About Verizon Communications Inc.
Verizon Communications Inc. (VZ) is a Communication Services company in the Telephone Communications (No Radiotelephone) industry with a market capitalisation of $209.6B. The stock trades at 13.09x trailing earnings and yields 5.56%.
- Sector
- Communication Services
- Industry
- Telephone Communications (No Radiotelephone)
- Market cap
- $209.6B
- P/E ratio
- 13.09
- EPS (TTM)
- $4.06
- Revenue (TTM)
- $138.2B
- Profit margin
- 12.7%
- Dividend yield
- 5.56%
- Shares outstanding
- 4.2B
Financial health: Fair5/10
3 strengths, 3 concerns. Weakest points: debt to equity, current ratio, earnings growth.
- Debt to equity: 1.50 (Concern, benchmark < 0.5) — Debt of 1.50x equity is high against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Current ratio: 0.91 (Concern, benchmark > 1.5) — Short-term assets cover only 0.91x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has improved over the last 4 years.
- Return on equity: 15.6% (Strong, benchmark > 15%) — Earns 15.6% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 59.3% (Strong, benchmark > 40%) — Keeps 59.3% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 12.7% (Strong, benchmark > 10%) — Turns 12.7% of revenue into profit, comfortably past the > 10% mark.
- Revenue growth: 2.5% (Watch, benchmark > 10%) — Revenue changed 2.5% year on year, short of the > 10% mark.
- Earnings growth: -1.9% (Concern, benchmark > 10%) — Earnings changed -1.9% year on year, well short of the > 10% mark.
- Payout ratio: 65.2% (Watch, benchmark < 60%) — Pays out 65.2% of earnings as dividends — above the level usually considered sustainable.