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Verizon Communications Inc
🇺🇸 VZ · NYSE/NASDAQ · US92343V1044
Telecom
USD 42.27 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 42.27 ÷ 4.10 = 10.3
TTM period through: 2026-03-31
Forward P/E (estimated): 8.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 10.4
Net Debt/EBITDA (TTM)
3.9x
Latest quarter: 13.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 13.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
17.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
7.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
6.69%
TTM: 6.58%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 6.69%
Trailing Yield (TTM, last 12 months): 6.58%
Payout Ratio (Fwd)
69.0%
TTM: 66.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 69.0%
Payout (TTM): 66.5%
Cash Flow Payout (TTM): 30.9%
FCF Coverage (TTM): 1.74x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
2.0%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 10 Apr 2027 | — | USD | 0.708 |
| Forecast* | Quarterly | — | 12 Jan 2027 | — | USD | 0.69 |
| Forecast* | Quarterly | — | 10 Oct 2026 | — | USD | 0.69 |
| Declared | Quarterly | 04 Jun 2026 | 10 Jul 2026 | 03 Aug 2026 | USD | 0.7075 |
| Paid | Quarterly | 30 Jan 2026 | 10 Apr 2026 | 01 May 2026 | USD | 0.708 |
| Paid | Quarterly | 04 Dec 2025 | 12 Jan 2026 | 02 Feb 2026 | USD | 0.69 |
| Paid | Quarterly | 05 Sep 2025 | 10 Oct 2025 | 03 Nov 2025 | USD | 0.69 |
| Paid | Quarterly | 06 Jun 2025 | 10 Jul 2025 | 01 Aug 2025 | USD | 0.678 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Verizon is a dominant US telecommunications provider operating in a stable oligopoly, delivering essential digital infrastructure and highly predictable cash flows. Trading at $42.27 versus our P/FFO fair value estimate of $86-129, this represents an exceptional opportunity with over 100% potential upside to fair value. Worth considering for new positions at current levels, as the deeply covered 6.6% yield provides substantial income while waiting for macroeconomic headwinds to abate.
Sector Context
Verizon operates as a dominant provider in the US telecommunications oligopoly, delivering essential wireless and broadband services to millions of consumers and enterprises. While the sector requires massive capital expenditures for spectrum and network infrastructure—leading to structurally higher debt loads—these investments yield highly predictable, utility-like recurring revenues ideal for sustaining long-term dividends.
Temporary Opportunity Identified
High interest rates are mechanically suppressing the valuation of debt-heavy, capital-intensive telecom stocks, compounded by headline fears regarding legacy lead cable liabilities.
📊 Strategy Analysis
- • Trading at $42.27, the stock sits substantially below our P/FFO fair value range of $86-$129, alongside a deeply discounted P/E of 10.3.
- • Offers a highly attractive 6.6% dividend yield that is exceptionally well-covered by a cash flow payout ratio of just 30.9%.
- • Operates in a highly consolidated US telecom oligopoly, providing essential, recession-resistant digital connectivity.
⚠ What to Watch
- • Net Debt/EBITDA of 3.85x exceeds conservative 3.0x thresholds, leaving the company exposed to refinancing risks in a 'higher-for-longer' interest rate environment.
- • Multi-billion dollar long-term structural liabilities overhang the stock, specifically related to the environmental remediation of legacy lead-sheathed cables.
- • Historical 5-year EPS CAGR has declined by 5.3%, making successful 5G monetization critical to reversing the earnings trajectory.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.