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Verizon Communications Inc
VZ : NYSE : Technology
$45.23 | %
Today's Range: 44.83 - 45.39
Avg. Daily Volume: 13,835,300
11/27/15 - 1:02 PM ET

Financial Analysis

VERIZON COMMUNICATIONS INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. VERIZON COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 20.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)33158.031586.0
EBITDA ($mil)11886.011057.0
EBIT ($mil)7877.06890.0
Net Income ($mil)4038.03695.0

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)4181.07853.0
Total Assets ($mil)242073.0226293.0
Total Debt ($mil)112324.0109230.0
Equity ($mil)13138.016577.0

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin59.8761.21
EBITDA Margin35.8435.0
Operating Margin23.7621.81
Sales Turnover0.540.55
Return on Assets4.237.47
Return on Equity78.07102.08
Debt Q3 FY15 Q3 FY14
Current Ratio0.630.92
Interest Expense1386.01331.0
Interest Coverage5.685.18

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)4068.874149.72
Div / share0.550.53
Book value / share3.233.99
Institutional Own % n/a n/a
Avg Daily Volume1.3913517E71.5456344E7


BUY. This stock's P/E ratio indicates a discount compared to an average of 27.51 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 22.01. For additional comparison, its price-to-book ratio of 13.91 indicates a significant premium versus the S&P 500 average of 2.78 and a significant premium versus the industry average of 9.37. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, VERIZON COMMUNICATIONS INC seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VZ 17.90 Peers 27.51   VZ 5.12 Peers 7.35

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

VZ is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

VZ is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
VZ 11.27 Peers 20.13   VZ 0.28 Peers 0.43

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

VZ is trading at a significant discount to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

VZ trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VZ 13.91 Peers 9.37   VZ -47.82 Peers -40.50

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

VZ is trading at a significant premium to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, VZ is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VZ 1.40 Peers 1.60   VZ 4.48 Peers 0.83

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

VZ is trading at a discount to its industry on this measurement.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

VZ has a sales growth rate that significantly exceeds its peers.



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