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:2026-06-11 17:41:44
Analysis based on real data for Verizon Communications Inc. (VZ). Data sources include financial reports. The analysis uses data from 5 financial report periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. The current stock price reference is as of 2026-06-12. Data is considered complete for the stated periods.
Overview

Verizon Communications Inc. (VZ) is a mature, established player in the Telecom Services industry with a stable core business. The analysis reveals a mixed fundamental picture: solid profitability and reasonable valuation are offset by significant financial risks from high leverage and weak liquidity. The stock is suitable for income-oriented investors but lacks a compelling margin of safety for deep-value or growth investors.

Valuation
5/10
Profitability
7/10
Financial health
3/10
Operation Advice
  • The stock is trading near its calculated intrinsic value with no significant margin of safety.
  • For existing shareholders, particularly those focused on income, holding is advised.
  • New investors seeking value or growth should wait for a more attractive entry point, potentially below $45.00, to account for the financial risks.
  • Monitor the company's debt management and liquidity metrics closely.

Valuation

P/E TTM
11.57
P/E LYR
9.59
P/B MRQ
1.94
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is trading at or slightly below its intrinsic value, with a low P/E indicating a market discount. A reasonable fair value range is estimated between $45.00 and $50.00.
  • The dynamic PE of 9.59 and PE-TTM of 11.57 are low compared to broader market averages, suggesting the market is pricing VZ at a discount.
  • The P/B ratio of 1.94 is below 2.0, which is considered reasonable for a utility-like company and does not appear excessive given the strong ROE.
  • The PS-TTM of 1.41 is moderate, aligning with a stable, cash-generative business.
  • The current price of $46.94 is near the lower end of its recent 60-day trading range of approximately $44.30 to $51.68.
  • A simple earnings-based valuation using the PE-TTM of 11.57 and annual diluted EPS of $4.06 yields a value of approximately $46.95, aligning almost exactly with the current market price.
  • Considering stable dividends and the business model, a reasonable fair value range is $45.00 - $50.00.
  • Given the low P/E and high yield, the stock appears to be trading at or slightly below its intrinsic value with no significant margin of safety, but it is not overvalued.
Valuation trend

Profitability

ROE TTM
16.84%
Net margin
14.94%
Gross margin
60.30%
Total revenue
34.44B
AI Analysis
  • Verizon demonstrates solid and stable profitability with strong returns on equity and assets, healthy margins, and stable earnings generation.
  • The Return on Equity (ROE-TTM) of 16.84% is robust, indicating efficient use of shareholder capital.
  • The Return on Assets (ROA-TTM) of 4.31% is reasonable for the asset-heavy telecom sector.
  • The company maintains strong gross margins around 60%.
  • The company maintains net margins consistently near 15%, indicating effective cost management and pricing power.
  • Quarterly net income has shown positive year-over-year growth in recent reports, such as +3.40% in Q1 2026.
  • Annual net profit saw a slight decline of -1.90% for FY 2025.
  • The overall trend points towards stable earnings generation.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--9.77%14.52%16.86%16.84%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue33.48B67.99B101.81B138.19B34.44B

Financial health

Debt/Asset
74.96%
Current ratio
0.64
Quick ratio
0.61
Cash ratio
0.61
AI Analysis
  • The company's financial health shows significant risks due to high leverage and weak liquidity, despite stable revenue growth.
  • The Debt-to-Asset ratio of 74.96% indicates a highly leveraged capital structure, which increases financial risk, especially in a rising interest rate environment.
  • The Current Ratio of 0.64 is significantly below 1.0, suggesting the company may face challenges covering its short-term liabilities.
  • The Quick Ratio of 0.61 is also significantly below 1.0, indicating potential liquidity strain.
  • Recent quarterly reports show consistent, albeit modest, year-over-year revenue growth, such as 2.85% in Q1 2026, demonstrating a stable core business.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset73.17%72.77%72.61%73.84%74.96%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio0.610.640.740.910.64