VERIZON COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. VERIZON COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 56.25% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||31483.0||29786.0|
|Net Income ($mil)||4214.0||2246.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||6424.0||2406.0|
|Total Assets ($mil)||224427.0||223346.0|
|Total Debt ($mil)||109979.0||49752.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||61.61||62.96|
|Return on Assets||6.88||0.69|
|Return on Equity||103.75||4.58|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||4145.23||2862.0|
|Div / share||0.53||0.52|
|Book value / share||3.59||11.9|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.3226749E7||1.892066E7|
BUY. This stock's P/E ratio indicates a discount compared to an average of 15.56 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 19.94. For additional comparison, its price-to-book ratio of 13.82 indicates a significant premium versus the S&P 500 average of 2.76 and a significant premium versus the industry average of 4.81. The current price-to-sales ratio is below the S&P 500 average, but above the industry average.
|VZ 10.57||Peers 15.56||VZ 4.46||Peers 5.02|
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 discount to its peers.
|VZ 12.84||Peers 17.68||VZ NM||Peers 1.65|
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 discount to its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|VZ 13.82||Peers 4.81||VZ 770.37||Peers 247.17|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
VZ is expected to have an earnings growth rate that significantly exceeds its peers.
|VZ 1.67||Peers 1.57||VZ 4.55||Peers 1.71|
Average. 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 valuation on par with 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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