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Relative to Communication Services Sector Median (N=134)
Metric
VZ
Benchmark
P/E Ratio
10.8x
-59%
EV/EBITDA
4.1x
-17%
Price / Book
1.9x
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
-8.2%
$42.31Spot: $46.09
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Communication Services sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.6%
Sector: 1.0%
Dividend Analysis audit
HIGH YIELD
6.38%
Trailing Yield
$6.38
Per $100 Invested
High yield — monitor payout sustainability closely.
Est. Payout Ratio
69%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, VERIZON COMMUNICATIONS INC (VZ) receives a "Buy" rating with a composite score of 54.2/100, ranked #82 out of 4446 stocks. Key factor scores: Quality 50/100, Value 77/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
VERIZON COMMUNICATIONS INC (VZ) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does VERIZON COMMUNICATIONS INC Do?
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. VERIZON COMMUNICATIONS INC (VZ) is classified as a mega-cap stock in the Communication Services sector, specifically within the Communication industry. The company is led by CEO Hans E. Vestberg and employs approximately 117,100 people, headquartered in NEW YORK, New York. With a market capitalization of $208.3B, VZ is one of the largest companies in the Communication Services sector.
As of April 2026, VERIZON COMMUNICATIONS INC receives a Buy rating with a composite score of 54.2/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.VZ ranks #82 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, VERIZON COMMUNICATIONS INC ranks #3 of 134 stocks, placing it in the top 10% of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
VZ Stock Price and 52-Week Range
VERIZON COMMUNICATIONS INC (VZ) currently trades at $46.09. The stock lost $1.69 (3.5%) in the most recent trading session. The 52-week high for VZ is $51.66, which means the stock is currently trading -10.8% from its annual peak. The 52-week low is $10.60, putting the stock 334.8% above its annual trough. Recent trading volume was 25.2M shares, indicating strong institutional interest and high liquidity.
Is VZ Overvalued or Undervalued? — Valuation Analysis
VERIZON COMMUNICATIONS INC (VZ) carries a value factor score of 77/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.81x, compared to the Communication Services sector average of 26.08x — a discount of 59%. The price-to-book ratio stands at 1.90x, versus the sector average of 1.87x. The price-to-sales ratio is 1.49x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, VZ trades at 4.14x EV/EBITDA, versus 4.98x for the sector.
Based on these multiples, VERIZON COMMUNICATIONS INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
VERIZON COMMUNICATIONS INC Profitability — ROE, Margins, and Quality Score
VERIZON COMMUNICATIONS INC (VZ) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.6%, compared to the Communication Services sector average of 1.0%, which is within a healthy range. Return on assets (ROA) comes in at 4.6% versus the sector average of -0.0%.
On a margin basis, VERIZON COMMUNICATIONS INC reports gross margins of 60.5%, compared to 56.4% for the sector. The operating margin is 22.3% (sector: 0.4%). Net profit margin stands at 13.7%, versus -0.9% for the average Communication Services stock. Revenue growth is running at 3.1% on a trailing basis, compared to 3.0% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
VZ Debt, Balance Sheet, and Financial Health
VERIZON COMMUNICATIONS INC has a debt-to-equity ratio of 282.0%, compared to the Communication Services sector average of 82.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.91x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $146.78B. Cash and equivalents stand at $7.71B.
VZ has a beta of 0.09, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for VERIZON COMMUNICATIONS INC is 93/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
VERIZON COMMUNICATIONS INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, VERIZON COMMUNICATIONS INC reported revenue of $135.14B and earnings per share (EPS) of $4.06. Net income for the quarter was $18.57B. Gross margin was 60.5%. Operating income came in at $30.18B.
In FY 2025, VERIZON COMMUNICATIONS INC reported revenue of $138.19B and earnings per share (EPS) of $4.06. Net income for the quarter was $17.61B. Revenue grew 2.5% year-over-year compared to FY 2024. Operating income came in at $29.26B.
In Q3 2025, VERIZON COMMUNICATIONS INC reported revenue of $33.82B and earnings per share (EPS) of $1.17. Net income for the quarter was $5.06B. Gross margin was 60.5%. Revenue grew 1.5% year-over-year compared to Q3 2024. Operating income came in at $8.11B.
In Q2 2025, VERIZON COMMUNICATIONS INC reported revenue of $34.50B and earnings per share (EPS) of $1.18. Net income for the quarter was $5.12B. Revenue grew 5.2% year-over-year compared to Q2 2024. Operating income came in at $8.17B.
Over the past 8 quarters, VERIZON COMMUNICATIONS INC has demonstrated a growth trajectory, with revenue expanding from $32.80B to $135.14B. Investors analyzing VZ stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
VZ Dividend Yield and Income Analysis
VERIZON COMMUNICATIONS INC (VZ) currently pays a dividend yield of 6.4%. At this yield, a $10,000 investment in VZ stock would generate approximately $$638.00 in annual dividend income. The net margin of 13.7% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
VZ Momentum and Technical Analysis Profile
VERIZON COMMUNICATIONS INC (VZ) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
VZ vs Competitors — Communication Services Sector Ranking and Peer Comparison
Comparing VZ against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full VZ vs S&P 500 (SPY) comparison to assess how VERIZON COMMUNICATIONS INC stacks up against the broader market across all factor dimensions.
VZ Next Earnings Date
No upcoming earnings date has been announced for VERIZON COMMUNICATIONS INC (VZ) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy VZ? — Investment Thesis Summary
The bull case for VERIZON COMMUNICATIONS INC rests on several quantitative strengths. The value score of 77/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 93/100) reduces downside risk.
In summary, VERIZON COMMUNICATIONS INC (VZ) earns a Buy rating with a composite score of 54.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on VZ stock.
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Institutional Research Dossier
VERIZON COMMUNICATIONS INC (VZ) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We maintain a Buy rating on Verizon Communications (VZ), driven primarily by its compelling valuation and the relative stability of its core business. While growth prospects are modest, Verizon's dominant market position, substantial free cash flow generation (despite recent fluctuations), and commitment to returning capital to shareholders through dividends make it an attractive investment, particularly in an environment favoring value and income. The key takeaway is that Verizon offers a margin of safety at its current valuation, providing downside protection while investors await a potential catalyst to unlock further upside.
However, the company faces significant challenges, including intense competition in the wireless market, substantial debt burden, and the need for continued investment in 5G infrastructure. These factors limit its financial flexibility and potentially constrain future growth. Despite these headwinds, Verizon's scale, brand recognition, and established customer base provide a solid foundation for navigating the evolving telecommunications landscape. The current valuation appears to adequately compensate investors for these risks, making the stock a worthwhile consideration for value-oriented portfolios.
Business Strategy & Overview
Verizon operates primarily in two segments: Consumer and Business. The Consumer segment focuses on providing wireless and wireline communications services to individual customers, including mobile phone plans, internet access (primarily through Fios), and video services. This segment is the primary revenue driver for the company, relying heavily on subscription-based models and equipment sales. Verizon's strategy in the Consumer segment revolves around maintaining its leading market share by offering premium services, expanding its 5G network coverage, and bundling services to increase customer retention.
The Business segment caters to enterprise clients, offering a range of network connectivity products, including private networking, cloud connectivity, and internet access. It also provides voice and video services, unified communications tools, and cybersecurity solutions. Verizon's strategy in the Business segment is centered on providing customized solutions to meet the specific needs of its enterprise clients, leveraging its network infrastructure and expertise in areas like IoT and cloud computing. This segment is crucial for diversifying Verizon's revenue streams and capitalizing on the growing demand for digital transformation among businesses.
Verizon's overall strategic positioning emphasizes its network leadership and commitment to innovation. The company has invested heavily in 5G infrastructure, aiming to provide faster speeds, lower latency, and greater capacity for its customers. This investment is intended to differentiate Verizon from its competitors and enable new applications and services, such as augmented reality, virtual reality, and autonomous vehicles. However, the rollout of 5G has been capital intensive, and the benefits have yet to fully materialize in terms of revenue growth.
The company's product pipeline includes ongoing enhancements to its wireless and wireline services, as well as the development of new solutions for enterprise clients. Verizon is also exploring opportunities in areas like edge computing and private 5G networks, which could provide new avenues for growth. The competitive landscape is intense, with Verizon facing competition from other major telecommunications companies like AT&T and T-Mobile, as well as cable companies and emerging players in the internet and cloud services markets. Maintaining a competitive edge requires continuous investment in technology, a focus on customer experience, and effective marketing strategies.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.1%
Sector: 3.0%
IN LINE
Economic Moat Analysis
Verizon possesses a Narrow economic moat, primarily derived from its established infrastructure and brand recognition. The telecommunications industry, while capital-intensive, does not inherently guarantee a wide moat due to the presence of multiple large players and the potential for technological disruption. Verizon's extensive network infrastructure, particularly its 5G network, represents a significant barrier to entry for new competitors. Building a comparable network requires substantial capital investment and regulatory approvals, providing Verizon with a cost advantage and a degree of pricing power in certain markets.
Brand recognition also contributes to Verizon's narrow moat. The Verizon brand is associated with reliability and quality, which can influence customer purchasing decisions. This brand equity allows Verizon to command a premium price for its services and retain customers in a competitive market. However, brand loyalty is not absolute, and customers are increasingly willing to switch providers for better deals or superior technology.
Switching costs in the telecommunications industry are moderate. While customers may face some inconvenience in changing providers, such as porting phone numbers or setting up new accounts, these costs are not prohibitive. The increasing prevalence of unlocked phones and the ease of comparing prices online have further reduced switching costs, making it easier for customers to switch to competitors.
Network effects are present in the telecommunications industry, but they are not as strong as in other industries, such as social media. While a larger network can provide better coverage and reliability, the benefits of network size diminish as coverage becomes more ubiquitous. Furthermore, the presence of multiple networks reduces the importance of any single network's size. Efficient scale is also a factor, as the telecommunications industry requires significant upfront investment in infrastructure, but once the infrastructure is in place, the marginal cost of serving additional customers is relatively low. This allows large players like Verizon to achieve economies of scale and compete effectively on price.
Overall, Verizon's narrow moat provides it with a competitive advantage, but it is not insurmountable. The company faces ongoing challenges from competitors, technological disruption, and changing customer preferences. Maintaining its moat requires continuous investment in technology, a focus on customer experience, and effective marketing strategies. The increasing convergence of telecommunications, media, and technology also creates new opportunities and threats for Verizon, requiring it to adapt its business model and strategy to remain competitive.
Financial Health & Profitability
Verizon's financial health presents a mixed picture. The company generates substantial revenue, with TTM revenue of $138.19 billion. Net income is also strong at $17.61 billion, resulting in a healthy net margin of 13.7%, significantly higher than the sector average of -1.1%. This profitability demonstrates Verizon's ability to effectively monetize its services and manage its costs. However, the company's free cash flow (FCF) of $4.12 billion is relatively low compared to its market capitalization and debt burden, raising concerns about its financial flexibility.
A key concern is Verizon's high level of debt. With total debt of $146.78 billion, the company's debt-to-equity ratio is a high 282.00, significantly exceeding the sector average of 80.00. This high leverage increases Verizon's financial risk and limits its ability to invest in growth opportunities or return capital to shareholders. The company's current ratio of 0.91 indicates that it may face some challenges in meeting its short-term obligations.
Analyzing the quarterly financial history reveals some trends. Revenue has been relatively stable over the past few years, with slight growth from $133.97 billion in FY2023 to $138.19 billion in FY2025. Net income has fluctuated, but remains strong. Operating margins have also been relatively consistent, ranging from 17.1% in FY2023 to 21.2% in FY2025. The significant drop in FCF from $24.31B in FY2024 to $4.12B in Q3 FY2025 is concerning and warrants further investigation. This decline could be due to increased capital expenditures, changes in working capital, or other factors.
Compared to the Communication Services sector, Verizon's profitability metrics are strong. Its ROE of 17.6% is significantly higher than the sector average of 0.9%, indicating that Verizon is effectively utilizing its equity to generate profits. Its gross margin of 60.5% and operating margin of 22.3% also exceed the sector averages of 56.8% and 0.5%, respectively. However, its high debt-to-equity ratio is a significant outlier compared to the sector average.
Overall, Verizon's financial health is characterized by strong profitability and revenue stability, but also by high debt levels and fluctuating free cash flow. The company's ability to manage its debt burden and generate consistent free cash flow will be crucial for its long-term success. Investors should closely monitor these metrics to assess Verizon's financial risk and growth potential.
Valuation Assessment
Verizon's valuation appears attractive based on several key metrics. The company's P/E ratio of 12.3x is significantly lower than the Communication Services sector average of 26.0x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 1.1x is substantially lower than the sector average of 5.0x, further indicating undervaluation. These multiples suggest that investors are not fully appreciating Verizon's earnings power and asset base.
However, it's important to consider Verizon's growth prospects when assessing its valuation. The company's revenue growth of 3.1% is in line with the sector average, indicating that it is not a high-growth company. This modest growth rate may justify a lower valuation multiple compared to companies with higher growth potential. Furthermore, Verizon's high debt burden and fluctuating free cash flow may also contribute to its lower valuation.
Despite these factors, Verizon's dividend yield is a significant component of its investment appeal. While specific dividend yield data is not provided, Verizon is known for its consistent dividend payments, making it attractive to income-seeking investors. The company's commitment to returning capital to shareholders through dividends provides a floor for its stock price and enhances its total return potential.
Comparing Verizon's valuation to its historical averages is challenging without historical data. However, the current multiples suggest that the stock is trading at a discount to its intrinsic value. The market may be overly focused on Verizon's challenges, such as its debt burden and competitive pressures, and underappreciating its strengths, such as its leading market position and stable revenue base.
Overall, Verizon's valuation appears compelling, particularly for value-oriented investors. The stock is trading at a discount to its earnings and asset base, and its dividend yield provides a steady stream of income. While the company faces challenges, its strengths and attractive valuation make it a worthwhile investment consideration. A catalyst, such as improved free cash flow generation or a successful deleveraging strategy, could unlock further upside potential.
Risk & Uncertainty
Verizon faces several specific risks that could negatively impact its business and financial performance. Intense competition in the wireless market is a significant risk. Competitors like AT&T and T-Mobile are aggressively vying for market share, leading to price wars and increased marketing expenses. This competition could erode Verizon's margins and limit its ability to grow revenue. The ongoing consolidation in the telecommunications industry also creates larger and more formidable competitors.
Verizon's substantial debt burden is another major risk. The company's high debt levels increase its financial risk and limit its flexibility to invest in growth opportunities or return capital to shareholders. Rising interest rates could further increase Verizon's debt servicing costs, putting additional pressure on its cash flow. The company's ability to deleverage its balance sheet will be crucial for mitigating this risk.
Technological disruption is also a risk for Verizon. The telecommunications industry is constantly evolving, with new technologies and business models emerging. Verizon must adapt to these changes to remain competitive. The rise of over-the-top (OTT) video services, such as Netflix and Disney+, has disrupted the traditional cable TV business, putting pressure on Verizon's Fios video service. The company must find new ways to compete in the evolving media landscape.
Regulatory risks are also present. The telecommunications industry is heavily regulated, and changes in regulations could negatively impact Verizon's business. For example, changes in net neutrality rules or spectrum allocation policies could affect Verizon's ability to provide its services and compete effectively. The company must navigate the complex regulatory environment to minimize these risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWVerizon's attractive valuation, particularly its low P/E and EV/EBITDA multiples relative to the sector, provides a margin of safety and significant upside potential as the market recognizes its intrinsic value.
BULL VIEWThe company's consistent dividend payments offer a reliable income stream for investors, making it an attractive investment in a low-interest-rate environment, and its commitment to maintaining the dividend signals financial stability.
BULL VIEWVerizon's leading market position and extensive 5G network infrastructure provide a competitive advantage, enabling it to capitalize on the growing demand for high-speed data and new applications, driving future revenue growth.
The Bear Case
BEAR VIEWVerizon's high debt burden significantly limits its financial flexibility and exposes it to increased risk in a rising interest rate environment, potentially hindering its ability to invest in growth initiatives.
BEAR VIEWIntense competition in the wireless market is eroding Verizon's margins and market share, making it difficult to achieve sustainable revenue growth and maintain its profitability.
BEAR VIEWThe decline in free cash flow generation raises concerns about Verizon's ability to fund its dividend payments and deleverage its balance sheet, potentially leading to a dividend cut or further financial strain.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score VZ and 4,400+ other equities.
VERIZON COMMUNICATIONS INC exhibits a 24% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.6%
Sector: -0.0%
Gross Margin
Pricing power and cost efficiency
60.5%
Sector: 56.4%
Operating Margin
Core business profitability
22.3%
Sector: 0.4%
Net Margin
Bottom-line profitability
13.7%
Sector: -0.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $638 annually in dividends at the current trailing rate.
