Verizon Communications Inc. (VZ) 10-Year Financial Performance & Capital Metrics

VZ • • Utilities

Communication ServicesTelecom ServicesIntegrated Telecommunications ProvidersMajor US Wireless Carriers

AboutVerizon 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.Show more

Revenue $134.79B +0.6%
EBITDA $48.5B +4.4%
Net Income $17.51B +50.7%
Free Cash Flow $18.92B +1.1%
EBITDA Margin 35.98% +3.8%
Net Margin 12.99% +49.8%
ROE 18.01% +44.4%
Interest Coverage 4.60 -11.8%
Debt/Equity 1.67 -10.2%
Net Debt/EBITDA 3.39 -9.0%
CapEx / Revenue 13.35% -27.2%
CapEx Coverage 2.05 +34.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓10 years of consecutive dividend growth
✓10 consecutive years of dividend growth
✓Strong interest coverage of 4.6x
✓Good 3Y average ROE of 18.2%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y0.59%

5Y0.44%

3Y0.29%

TTM2.42%

Profit (Net Income) CAGR

10Y6.16%

5Y-1.9%

3Y-7.42%

TTM102.5%

EPS CAGR

10Y5.54%

5Y-2.25%

3Y-7.95%

TTM101.72%

ROCE

10Y Avg11.64%

5Y Avg9.95%

3Y Avg9.21%

Latest9.46%

Peer Comparison

Major US Wireless Carriers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TMUST-Mobile US, Inc.	212.15B	189.67	19.63	3.62%	13.83%	19.63%	4.71%	1.85
TAT&T Inc.	165.18B	23.30	15.64	-0.08%	17.87%	17.28%	11.2%	1.17
TBBAT&T Inc. 5.35% GLB NTS 66	139.19B	22.67	15.21	-0.08%	17.87%	17.28%	13.3%	1.17
VZVerizon Communications Inc.	164.48B	39.01	9.40	0.61%	14.43%	18.65%	11.5%	1.67
CMCSAComcast Corporation	103.51B	28.48	6.88	1.78%	18.33%	23.15%	14.97%	1.15

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	131.62B	125.98B	126.03B	130.86B	131.87B	128.29B	133.61B	136.84B	133.97B	134.79B
Revenue Growth %	0.04%	-0.04%	0%	0.04%	0.01%	-0.03%	0.04%	0.02%	-0.02%	0.01%
Cost of Revenue	68.57B	67.35B	68.51B	72.61B	71.41B	67.92B	72.51B	76.23B	72.51B	71.99B
Gross Profit+	63.05B	58.63B	57.52B	58.26B	60.46B	60.37B	61.11B	60.6B	61.46B	62.8B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.04%	-0.07%	-0.02%	0.01%	0.04%	-0%	0.01%	-0.01%	0.01%	0.02%
Operating Expenses+	30.24B	32.72B	31B	28.25B	29.43B	30.5B	29.14B	30.14B	32.63B	32.2B
Other Operating Expenses	-	-	-	-	-	-	-	-	-	-
EBITDA+	48.82B	41.84B	43.47B	47.41B	47.71B	46.59B	48.17B	47.57B	46.45B	48.5B
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
EBITDA Growth %	0.38%	-0.14%	0.04%	0.09%	0.01%	-0.02%	0.03%	-0.01%	-0.02%	0.04%
Depreciation & Amortization+	16.02B	15.93B	16.95B	17.4B	16.68B	16.72B	16.21B	17.1B	17.62B	17.89B
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income (EBIT)+	32.81B	25.91B	26.52B	30.01B	31.03B	29.87B	31.96B	30.47B	28.83B	30.6B
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.74%	-0.21%	0.02%	0.13%	0.03%	-0.04%	0.07%	-0.05%	-0.05%	0.06%
Interest Expense+	4.92B	4.38B	4.73B	4.83B	4.73B	4.27B	3.5B	3.58B	5.53B	6.65B
Interest Coverage	6.67x	5.92x	5.60x	6.21x	6.56x	6.99x	9.14x	8.51x	5.22x	4.60x
Interest / Revenue %	-	-	-	-	-	-	-	-	-	-
Non-Operating Income	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K
Pretax Income+	28.24B	20.99B	20.59B	19.62B	22.73B	23.97B	29.42B	28.27B	16.99B	22.98B
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	9.87B	7.38B	-9.96B	3.58B	2.94B	5.62B	6.8B	6.52B	4.89B	5.03B
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	17.88B	13.13B	30.1B	15.53B	19.27B	17.8B	22.07B	21.26B	11.61B	17.51B
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.86%	-0.27%	1.29%	-0.48%	0.24%	-0.08%	0.24%	-0.04%	-0.45%	0.51%
EPS (Diluted)+	4.37	3.21	7.36	3.76	4.65	4.30	5.32	5.06	2.75	4.15
EPS Growth %	0.81%	-0.27%	1.29%	-0.49%	0.24%	-0.08%	0.24%	-0.05%	-0.46%	0.51%
EPS (Basic)	4.38	3.22	7.37	3.76	4.66	4.30	5.32	5.06	2.76	4.15
Diluted Shares Outstanding	4.09B	4.09B	4.09B	4.13B	4.14B	4.14B	4.15B	4.2B	4.21B	4.22B

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	244.18B	244.18B	257.14B	264.83B	291.73B	316.48B	366.6B	379.68B	380.25B	384.71B
Asset Growth %	0.05%	0%	0.05%	0.03%	0.1%	0.08%	0.16%	0.04%	0%	0.01%
PP&E (Net)+	83.54B	84.75B	88.57B	89.29B	114.61B	117.36B	127.58B	133.56B	133.04B	132.99B
PP&E / Total Assets %	-	-	-	-	-	-	-	-	-	-
Total Current Assets+	22.36B	26.39B	29.91B	34.64B	37.47B	54.59B	36.73B	37.86B	36.81B	40.52B
Cash & Equivalents	4.47B	2.88B	2.08B	2.75B	2.59B	22.17B	2.92B	2.6B	2.06B	4.19B
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Inventory	1.25B	1.2B	1.03B	1.34B	1.42B	1.8B	3.06B	2.39B	2.06B	2.25B
Other Current Assets	792M	882M	0	3.13B	3.8B	3.67B	5.79B	5.91B	5.65B	5.04B
Long-Term Investments	796M	1.11B	1.04B	671M	558M	589M	1.06B	1.07B	953M	842M
Goodwill	25.33B	27.2B	29.17B	24.61B	24.39B	24.77B	28.6B	28.67B	22.84B	22.84B
Intangible Assets	94.17B	95.57B	98.66B	103.91B	104.56B	108.28B	159.3B	161.26B	166.72B	167.74B
Other Assets	17.98B	9.15B	9.79B	11.72B	10.14B	10.88B	13.33B	17.26B	19.89B	19.77B
Total Liabilities	226.33B	220.15B	212.46B	210.12B	228.89B	247.21B	283.4B	287.22B	286.46B	284.14B
Total Debt+	109.73B	108.08B	117.09B	113.06B	133.14B	150.55B	177.93B	176.33B	174.94B	168.36B
Net Debt	105.26B	105.2B	115.02B	110.32B	130.55B	128.38B	175.01B	173.73B	172.88B	164.16B
Long-Term Debt	103.24B	105.43B	113.64B	105.87B	100.71B	123.17B	143.43B	140.68B	137.7B	121.38B
Short-Term Borrowings	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Capital Lease Obligations	0	0	0	905M	22.77B	22.77B	28.39B	27.42B	24.27B	24.34B
Total Current Liabilities+	35.05B	30.34B	33.04B	37.93B	44.87B	39.66B	47.16B	50.17B	53.22B	64.77B
Accounts Payable	5.7B	7.08B	7.06B	7.23B	7.72B	6.67B	8.04B	8.75B	10.02B	10.43B
Accrued Expenses	11.61B	10.99B	12.69B	13.79B	12.31B	12.56B	15.17B	13.35B	10.82B	11.05B
Deferred Revenue	2.97B	2.91B	4.05B	4.21B	4.65B	4.84B	6.05B	6.58B	6.96B	7.49B
Other Current Liabilities	3.91B	2.81B	1.87B	1.52B	1.81B	2.17B	2.26B	2.75B	2.75B	3.98B
Deferred Taxes	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Liabilities	42.56B	38.41B	34.55B	32.52B	30.22B	30.66B	28.92B	31.37B	29.75B	31.32B
Total Equity+	17.84B	24.03B	44.69B	54.71B	62.84B	69.27B	83.2B	92.46B	93.8B	100.58B
Equity Growth %	0.3%	0.35%	0.86%	0.22%	0.15%	0.1%	0.2%	0.11%	0.01%	0.07%
Shareholders Equity	16.43B	22.52B	43.1B	53.15B	61.4B	67.84B	81.79B	91.14B	92.43B	99.24B
Minority Interest	1.41B	1.51B	1.59B	1.56B	1.44B	1.43B	1.41B	1.32B	1.37B	1.34B
Common Stock	424M	424M	424M	429M	429M	429M	429M	429M	429M	429M
Additional Paid-in Capital	11.2B	11.18B	11.1B	13.44B	13.42B	13.4B	13.86B	13.42B	13.63B	13.47B
Retained Earnings	11.25B	15.06B	35.63B	43.54B	53.15B	60.46B	71.99B	82.38B	82.92B	89.11B
Accumulated OCI	550M	2.67B	2.66B	2.37B	998M	-71M	-927M	-1.86B	-1.38B	-923M
Return on Assets (ROA)	0.07%	0.05%	0.12%	0.06%	0.07%	0.06%	0.06%	0.06%	0.03%	0.05%
Return on Equity (ROE)	1.13%	0.63%	0.88%	0.31%	0.33%	0.27%	0.29%	0.24%	0.12%	0.18%
Debt / Equity	6.15x	4.50x	2.62x	2.07x	2.12x	2.17x	2.14x	1.91x	1.87x	1.67x
Debt / Assets	0.45%	0.44%	0.46%	0.43%	0.46%	0.48%	0.49%	0.46%	0.46%	0.44%
Net Debt / EBITDA	2.16x	2.51x	2.65x	2.33x	2.74x	2.76x	3.63x	3.65x	3.72x	3.39x
Book Value per Share	4.36	5.88	10.93	13.24	15.18	16.72	20.05	21.99	22.25	23.84

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	39.03B	21.69B	24.32B	34.34B	35.75B	41.77B	39.54B	37.14B	37.48B	36.91B
Operating CF Growth %	0.27%	-0.44%	0.12%	0.41%	0.04%	0.17%	-0.05%	-0.06%	0.01%	-0.02%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	17.88B	13.61B	30.55B	16.04B	19.79B	18.35B	22.62B	21.75B	12.1B	17.95B
Depreciation & Amortization	16.02B	15.93B	16.95B	17.4B	16.68B	16.72B	16.21B	17.1B	17.62B	17.89B
Deferred Taxes	0	-1.06B	-14.46B	389M	1.23B	1.55B	4.26B	2.97B	2.39B	815M
Other Non-Cash Items	4.93B	-3.29B	-2.73B	1.69B	4.76B	5.09B	-2.66B	-4.83B	5.63B	2.53B
Working Capital Changes	-102M	-6.75B	-5.94B	-1.18B	-6.71B	56M	-890M	-456M	-267M	-2.28B
Capital Expenditures+	-30.04B	-17.59B	-17.83B	-18.09B	-18.84B	-20.32B	-67.15B	-26.74B	-18.77B	-17.99B
CapEx / Revenue %	-	-	-	-	-	-	-	-	-	-
CapEx / D&A	-	-	-	-	-	-	-	-	-	-
CapEx Coverage (OCF/CapEx)	-	-	-	-	-	-	-	-	-	-
Cash from Investing+	-30.04B	-10.98B	-18.46B	-17.93B	-17.58B	-23.51B	-67.15B	-28.66B	-23.43B	-18.67B
Acquisitions	-3.54B	6.12B	-2.31B	-230M	-1M	-520M	57M	281M	-30M	0
Purchase of Investments	0	0	0	0	0	0	-21M	-2.27B	0	0
Sale of Investments	0	0	0	0	0	0	1000K	0	0	0
Other Investing	-8.72B	493M	1.64B	383M	1.26B	-2.67B	-46.92B	62M	1.16B	-684M
Cash from Financing+	-15.11B	-13.32B	-6.15B	-15.38B	-18.16B	1.32B	8.28B	-8.53B	-14.66B	-17.1B
Dividends Paid	-8.54B	-9.26B	-9.47B	-9.77B	-10.02B	-10.23B	-10.45B	-10.8B	-11.03B	-11.25B
Dividend Payout Ratio %	0.48%	0.71%	0.31%	0.63%	0.52%	0.57%	0.47%	0.51%	0.95%	0.64%
Debt Issuance (Net)	-1000K	-1000K	1000K	-1000K	-1000K	1000K	1000K	1000K	-1000K	-1000K
Stock Issued	0	3M	0	0	0	0	0	0	0	0
Share Repurchases	-5.13B	0	0	0	0	0	0	0	0	0
Other Financing	1.23B	-2.85B	-4.44B	-1.82B	-2.92B	-2.71B	-3.83B	-2.07B	-1.47B	-1.07B
Net Change in Cash+	-6.13B	-1.59B	-289M	1.03B	1M	19.58B	-19.34B	-50M	-614M	1.14B
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	10.6B	4.47B	3.18B	2.89B	3.92B	3.92B	23.5B	4.16B	4.11B	3.5B
Cash at End	4.47B	2.88B	2.89B	3.92B	3.92B	23.5B	4.16B	4.11B	3.5B	4.63B
Free Cash Flow+	8.98B	4.1B	6.49B	16.25B	16.91B	21.45B	-27.61B	10.4B	18.71B	18.92B
FCF Growth %	-0.31%	-0.54%	0.58%	1.5%	0.04%	0.27%	-2.29%	1.38%	0.8%	0.01%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF / Net Income %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	113.45%	62.7%	87.61%	31.24%	32.78%	26.95%	28.94%	24.2%	12.47%	18.01%
EBITDA Margin	37.09%	33.21%	34.49%	36.23%	36.18%	36.31%	36.05%	34.76%	34.67%	35.98%
Net Debt / EBITDA	2.16x	2.51x	2.65x	2.33x	2.74x	2.76x	3.63x	3.65x	3.72x	3.39x
Interest Coverage	6.67x	5.92x	5.60x	6.21x	6.56x	6.99x	9.14x	8.51x	5.22x	4.60x
CapEx / Revenue	22.83%	13.96%	14.15%	13.82%	14.28%	15.84%	50.26%	19.54%	18.33%	13.35%
Dividend Payout Ratio	47.75%	70.56%	31.47%	62.93%	51.99%	57.48%	47.34%	50.83%	94.93%	64.26%
Debt / Equity	6.15x	4.50x	2.62x	2.07x	2.12x	2.17x	2.14x	1.91x	1.87x	1.67x
EPS Growth	80.58%	-26.54%	129.28%	-48.91%	23.67%	-7.53%	23.72%	-4.89%	-45.65%	50.91%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Verizon Consumer Group	-	-	-	-	91.06B	88.53B	95.3B	103.51B	101.63B	102.9B
Verizon Consumer Group Growth	-	-	-	-	-	-2.77%	7.64%	8.61%	-1.82%	1.26%
Verizon Business Group	-	-	-	-	31.44B	30.96B	31.04B	31.07B	30.12B	29.53B
Verizon Business Group Growth	-	-	-	-	-	-1.53%	0.26%	0.10%	-3.06%	-1.96%
Corporate And Other	3.44B	6.94B	9.39B	10.94B	9.81B	9.33B	7.72B	2.51B	2.48B	2.61B
Corporate And Other Growth	-	101.60%	35.20%	16.57%	-10.33%	-4.87%	-17.27%	-67.50%	-1.24%	5.24%
Wireless	91.68B	89.19B	87.51B	91.73B	-	-	-	-	-	-
Wireless Growth	-	-2.72%	-1.88%	4.83%	-	-	-	-	-	-
Wireline	37.72B	31.34B	30.68B	29.76B	-	-	-	-	-	-
Wireline Growth	-	-16.90%	-2.12%	-3.00%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Verizon Communications Inc. (VZ) has a price-to-earnings (P/E) ratio of 9.4x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Verizon Communications Inc. (VZ) reported $137.49B in revenue for fiscal year 2024. This represents a 24% increase from $110.88B in 2011.

Verizon Communications Inc. (VZ) grew revenue by 0.6% over the past year. Growth has been modest.

Yes, Verizon Communications Inc. (VZ) is profitable, generating $19.84B in net income for fiscal year 2024 (13.0% net margin).

Dividend & Returns

Yes, Verizon Communications Inc. (VZ) pays a dividend with a yield of 6.84%. This makes it attractive for income-focused investors.

Verizon Communications Inc. (VZ) has a return on equity (ROE) of 18.0%. This is reasonable for most industries.

Verizon Communications Inc. (VZ) generated $33.25B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

Industry Metrics

Verizon Communications Inc. (VZ) has a dividend payout ratio of 64%. This suggests the dividend is well-covered and sustainable.

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