Verizon Communications, 5.9% 15 Feb 2054 Fundamental Analysis
Verizon Communications, 5.9% 15 Feb 2054 Fundamental Analysis
Verizon Communications, 5.9% 15 Feb 2054 (VZA) shows moderate financial fundamentals with a PE ratio of 5.08, profit margin of 15.20%, and ROE of 20.15%. The company generates $312.5B in annual revenue with weak year-over-year growth of 0.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VZA's fundamental strength across five key dimensions:
Efficiency Score
WeakVZA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVZA trades at attractive valuation levels.
Growth Score
ModerateVZA shows steady but slowing expansion.
Financial Health Score
WeakVZA carries high financial risk with limited liquidity.
Profitability Score
ExcellentVZA achieves industry-leading margins.
Key Financial Metrics
Is VZA Expensive or Cheap?
P/E Ratio
VZA trades at 5.08 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VZA's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Verizon Communications, 5.9% 15 Feb 2054 at 1.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.51 times EBITDA. This is generally considered low.
How Well Does VZA Make Money?
Net Profit Margin
For every $100 in sales, Verizon Communications, 5.9% 15 Feb 2054 keeps $15.20 as profit after all expenses.
Operating Margin
Core operations generate 21.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.15 in profit for every $100 of shareholder equity.
ROA
Verizon Communications, 5.9% 15 Feb 2054 generates $5.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Verizon Communications, 5.9% 15 Feb 2054 generates strong operating cash flow of $83.85B, reflecting robust business health.
Free Cash Flow
Verizon Communications, 5.9% 15 Feb 2054 generates strong free cash flow of $83.81B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.88 in free cash annually.
FCF Yield
VZA converts 15.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How VZA Stacks Against Its Sector Peers
| Metric | VZA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.08 | 24.20 | Better (Cheaper) |
| ROE | 20.15% | 959.00% | Weak |
| Net Margin | 15.20% | -68674.00% (disorted) | Strong |
| Debt/Equity | 1.87 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 0.64 | 1.71 | Weak Liquidity |
| ROA | 5.06% | -2558.00% (disorted) | Weak |
VZA outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Verizon Communications, 5.9% 15 Feb 2054's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.28%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-10.85%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
1.30%
Industry Style: Growth, Technology, Streaming
Growing