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Verizon Communications (VZ) Stock Analysis

This is a peer-relative look at Verizon Communications (VZ): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Telecommunication Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Verizon Communications (VZ)
Profile ItemVZ
NameVerizon Communications Inc.
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
GICS Sub-IndustryIntegrated Telecommunication Services
Market Capitalization182.81 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateNovember 21, 1983
Security TypeCommon Stock

Price Performance

Cumulative Growth

VZ
GSPC
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Verizon Communications (VZ) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Verizon Communications (VZ) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Verizon Communications (VZ) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
Total Return (1Y)10.07%11.77%
Total Return (3Y, Annualized)16.48%13.32%
Total Return (5Y, Annualized)1.43%1.74%

Risk Profile

Drawdown History

VZ
GSPC
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Verizon Communications (VZ) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Verizon Communications (VZ) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
Volatility (1Y, Annualized)23.86%39.61%
Beta (5Y)0.250.67
Max Drawdown (5Y)-38.38%-59.43%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. VZ is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
Sharpe Ratio (1Y)0.250.25
Sortino Ratio (1Y)0.400.40

Profitability

ROE (TTM)

Verizon Communications (VZ) posts ROE of 17.20%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

VZ

Telecommunication Services industry group

17.20%

Group distribution
Max
43.27%
Q3
18.03%
VZ
17.20%
Median
7.35%
Q1
-7.60%
Min
-37.75%
Largest peers
AMX
21.13%
T
18.37%
TMUS
18.03%
VZ
17.20%
CHT
9.99%
VOD
0.11%
SPCX
--
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Where Verizon Communications (VZ) stands on ROE within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Verizon Communications (VZ) keeps 12.46% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

VZ

Telecommunication Services industry group

12.46%

Group distribution
Max
41.74%
VZ
12.46%
Q3
12.36%
Median
5.02%
Q1
-11.20%
Min
-45.00%
Largest peers
T
16.94%
CHT
16.24%
VZ
12.46%
TMUS
11.65%
AMX
9.23%
VOD
-0.98%
SPCX
-45.00%
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Where Verizon Communications (VZ) stands on net margin within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Verizon Communications (VZ) turns 25.19% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

VZ

Telecommunication Services industry group

25.19%

Group distribution
Max
35.60%
VZ
25.19%
Q3
21.32%
Median
12.69%
Q1
4.41%
Min
-8.71%
Largest peers
VZ
25.19%
TMUS
24.01%
T
22.72%
CHT
21.84%
AMX
21.33%
VOD
7.78%
SPCX
-41.63%
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Where Verizon Communications (VZ) stands on operating margin within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
ROE (TTM)17.20%7.35%
ROA (TTM)5.08%2.94%
Net Margin (TTM)12.46%5.02%
Operating Margin (TTM)25.19%12.69%
Gross Margin (TTM)58.91%56.37%

Growth

Revenue Growth

Verizon Communications (VZ) grew revenue 2.52%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Verizon Communications (VZ): Revenue Growth across different time periods, set against Telecommunication Services industry-group medians.

EPS Growth

Verizon Communications (VZ) grew earnings per share -1.93%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Verizon Communications (VZ): EPS Growth across different time periods, set against Telecommunication Services industry-group medians.

Growth Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
Revenue Growth (YoY)2.52%4.62%
Revenue Growth (3Y CAGR)0.33%3.53%
EPS Growth (YoY)-1.93%-0.66%
EPS Growth (3Y CAGR)-7.08%16.88%

Financial Strength

Current Ratio (MRQ)

Verizon Communications (VZ) has current ratio of 0.64, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

VZ

Telecommunication Services industry group

0.64

Group distribution
Max
2.39
Q3
1.66
Median
1.11
Q1
0.92
VZ
0.64
Min
0.25
Largest peers
CHT
1.64
SPCX
1.22
VOD
1.14
TMUS
1.09
T
0.92
AMX
0.72
VZ
0.64
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Where Verizon Communications (VZ) stands on current ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Verizon Communications (VZ) has debt-to-equity ratio of 1.92, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

VZ

Telecommunication Services industry group

1.92

Group distribution
Max
3.82
Q3
2.05
VZ
1.92
Median
1.00
Q1
0.66
Min
0.00
Largest peers
TMUS
2.19
VZ
1.92
AMX
1.71
T
1.27
VOD
1.00
SPCX
0.74
CHT
0.10
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Where Verizon Communications (VZ) stands on debt-to-equity ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
Current Ratio (MRQ)0.641.11
Debt / Equity (MRQ)1.921.00
Net Debt / EBITDA3.773.80

Dividends

Dividend Yield (TTM)

Verizon Communications (VZ) has dividend yield of 6.36%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

VZ

Telecommunication Services industry group

6.36%

Group distribution
Max
12.21%
VZ
6.36%
Q3
5.29%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CHT
12.21%
VZ
6.36%
T
5.06%
AMX
2.07%
TMUS
2.01%
VOD
0.30%
SPCX
0.00%
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Where Verizon Communications (VZ) stands on dividend yield within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Verizon Communications (VZ) has payout ratio of 67.44%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

VZ

Telecommunication Services industry group

67.44%

Group distribution
Max
128.57%
VZ
67.44%
Q3
60.13%
Median
7.71%
Q1
0.00%
Min
0.00%
Largest peers
VOD
101.44%
CHT
96.91%
VZ
67.44%
TMUS
40.38%
T
37.37%
AMX
36.06%
SPCX
0.00%
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Where Verizon Communications (VZ) stands on payout ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
Dividend Yield (TTM)6.36%0.00%
Dividend Payout Ratio (TTM)67.44%7.71%

Valuation

P/E Ratio (TTM)

Verizon Communications (VZ) trades at P/E ratio of 10.60, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

VZ

Telecommunication Services industry group

10.60

Group distribution
Max
36.00
Q3
20.99
Median
15.81
VZ
10.60
Q1
8.69
Min
2.46
Largest peers
CHT
27.23
TMUS
20.78
AMX
15.81
VZ
10.60
T
7.40
SPCX
--
VOD
--
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Where Verizon Communications (VZ) stands on P/E ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Verizon Communications (VZ) trades at 1.31 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

VZ

Telecommunication Services industry group

1.31

Group distribution
Max
5.15
Q3
2.35
VZ
1.31
Median
0.84
Q1
0.39
Min
0.00
Largest peers
SPCX
84.32
TMUS
2.28
VZ
1.31
T
1.22
VOD
0.87
CHT
0.14
AMX
0.08
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Where Verizon Communications (VZ) stands on P/S ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Verizon Communications (VZ) trades at 1.77 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

VZ

Telecommunication Services industry group

1.77

Group distribution
Max
8.41
Q3
4.02
VZ
1.77
Median
1.60
Q1
0.71
Min
0.01
Largest peers
SPCX
20.74
CHT
10.89
AMX
3.72
TMUS
3.71
VZ
1.77
T
1.41
VOD
1.21
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Where Verizon Communications (VZ) stands on P/B ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Verizon Communications (VZ) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: VZIndustry group median
P/E Ratio (TTM)10.6015.81
P/S Ratio (TTM)1.310.84
P/B Ratio (MRQ)1.771.60
Free Cash Flow Yield (TTM)10.73%10.73%