Verizon Communications Inc.Find Ratings Reports
VERIZON COMMUNICATIONS INC's gross profit margin for the first quarter of its fiscal year 2018 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 0.78 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 greatly increased by 116.15% 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 FY18||Q1 FY17|
|Net Sales ($mil)||31772.0||29814.0|
|Net Income ($mil)||4545.0||3450.0|
|Balance Sheet||Q1 FY18||Q1 FY17|
|Cash & Equiv. ($mil)||1923.0||4307.0|
|Total Assets ($mil)||264516.0||246731.0|
|Total Debt ($mil)||119057.0||116546.0|
|Profitability||Q1 FY18||Q1 FY17|
|Gross Profit Margin||58.28||59.59|
|Return on Assets||11.79||4.97|
|Return on Equity||61.43||52.21|
|Debt||Q1 FY18||Q1 FY17|
|Share Data||Q1 FY18||Q1 FY17|
|Shares outstanding (mil)||4131.9||4079.37|
|Div / share||0.59||0.58|
|Book value / share||12.29||5.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.4976831E7||1.7391542E7|
BUY. This stock's P/E ratio indicates a discount compared to an average of 13.98 for the Diversified Telecommunication Services industry and a significant discount compared to the S&P 500 average of 25.32. To use another comparison, its price-to-book ratio of 3.89 indicates a premium versus the S&P 500 average of 3.29 and a significant premium versus the industry average of 2.28. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average.
|VZ 6.27||Peers 13.98||VZ 6.46||Peers 5.80|
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.
Premium. 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 premium to its peers.
|VZ 10.20||Peers 13.90||VZ NM||Peers 0.21|
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 3.89||Peers 2.28||VZ 154.33||Peers 89.72|
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 1.54||Peers 1.48||VZ 3.53||Peers 6.97|
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