VERIZON COMMUNICATIONS INC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. VERIZON COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 68.33% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||33192.0||31065.0|
|Net Income ($mil)||-2231.0||5067.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||11153.0||54129.0|
|Total Assets ($mil)||232708.0||274098.0|
|Total Debt ($mil)||113271.0||93591.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||56.61||61.49|
|Return on Assets||4.13||4.19|
|Return on Equity||78.26||29.6|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||4155.0||2862.0|
|Div / share||0.55||0.53|
|Book value / share||2.96||13.57|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.6517285E7||1.4033231E7|
HOLD. The current P/E ratio indicates a premium compared to an average of 16.07 for the Diversified Telecommunication Services industry and a value on par with the S&P 500 average of 19.41. For additional comparison, its price-to-book ratio of 15.87 indicates a significant premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 5.61. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, VERIZON COMMUNICATIONS INC proves to trade at a premium to investment alternatives within the industry.
|VZ 18.71||Peers 16.07||VZ 6.37||Peers 6.00|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
VZ is trading at a premium 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 12.23||Peers 15.05||VZ 0.37||Peers 1.45|
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 15.87||Peers 5.61||VZ -37.25||Peers 84.46|
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 1.54||Peers 1.46||VZ 5.41||Peers 2.86|
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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