Verizon Communications Inc.Find Ratings Reports
VERIZON COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2019 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. VERIZON COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 8.76% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY19||Q2 FY18|
|Net Sales ($mil)||32071.0||32203.0|
|Net Income ($mil)||3944.0||4120.0|
|Balance Sheet||Q2 FY19||Q2 FY18|
|Cash & Equiv. ($mil)||3004.0||2601.0|
|Total Assets ($mil)||283108.0||263303.0|
|Total Debt ($mil)||134779.0||114640.0|
|Profitability||Q2 FY19||Q2 FY18|
|Gross Profit Margin||60.33||58.61|
|Return on Assets||5.59||11.75|
|Return on Equity||27.99||59.49|
|Debt||Q2 FY19||Q2 FY18|
|Share Data||Q2 FY19||Q2 FY18|
|Shares outstanding (mil)||4135.77||4131.94|
|Div / share||0.6||0.59|
|Book value / share||13.68||12.59|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.1793218E7||1.3380114E7|
BUY. The current P/E ratio indicates a significant discount compared to an average of 91.01 for the Telecommunications subsector and a discount compared to the S&P 500 average of 21.72. To use another comparison, its price-to-book ratio of 4.37 indicates a premium versus the S&P 500 average of 3.24 and a significant premium versus the subsector average of 2.61. The current price-to-sales ratio is below the S&P 500 average, but above the subsector average.
|VZ 15.62||Peers 18.09||VZ 7.33||Peers 7.54|
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 12.20||Peers 12.50||VZ 0.56||Peers 0.64|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
VZ is trading at a valuation on par with 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 discount to its peers.
|VZ 4.37||Peers 2.61||VZ -49.34||Peers -34.90|
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 1.89||Peers 1.88||VZ 1.11||Peers 6.14|
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 subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
VZ significantly trails its peers on the basis of sales growth.