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1. Company Snapshot

1.a. Company Description

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches.It also provides residential fixed connectivity solutions, such as internet, video, and voice services; and sells network access to mobile virtual network operators.


As of December 31, 2021, it had approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections.The company's Business segment provides network connectivity products, including private networking, private cloud connectivity, virtual and software defined networking, and internet access services; and internet protocol-based voice and video services, unified communications and collaboration tools, and customer contact center solutions.This segment also offers a suite of management and data security services; domestic and global voice and data solutions, such as voice calling, messaging services, conferencing, contact center solutions, and private line and data access networks; customer premises equipment; installation, maintenance, and site services; and Internet of Things products and services.


As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections.The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc.in June 2000.


Verizon Communications Inc.was incorporated in 1983 and is headquartered in New York, New York.

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1.b. Last Insights on VZ

Verizon's recent performance has been impacted by concerns over its business segment growth, with a decline in subscribers and high churn rates raising questions about its 2025 growth momentum. The company's leadership transition, with Dan Schulman taking over as CEO, may also be a factor. Additionally, investors have expressed concerns over Verizon's ability to grow its market share, with some viewing the company's efforts as insufficient. The company's high debt and pension liabilities are manageable, but transition risks like 5G monetization and wireline declines are present.

1.c. Company Highlights

2. Verizon's Q3 2025 Earnings: A Strong Start to Transformation

Verizon reported a solid third quarter, with consolidated revenue reaching $33.8 billion, up 1.5% from the prior year period. Wireless service revenue grew 2.1% driven by ARPU growth from targeted pricing actions and further adoption of fixed wireless access and add-on services. The company's EPS came in at $1.21, beating estimates of $1.19. The revenue growth was in line with analyst estimates for next year's revenue growth of 1.9%, indicating a stable outlook.

Publication Date: Oct -30

📋 Highlights
  • Revenue Growth:: Consolidated revenue reached $33.8 billion, a 1.5% increase from the prior year Q3.
  • Postpaid Phone Additions:: Postpaid phone gross adds rose 8.4% YoY, but net losses of 7,000 occurred due to 0.91% churn.
  • Frontier Acquisition Synergy:: The pending Frontier acquisition will enable 29 million fiber passings, creating significant cross-sell opportunities.
  • Cost Transformation:: Aggressive cost-cutting plans aim to simplify operations, reduce expenses, and reinvest savings into growth areas.
  • AI Integration:: AI will be leveraged to personalize customer offers, reduce churn, and optimize marketing strategies for targeted growth.

Segment Performance

In Consumer Mobility, Verizon delivered strong postpaid phone gross adds, up 8.4% from the prior year. However, gross add growth was offset by churn of 0.91%, resulting in postpaid phone net losses of 7,000 in the quarter. The company continues to see healthy retention benefits from its converged customers, and it sees significant opportunities to increase convergence in the Frontier footprint after the transaction is closed.

Transformation Strategy

Verizon's new CEO, Dan Schulman, outlined his vision for the company's future, focusing on shifting from a technology-centric to a customer-centric company, driving sustainable revenue growth, and accelerating bottom-line adjusted EPS growth. The company plans to invest significantly across all elements of its marketing mix and customer experience to drive mobility and broadband growth, while aggressively reducing its entire cost base.

Valuation and Outlook

Verizon's current valuation metrics indicate a relatively stable outlook. The company's P/E Ratio stands at 8.52, P/B Ratio at 1.6, and EV/EBITDA at 6.05. The Dividend Yield is 6.77%, and the Free Cash Flow Yield is 11.56%. With a Net Debt / EBITDA ratio of 2.73, Verizon's leverage is manageable, giving it the ability to invest in growth areas. As the company continues to transform and focus on customer satisfaction, its financial performance is expected to improve, potentially driving shareholder value.

Growth Opportunities

Verizon is well-positioned to capitalize on growth opportunities, particularly in convergence, which offers meaningful revenue synergies. The company's pending acquisition of Frontier will serve approximately 29 million fiber passings, creating a massive cross-sell opportunity. With a strong cash flow generation, Verizon is confident in its ability to deliver on its promises and drive growth through retention by creating segmented and targeted value propositions.

3. NewsRoom

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Verizon Communications (VZ) Laps the Stock Market: Here's Why

Dec -04

Source:

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Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

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Verizon declares quarterly dividend on December 4

Dec -04

Source: globenewswire.com

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3 Reasons Verizon Stock Will Likely Continue to Underperform the Market

Dec -04

Source: fool.com

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Verizon: Steady Growth, Reliable Dividends, And A Defensive Moat

Dec -04

Source: seekingalpha.com

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Hyster-Yale (NYSE:HY) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Purchases Shares of Genprex (NASDAQ:GNPX)

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Harley-Davidson, Inc. (NYSE:HOG)

Dec -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.12%)

6. Segments

Consumer

Expected Growth: 3.8%

Verizon's consumer segment growth is driven by the adoption of 5G technology, increasing demand for high-speed internet and bundled offerings, contributing to a forecasted CAGR of 3.8%.

Business

Expected Growth: 5.2%

Growing demand for cloud, cybersecurity, and IoT solutions drives business segment growth, driven by increasing digital transformation among government and enterprise customers.

Corporate and Other

Expected Growth: 4.3%

Verizon's corporate and other segment growth is driven by increasing demand for 5G network infrastructure and managed services, as well as cost savings initiatives, which will contribute to a steady growth rate.

Eliminations

Expected Growth: 3.6%

Verizon’s Eliminations segment growth is driven by intersegment eliminations, adjustments, and synergies from its wireless and wireline businesses, as well as cost savings initiatives.

7. Detailed Products

Wireless Services

Verizon's wireless services provide customers with access to a 4G LTE network, enabling them to make calls, send texts, and access the internet on their mobile devices.

Fios Internet

Verizon's Fios Internet provides high-speed internet connectivity to homes and businesses, enabling fast and reliable online access.

Fios TV

Verizon's Fios TV offers a range of TV channels, on-demand content, and streaming services, providing customers with a comprehensive entertainment experience.

5G Network Services

Verizon's 5G network provides ultra-fast wireless connectivity, enabling low-latency and high-bandwidth applications.

Cybersecurity Services

Verizon's cybersecurity services provide businesses with threat detection, incident response, and security consulting services to protect against cyber threats.

IoT (Internet of Things) Services

Verizon's IoT services enable businesses to connect and manage devices, providing insights and automation capabilities.

Cloud and IT Services

Verizon's cloud and IT services provide businesses with infrastructure, platform, and software as a service, enabling digital transformation.

Network Services

Verizon's network services provide businesses with secure, reliable, and high-performance network connectivity.

8. Verizon Communications Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Verizon Communications Inc. faces moderate threat from substitutes due to the presence of alternative communication services such as Skype, WhatsApp, and Google Voice.

Bargaining Power Of Customers

Verizon Communications Inc. has a large customer base, but individual customers have limited bargaining power due to the company's strong brand and extensive network coverage.

Bargaining Power Of Suppliers

Verizon Communications Inc. has a diverse supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Verizon Communications Inc.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with Verizon Communications Inc. facing intense rivalry from other major players such as AT&T, T-Mobile, and Sprint.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.43%
Debt Cost 5.90%
Equity Weight 34.57%
Equity Cost 5.96%
WACC 5.92%
Leverage 189.27%

11. Quality Control: Verizon Communications Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.1

Growth: 2.6

Quality: 5.7

Yield: 9.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 7.0

Growth: 3.1

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

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Comcast

A-Score: 6.5/10

Value: 8.4

Growth: 5.2

Quality: 8.0

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

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Alphabet

A-Score: 5.9/10

Value: 1.8

Growth: 8.3

Quality: 8.4

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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T-Mobile US

A-Score: 5.7/10

Value: 4.2

Growth: 7.1

Quality: 5.6

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 7.6

Growth: 7.8

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.69$

Current Price

41.69$

Potential

-0.00%

Expected Cash-Flows