VERIZON COMMUNICATIONS INC's gross profit margin for the first quarter of its fiscal year 2015 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 0.61 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 26.52% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||31984.0||30818.0|
|Net Income ($mil)||4219.0||3947.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||4933.0||3544.0|
|Total Assets ($mil)||235790.0||221562.0|
|Total Debt ($mil)||113388.0||109769.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||62.18||63.69|
|Return on Assets||4.19||6.08|
|Return on Equity||105.97||106.14|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||4078.49||4141.15|
|Div / share||0.55||0.53|
|Book value / share||2.29||3.07|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.4792865E7||1.8677354E7|
BUY. VERIZON COMMUNICATIONS INC's P/E ratio indicates a discount compared to an average of 23.84 for the Diversified Telecommunication Services industry and a value on par with the S&P 500 average of 20.83. For additional comparison, its price-to-book ratio of 21.79 indicates a significant premium versus the S&P 500 average of 2.88 and a significant premium versus the industry average of 9.63. 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.
|VZ 20.97||Peers 23.84||VZ 6.13||Peers 6.29|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
VZ is trading at a discount to its peers.
Average. 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 valuation on par to its peers.
|VZ 12.57||Peers 15.68||VZ 0.36||Peers 0.76|
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.
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.
|VZ 21.79||Peers 9.63||VZ -46.76||Peers -11.48|
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.
|VZ 1.59||Peers 1.79||VZ 5.16||Peers -1.66|
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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