Verizon (VZ) AI Stock Analysis

• Market Cap: $182.56B
• Dividend Yield: 6.16%
• Average Volume (3M): 15.03M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.29
• Revenue Growth: 0.93%
• EPS Growth: 56.97%
• Country: US
• Employees: 99,400
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 1.19
• Shares Outstanding: 4,216,255,000
• 10 Day Avg. Volume: 12,605,678
• 30 Day Avg. Volume: 15,027,835
• PEG Ratio: 6.14
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.11
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: $47.64
• Price Target Upside: 8.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: $50.00 ▲(14.16%Upside)

Verizon's overall score reflects strong financial health and attractive valuation, supported by stable technicals. The high dividend yield and reasonable P/E ratio make it an appealing investment, though modest technical momentum tempers the outlook.

Positive Factors

5G Expansion

VZ is closing its gap with T-Mobile for 5G coverage in the US using C-band spectrum, significantly increasing its capacity.

Consumer Growth

Verizon management discussed double-digit consumer gross add growth continuing into May.

Investment Strategy

Analyst reiterates a Buy rating for Verizon, highlighting its diversified communications services portfolio and strong balance sheet as key investment attractions.

Negative Factors

Acquisitions Impact

The acquisition of FYBR is expected to be dilutive, increase leverage, and not materially change Verizon's competitive positioning.

Competition

Aggressive competition from players like AT&T and T-Mobile could impact market share and pricing power.

Revenue Challenges

Declining revenue growth in the Business segment is another key risk for Verizon.

Verizon Business Overview & Revenue Model

Company Description

Verizon Communications Inc. is a leading telecommunications company in the United States, providing a wide range of communications services. Founded in 1983 and headquartered in New York City, Verizon operates primarily in two segments: Consumer and Business. The company offers wireless services, broadband and fiber optic internet, television services, and a host of digital solutions to both individual consumers and business clients. Known for its extensive and reliable network coverage, Verizon is a major player in both the wireless and wireline communications markets.

How the Company Makes Money

Verizon makes money through a diverse range of revenue streams primarily focused on its telecommunications services. The company's largest revenue source is its wireless segment, which includes postpaid and prepaid plans, device sales, and equipment rentals. Customers pay for service plans that provide voice, text, and data services, often bundled with device payment plans. Additionally, Verizon generates revenue from its wireline services, offering broadband internet, video, and voice services primarily through its Fios brand. The company also earns from business solutions, which include network services, cybersecurity, cloud services, and Internet of Things (IoT) offerings. Strategic partnerships and the deployment of 5G technology further enhance its revenue potential, as Verizon collaborates with various industries to expand its network capabilities and service offerings.

Verizon Financial Statement Overview

Summary

Verizon's financials are strong, with robust profitability and cash flow generation. Income stability is solid, although net income growth shows slight decline. The balance sheet is stable but could improve with debt reduction.

Income Statement

Verizon's income statement demonstrates robust gross and net profit margins, supported by consistent revenue growth over recent years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 69.52%, and a net profit margin of 15.42% reflects strong profitability. Revenue growth rate from 2024 to TTM is 0.37%, indicating stability. While EBIT and EBITDA margins are solid at 21.54% and 33.09% respectively, the slight decrease in net income growth could be a concern.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 1.64, indicating manageable leverage. The return on equity (ROE) is impressive at 20.45%, suggesting efficient use of equity. However, the equity ratio is moderate at 26.83%, which could indicate room for strengthening the balance sheet further by reducing debt.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 1.80, confirming strong cash generation relative to profits. Free cash flow growth is notable at 29.22% from 2024 to TTM. The free cash flow to net income ratio of 1.17 highlights effective conversion of earnings to cash flow, though capital expenditure remains significant.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
135.29B	134.79B	133.97B	136.84B	133.61B	128.29B
	Gross Profit
81.01B	80.69B	79.09B	77.70B	77.31B	77.09B
	EBIT
29.14B	28.69B	22.88B	30.47B	32.45B	28.80B
	EBITDA
48.05B	47.52B	40.14B	48.60B	52.87B	48.11B
	Net Income Common Stockholders
17.78B	17.51B	11.61B	21.26B	22.07B	17.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.26B	4.19B	2.06B	2.60B	2.92B	22.17B
	Total Assets
380.36B	384.71B	380.25B	379.68B	366.60B	316.48B
	Total Debt
167.71B	168.36B	174.94B	150.64B	150.87B	129.06B
	Net Debt
165.46B	164.16B	172.88B	148.03B	147.95B	106.89B
	Total Liabilities
278.33B	284.14B	286.46B	287.22B	283.40B	247.21B
	Stockholders Equity
100.72B	99.24B	92.43B	91.14B	81.79B	67.84B
Cash Flow		Free Cash Flow
20.18B	18.92B	18.71B	10.40B	19.25B	21.45B
	Operating Cash Flow
37.61B	36.91B	37.48B	37.14B	39.54B	41.77B
	Investing Cash Flow
-17.18B	-18.67B	-23.43B	-28.66B	-67.15B	-23.51B
	Financing Cash Flow
-21.57B	-17.10B	-14.66B	-8.53B	8.28B	1.32B

Verizon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VZ, the sentiment is Positive. The current price of 43.8 is above the 20-day moving average (MA) of 43.50, above the 50-day MA of 43.46, and above the 200-day MA of 41.44, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 45.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VZ.

Verizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	76 Outperform	$182.56B	10.29	18.23%	6.16%	0.93%	56.97%
CHTR	76 Outperform	$109.53B	10.99	36.94%	―	0.93%	16.06%
TMUS	76 Outperform	$278.07B	23.87	19.35%	1.34%	5.31%	38.46%
CMCSA	75 Outperform	$127.77B	8.40	18.57%	3.63%	1.33%	7.69%
AMX	71 Outperform	$51.89B	31.06	8.54%	2.98%	0.19%	-49.68%
T	69 Neutral	$199.75B	17.05	11.38%	3.95%	0.50%	-12.66%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%

Verizon Corporate Events

Verizon Shareholders Meeting Approves Board and Compensation

At the 2025 Annual Meeting of Shareholders held on May 22, 2025, Verizon Communications Inc. announced the election of several board members and the approval of executive compensation. The meeting also ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025. However, shareholder proposals on climate lobbying alignment, lead-sheathed cable reporting, and discrimination in advertising services were defeated, reflecting the company’s current strategic priorities and stakeholder interests.

The most recent analyst rating on (VZ) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Verizon stock, see the VZ Stock Forecast page.

Verizon Increases CEO Incentive Amid Revenue Reclassification

On March 18, 2025, Verizon’s Board of Directors approved an increase in the annual target long-term incentive for CEO Hans Vestberg from $18 million to $25 million, reflecting market competitiveness and his experience. Additionally, Verizon reclassified certain revenues and adjusted its metrics for wireless retail postpaid phone net additions, impacting financial reporting and investor information.

Verizon Projects 2025 Growth Despite Q1 Challenges

At an investor event, Verizon announced that its Consumer Group’s postpaid phone net additions for Q1 2025 are expected to be impacted by increased churn due to recent pricing actions and flat to slightly decreased gross additions compared to the previous year. Despite these challenges, Verizon remains confident in its full-year financial guidance and anticipates generating more Consumer postpaid phone net additions in 2025 than in 2024.