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:2026-04-17 17:42:47
Analysis based on real financial data. A total of 5 financial reports were used for financial analysis, covering periods from 2024-12-31 to 2025-12-31. Valuation data is as of the analysis date (2026-04-18).
Overview

Verizon Communications Inc. (VZ) is a leading global telecom provider with stable, modest profitability and a high dividend yield. Its financial health shows mixed results with high debt levels typical for the capital-intensive telecom sector, but also presents potential liquidity constraints. The stock is considered fairly valued to slightly undervalued based on fundamental metrics, making it suitable for income-oriented and value-focused investors.

Valuation
6/10
Profitability
5/10
Financial health
4/10
Operation Advice
  • Maintain existing positions for dividend income.
  • Potential new buyers could consider initiating a position on further price weakness, as the current price is near the lower end of its recent trading range and within the calculated fair value range.
  • The stock lacks clear catalysts for substantial near-term capital appreciation.

Valuation

P/E TTM
12.02
P/E LYR
9.59
P/B MRQ
1.98
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is fairly valued to slightly undervalued. The forward P/E of 9.59 and TTM P/E of 12.02 are low, indicating the stock is inexpensive relative to earnings. The current price sits within calculated fair value ranges and is near the lower end of its recent trading range.
  • The current stock price is $46.55.
  • The forward P/E is 9.59 and the trailing-twelve-month (TTM) P/E is 12.02. Both metrics are low, suggesting the stock is inexpensive relative to its earnings.
  • The P/B ratio is 1.98. Given the high ROE, a P/B near 2.0 can be considered reasonable.
  • The P/S ratio of 1.41 is in line with a mature, low-growth telecom operator.
  • Using the TTM EPS of ~$3.87 and a sector-typical P/E range of 10x-14x, the fair value range is approximately $38.70 to $54.18.
  • Using the forward P/E of 9.59 and the FY2025 EPS of $4.06, and adjusting for a reasonable P/E of 10x-12x, yields a fair value range of $40.60 to $48.72.
  • The current price of $46.55 sits within the calculated fair value ranges and below the midpoint of the higher range.
  • Compared to its own recent 60-day trading range (approximately $39 to $51), the current price is near the lower end.
  • The valuation metrics (low P/E, moderate P/B) suggest the stock is fairly valued to slightly undervalued at the current price.
Valuation trend

Profitability

ROE TTM
16.86%
Net margin
12.74%
Gross margin
58.92%
Total revenue
138.19B
AI Analysis
  • Verizon demonstrates stable, albeit modest, profitability with slow revenue growth, healthy gross margins, and a strong Return on Equity (ROE). However, annual net profit saw a slight year-over-year decline.
  • Annual revenue growth for FY 2025 was 2.52%, showing slow but positive top-line expansion.
  • The company maintains healthy gross margins around 59%.
  • The net margin for FY 2025 is a solid 12.74%.
  • The annual net profit saw a slight year-over-year decline of -1.90%.
  • The Return on Equity (ROE) of 16.86% is strong, indicating efficient use of shareholder capital.
  • The Return on Assets (ROA) of 4.35% is modest, reflecting the asset-heavy nature of the business.
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
  • The company's financial health shows a mixed picture with potential short-term liquidity constraints due to low current and quick ratios, and very high debt levels typical for the capital-intensive telecom sector.
  • The current ratio of 0.91 and quick ratio of 0.87 indicate potential short-term liquidity constraints, as both are below the ideal threshold of 1.0.
  • This suggests the company may rely on operating cash flow or external financing to meet its immediate obligations.
  • The debt-to-asset ratio of 73.84% is very high, which is typical for capital-intensive telecom companies that finance network infrastructure with significant debt.
  • This high leverage increases financial risk, particularly in a rising interest rate environment, but is a known characteristic of the sector.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset73.86%73.17%72.77%72.61%73.84%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.630.610.640.740.91