Verizon Communications IncFind Ratings Reports
VERIZON COMMUNICATIONS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. VERIZON COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.70 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 greatly increased by 55.73% 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 FY16||Q3 FY15|
|Net Sales ($mil)||30937.0||33158.0|
|Net Income ($mil)||3620.0||4038.0|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||6441.0||4181.0|
|Total Assets ($mil)||239498.0||242073.0|
|Total Debt ($mil)||106591.0||112324.0|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||60.47||59.87|
|Return on Assets||5.85||4.23|
|Return on Equity||68.53||78.07|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||4077.0||4068.87|
|Div / share||0.57||0.55|
|Book value / share||5.02||3.23|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.2377825E7||1.3100268E7|
BUY. This stock's P/E ratio indicates a discount compared to an average of 17.57 for the Diversified Telecommunication Services industry and a significant discount compared to the S&P 500 average of 24.64. For additional comparison, its price-to-book ratio of 9.79 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 3.69. 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 14.28||Peers 17.57||VZ 7.13||Peers 6.55|
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 12.16||Peers 20.23||VZ NM||Peers 1.01|
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.
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 9.79||Peers 3.69||VZ 37.05||Peers 51.48|
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 1.57||Peers 1.73||VZ -2.05||Peers 7.79|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
VZ significantly trails its peers on the basis of sales growth