VZ Verizon Communications Inc. - Fundamental Analysis
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VZ Stock | Fundamental Analysis & Investment Insights
NYSE
Communication Services
Telecom Services
Current Price
Live
$38.91
Analyst Target
$47.5
+22.1%
Upside
52W High
$47.36
52W Low
$10.6
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$164.06B
P/E
8.3
ROE
19.9%
Profit margin
14.4%
Debt/Equity
1.65
Dividend yield
7.01%
AI Analysis
AI-powered fundamental assessment
Confidence
75%
Verizon (VZ) shows a stable financial health with a Piotroski F-Score of 6/9, indicating moderate strength, though the absence of an Altman Z-Score prevents a full distress risk assessment. The stock appears undervalued based on a low P/E of 8.30 versus sector average of 21.90 and trades well below the Graham Number of $51.27 and intrinsic value of $138.36, suggesting significant margin of safety. However, weak technical trend (10/100), declining short-term price performance, and elevated leverage (Debt/Equity 1.65) temper optimism. Dividend strength is high with a 7.01% yield and sustainable 58% payout ratio, but lack of insider buying and mixed growth trends warrant caution.
Key Strengths
Attractive valuation with P/E of 8.30 well below sector average of 21.90
High and sustainable dividend yield of 7.01% with 58.05% payout ratio
Consistent earnings beat record: 3 out of last 4 quarters, with long-term pattern of positive surprises
Strong profitability metrics including ROE of 19.88% and gross margin of 59.41%
Significant discount to Graham Number ($51.27) and intrinsic value ($138.36)
Key Risks
Weak liquidity profile with Current Ratio of 0.74 and Quick Ratio of 0.57, indicating potential near-term solvency pressure
High leverage with Debt/Equity ratio of 1.65, above sector average of 1.22
Poor technical trend score of 10/100 signaling strong bearish momentum
Recent Q/Q EPS decline of -0.8% and slowing YoY revenue growth at 1.50%
Missing key financial data (EV, cash, debt, ROIC, free cash flow) limits full credit on financial health
AI Fair Value Estimate
Based on comprehensive analysis
$51.27
+31.8% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
70
Strong
85
50
70
58
88
AI Verdict
Neutral with value appeal but structural risks
Key drivers: Deep value valuation metrics, Solid dividend profile, Moderate Piotroski health score, Bearish technical trend, High leverage and weak liquidity
Confidence
78%
Value
85/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 8.30 significantly below sector average
- Price of $38.91 well below Graham Number of $51.27
- Low Forward P/E of 8.13 suggests continued value pricing
Watchpoints
- PEG Ratio unavailable limits growth-adjusted valuation
Future
50/100
Ref Growth rates
Positives
- Earnings Growth (YoY) of 50.00% is strong
- Q/Q Earnings Growth of 49.70% indicates recent acceleration
Watchpoints
- Revenue Growth (YoY) only 1.50%, indicating top-line stagnation
- Most Recent Q/Q EPS Growth is -0.8%, signaling near-term reversal
Past
70/100
Ref Historical trends
Positives
- Long history of beating earnings estimates (22 of 25 quarters positive surprises)
- Consistent profitability with stable margins over time
- 5-Year price performance shows recovery despite recent underperformance
Watchpoints
- 5Y price change of -7.4% underperforms sector and market
Health
58/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 6/9 indicates stable financial condition
- ROE of 19.88% reflects efficient use of equity
Watchpoints
- Current Ratio of 0.74 and Quick Ratio of 0.57 indicate liquidity concerns
- Debt/Equity of 1.65 is high and above sector average
- Altman Z-Score missing, limiting distress risk analysis
Dividend
88/100
Ref Yield, Payout
Positives
- Dividend Yield of 7.01% is high and attractive in current rate environment
- Payout Ratio of 58.05% is sustainable for a mature telecom
- Dividend Strength score of 70/100 reflects reliability
Watchpoints
- No 5-year average yield provided to assess trend
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$38.91
Analyst Target
$47.5
Upside/Downside
+22.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for VZ and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
VZ
Verizon Communications Inc.
Primary
|
-7.4% | +16.8% | +8.4% | -1.4% | -3.2% | -2.2% |
|
T
AT&T Inc.
Peer
|
+48.6% | +43.5% | +11.3% | -10.8% | -2.4% | -0.9% |
|
APP
AppLovin Corporation
Peer
|
+603.5% | +3491.8% | +68.6% | -21.2% | +0.4% | -8.7% |
|
DIS
The Walt Disney Company
Peer
|
-33.9% | +13.9% | +5.6% | -7.8% | +0.5% | -4.0% |
|
TMUS
T-Mobile US, Inc.
Peer
|
+48.5% | +31.2% | -12.3% | -17.3% | -6.5% | -7.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
8.3
Forward P/E
8.13
PEG Ratio
N/A
P/B Ratio
1.56
P/S Ratio
1.19
EV/Revenue
2.42
EV/EBITDA
6.63
Market Cap
$164.06B
Profitability
Profit margins and return metrics
Profit Margin
14.43%
Operating Margin
23.93%
Gross Margin
59.41%
ROE
19.88%
ROA
5.17%
Growth
Revenue and earnings growth rates
Revenue Growth
+1.5%
Earnings Growth
+50.0%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+49.7%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.65
High debt
Current Ratio
0.74
Weak
Quick Ratio
0.57
Poor
Cash/Share
$1.83
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-30
$N/A
2025-10-29
$1.21
+1.5% surprise
2025-07-21
$1.22
+2.6% surprise
2025-04-22
$1.15
+1.7% surprise
Communication Services Sector Comparison
Comparing VZ against 36 companies in the Communication Services sector
(0 bullish, 17 neutral, 19 bearish)
P/E Ratio
8.3
This Stock
vs
21.75
Sector Avg
-61.9%
(Discount)
Return on Equity (ROE)
19.88%
This Stock
vs
-7.47%
Sector Avg
-366.0%
(Below Avg)
Profit Margin
14.43%
This Stock
vs
40.35%
Sector Avg
-64.2%
(Weaker)
Debt to Equity
1.65
This Stock
vs
1.12
Sector Avg
+47.5%
(Higher)
Revenue Growth
1.5%
This Stock
vs
28.6%
Sector Avg
-94.8%
(Slower)
Current Ratio
0.74
This Stock
vs
2.2
Sector Avg
-66.5%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
VZ
Verizon Communications Inc.
|
NEUTRAL | $164.06B | 8.3 | 19.9% | 14.4% | $38.91 | |
|
T
AT&T Inc.
|
NEUTRAL | $167.96B | 7.65 | 19.1% | 17.9% | $23.49 | |
|
APP
AppLovin Corporation
|
BEARISH | $155.01B | 45.68 | 212.9% | 60.8% | $458.67 | |
|
DIS
The Walt Disney Company
|
NEUTRAL | $199.93B | 16.23 | 12.2% | 13.1% | $111.2 | |
|
TMUS
T-Mobile US, Inc.
|
NEUTRAL | $209.69B | 17.97 | 19.0% | 13.8% | $186.32 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-08-18 | VESTBERG HANS ERIK | Chief Executive Officer | Gift | 32,258 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
21 analysts
Bernstein
2026-01-16
Market Perform
Market Perform
Morgan Stanley
2025-12-10
Equal-Weight
Equal-Weight
JP Morgan
2025-10-30
Neutral
Neutral
TD Cowen
2025-10-30
Buy
Buy
Scotiabank
2025-10-30
Sector Perform
Sector Perform
RBC Capital
2025-10-30
Sector Perform
Sector Perform
Scotiabank
2025-10-06
Sector Perform
Sector Perform
B of A Securities
2025-07-22
Neutral
Neutral
RBC Capital
2025-07-22
Sector Perform
Sector Perform
Morgan Stanley
2025-07-22
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning VZ from our newsroom.
Newest → oldest
No matching news yet.