0.62%
-0.69%
-5.73%
-1.99%
-6.22%
-25.39%
-33.18%

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.

Market Data

Last Price 39.72
Change Percentage 0.62%
Open 39.57
Previous Close 39.47
Market Cap ( Millions) 167185
Volume 2587151
Year High 45.36
Year Low 37.59
M A 50 40.88
M A 200 41.2

Financial Ratios

FCF Yield 10.61%
Dividend Yield 6.75%
ROE 10.33%
Debt / Equity 180.84%
Net Debt / EBIDTA 435.36%
Price To Book 1.74
Price Earnings Ratio 17.14
Price To FCF 9.43
Price To sales 1.25
EV / EBITDA 8.66

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Consumer

Expected Growth : 1.2 %

What the company do ?

Verizon's Consumer segment offers wireless and wireline communications services to individual consumers, including postpaid and prepaid wireless services, Fios internet, TV, and phone services.

Why we expect these perspectives ?

Verizon's 1.2% consumer segment growth is driven by increasing demand for 5G services, expansion of 5G network coverage, and growing adoption of IoT devices. Additionally, the company's focus on digital transformation, including the launch of new streaming services and online platforms, is attracting new customers and increasing average revenue per user (ARPU).

Segment nΒ°2 -> Business

Expected Growth : 0.8 %

What the company do ?

Verizon Communications Inc.'s business segment provides wireless communication services, internet, TV, and security solutions to consumers, businesses, and governments.

Why we expect these perspectives ?

Verizon's 0.8 growth driven by increasing demand for 5G services, expansion of IoT and telematics solutions, and strategic partnerships in the digital media and entertainment space, offset by intense competition in the wireless market and declining legacy wireline services.

Segment nΒ°3 -> Corporate and Other

Expected Growth : 0.5 %

What the company do ?

Corporate and Other from Verizon Communications Inc. refers to the unallocated corporate expenses, investments, and other non-operating items not attributed to its wireless, wireline, or business segments.

Why we expect these perspectives ?

Verizon's Corporate and Other segment growth of 0.5% is driven by increased demand for IoT and telematics solutions, as well as growth in its Verizon Connect business. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to the segment's modest growth.

Segment nΒ°4 -> Eliminations

Expected Growth : 0.0 %

What the company do ?

Eliminations from Verizon Communications Inc. refer to the removal of redundant or duplicate entries in financial reports to prevent double counting and ensure accurate financial representation.

Why we expect these perspectives ?

Verizon's 0.0% growth elimination is driven by intense competition in the wireless market, saturation in the US market, and declining legacy wireline services. Additionally, the company's focus on 5G network investments and debt reduction efforts have led to a temporary pause in growth.

Verizon Communications Inc. Products

Product Range What is it ?
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.

Verizon Communications Inc.'s Porter Forces

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

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.

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

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.

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.

Capital Structure

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

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
T AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying …
CMCSA Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Media, Studios, Theme Parks, and Sky segments. The Cable Communications segment offers broadband, video, voice, …
TMUS T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data …
CHTR Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based video services, including video on …
GOOG Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
39.71$
Current Price
39.72$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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