NEW YORK (TheStreet) -- Verizon (VZ) announced that it has invested more than $711 million in infrastructure improvements in 2013 in the state of Virginia alone. The investments are set to benefit both residential and business customers across the state, it said.
Verizon says that it has invested over $3.7 billion in Virginia's telecom infrastructure over the past three years, including adding nearly 20,000 miles of fiber optic wiring in the state.
The telecom giant hopes that the state can be one of the hubs for its burgeoning Verizon FiOs TV and Internet services. While not a major challenger to pay-TV industry leaders Comcast (CMCSA), Time Warner Cable (TWC) and Dish Network (DISH), Verizon hopes the budding infrastructure will make it competitive in the future.
TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VZ's revenue growth has slightly outpaced the industry average of 2.2%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, VERIZON COMMUNICATIONS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for VERIZON COMMUNICATIONS INC is rather high; currently it is at 61.49%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.31% is above that of the industry average.
- Net operating cash flow has significantly increased by 55.03% to $10,431.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.27%.
- VERIZON COMMUNICATIONS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, VERIZON COMMUNICATIONS INC increased its bottom line by earning $4.00 versus $0.31 in the prior year. For the next year, the market is expecting a contraction of 12.5% in earnings ($3.50 versus $4.00).
- You can view the full analysis from the report here: VZ Ratings Report