHold
Overall Rating5/10
Generated at:2026-03-04 16:37:16
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Market data as of 2026-03-04 close. Comprehensive financial analysis using annual and quarterly reports.
Overview

Verizon Communications Inc. is a leading global communications company with stable revenue growth but faces challenges including high debt levels, liquidity constraints, and modest profitability growth. The company shows reasonable valuation metrics but operates in a mature, competitive telecommunications market.

Valuation
7/10
Profitability
5/10
Financial health
3/10
Operation Advice
  • Maintain existing positions but consider taking profits near $55-56 range if reached.
  • For new positions, implement strict stop-loss around $48.00 (6% downside).
  • Recommended primarily for income-oriented investors seeking telecom exposure.

Valuation

P/E TTM
12.02
P/E LYR
9.59
P/B MRQ
1.98
P/S TTM
--
AI Analysis
  • Valuation metrics indicate potential undervaluation with PE ratios below historical telecom sector averages, though current price is near the upper end of recent trading range with target price ranges suggesting moderate upside potential.
  • Dynamic PE: 9.59x and TTM PE: 12.02x indicate potential undervaluation compared to historical telecom sector averages (typically 15-20x)
  • PB Ratio: 1.98x suggests moderate valuation relative to book value
  • PS Ratio: 1.56x indicates reasonable valuation relative to sales
  • Recent 60-day trading range shows $38.80-$51.41, with current price near the upper end
  • Conservative target price range: $48.00-$52.00 (based on 10-11x forward earnings)
  • Moderate target price range: $52.00-$56.00 (based on 11-12x forward earnings)
  • Optimistic target price range: $56.00-$60.00 (based on 12-13x forward earnings, assuming margin improvement)
Valuation trend

Profitability

ROE TTM
16.86%
Net margin
12.74%
Gross margin
58.92%
Total revenue
138.19B
AI Analysis
  • Profitability shows mixed results with healthy gross margins but net margin compression, efficient equity capital utilization but moderate asset efficiency, and inconsistent earnings growth patterns.
  • ROE of 16.86% and ROA of 4.35% indicate efficient use of equity capital but moderate asset utilization efficiency
  • Gross margin of 58.92% remains healthy
  • Net margin compression to 12.74% (from 13.32% in 2024) suggests increasing operating costs or competitive pressures
  • Quarterly data shows inconsistent earnings growth patterns
  • Q3 2025 showed strong year-over-year net income growth (18.65%)
  • Annual results showed slight net income decline (-1.90%)
  • Consistent profitability supports reputation as reliable dividend payer
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--4.88%9.77%14.52%16.86%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue134.79B33.48B67.99B101.81B138.19B

Financial health

Debt/Asset
73.84%
Current ratio
0.91
Quick ratio
0.87
Cash ratio
0.87
AI Analysis
  • Financial condition shows mixed health with potential liquidity constraints, significant leverage, stable revenue growth but declining net income, reflecting challenges in a capital-intensive industry.
  • Current ratio of 0.91 and quick ratio of 0.87 indicate potential liquidity constraints, falling below ideal threshold of 1.0
  • High debt-to-equity ratio of 73.84% indicates significant leverage, common in capital-intensive telecom industries but increases financial risk
  • Annual revenue growth of 2.52% to $138.19B demonstrates stable but modest growth
  • Net income declined by -1.90% to $17.17B, indicating margin pressure from increased competition or capital expenditures
  • High debt levels could pressure future dividend distributions
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset73.86%73.17%72.77%72.61%73.84%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.630.610.640.740.91