Verizon (VZ) AI Stock Analysis

• Market Cap: $178.39B
• Dividend Yield: 6.4%
• Average Volume (3M): 15.67M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.28
• Revenue Growth: 0.93%
• EPS Growth: 56.97%
• Country: US
• Employees: 99,400
• Sector: Communication Services
• Sector Strength: 93
• Industry: Telecommunications Services
• EPS (TTM): 1.19
• Shares Outstanding: 4,216,255,000
• 10 Day Avg. Volume: 19,830,428
• 30 Day Avg. Volume: 15,665,166
• PEG Ratio: -1.59
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.92
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $47.87
• Price Target Upside: 13.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 70 Outperform
• Price Target: $47.00 ▲(11.08%Upside)

Verizon's strong financial health and reasonable valuation are significant positives, supported by robust profit margins and cash flow. However, bearish technical indicators and operational challenges like elevated churn weigh on the overall score. Despite these challenges, the company's strategic initiatives and high dividend yield offer potential upside.

Positive Factors

Financial Performance

Verizon is expected to expand financial performance in 2025 within its financial guidance-ranges.

Investment Strategy

Ongoing investments in wireless and wireline infrastructure, along with AI-driven network optimization, are expected to enhance Verizon's business performance.

Postpaid Phone Sales

Verizon's stronger gross add growth to largely offset higher churn in Consumer is encouraging for the company’s postpaid phone sales momentum.

Negative Factors

Churn Rates

Higher churn is expected to result in lower Verizon Consumer Group postpaid phone net adds compared to the previous year.

Consumer Competitive Environment

The combination of a tighter Consumer competitive environment for postpaid with an ongoing Government overhang in Business could lead VZ shares to underperform near-term.

Wireless Competition

The elevation in wireless competition is apt to have a slight toll on VZ’s financials.

Verizon Business Overview & Revenue Model

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.

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 shows strong financial health with robust profit margins and cash flow generation. While revenue growth is steady, the balance sheet indicates moderate leverage that could be improved by reducing debt. Overall, the company is well-positioned in its industry.

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
EBITDA	48.05B	47.52B	40.14B	48.60B	52.87B	48.11B
Net Income	17.78B	17.51B	11.61B	21.26B	22.07B	17.80B
Balance Sheet
Total Assets	380.36B	384.71B	380.25B	379.68B	366.60B	316.48B
Cash, Cash Equivalents and Short-Term Investments	2.26B	4.19B	2.06B	2.60B	2.92B	22.17B
Total Debt	167.71B	168.36B	174.94B	176.33B	177.93B	150.55B
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: Neutral
• Last Price: 42.31
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 42.31 is below the 20-day moving average (MA) of 42.96, below the 50-day MA of 43.19, and above the 200-day MA of 41.66, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 33.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VZ.

Verizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	81 Outperform	$131.87B	8.67	18.57%	3.74%	1.33%	7.69%
TMUS	81 Outperform	$267.11B	22.93	19.35%	1.50%	5.31%	38.46%
CHTR	71 Outperform	$110.78B	11.12	36.94%	―	0.93%	16.06%
AMX	71 Outperform	$53.47B	31.53	8.54%	2.80%	―	―
VZ	70 Outperform	$178.39B	10.05	18.23%	6.40%	0.93%	56.97%
T	69 Neutral	$202.05B	17.24	11.38%	3.95%	0.50%	-12.66%
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.95%	2.29%	-73.14%

Verizon Corporate Events

Verizon Finalizes Private Exchange Offers for Notes

On June 23, 2025, Verizon announced the final results of its private exchange offers for 10 series of notes and related tender offers. The exchange offers, which expired on June 18, 2025, involved swapping outstanding notes for newly issued 5.401% Notes due 2037. Verizon plans to issue approximately $2.2 billion in new notes, meeting the Minimum Issue Requirement. The company will not receive cash proceeds from these offers, and certain non-covered notes were rejected due to conditions not being satisfied, impacting some stakeholders.

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 Announces Results of Private Exchange Offers

On June 20, 2025, Verizon announced the expiration and preliminary results of its private exchange offers for ten series of notes, alongside the expiration of related tender offers for certain investors. The exchange offers, which expired on June 18, 2025, involved swapping outstanding notes for new 5.401% notes due in 2037. Verizon expects the minimum issue requirement to be met, but will not receive cash proceeds from these offers. The issuance of new notes is subject to certain conditions, and they will not be registered under the Securities Act, limiting their sale in the U.S.

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 Announces Pricing for Debt Exchange Offers

On June 18, 2025, Verizon Communications Inc. announced the pricing terms for its private exchange offers and related tender offers for 10 series of outstanding notes. This strategic financial maneuver aims to exchange old notes for newly issued debt securities, potentially impacting Verizon’s financial structure and market positioning. The exchange offers were set to expire on the same day, with the settlement date expected to follow on June 25, 2025, indicating a swift execution of the plan.

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 Initiates Private Exchange Offers for Notes

On June 12, 2025, Verizon announced the initiation of private exchange offers for ten series of its outstanding notes, aiming to exchange them for newly issued debt securities. This strategic financial move is designed to optimize Verizon’s debt structure, potentially impacting its financial stability and market positioning. The exchange offers are targeted at qualified institutional buyers and non-U.S. qualified offerees, with the process set to conclude on June 18, 2025, unless extended.

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 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.