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Verizon Communications Inc
🇺🇸 VZ · NYSE/NASDAQ · US92343V1044
Telecom
USD 48.27 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.6
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: 48.27 ÷ 3.84 = 12.6
TTM period through: 2026-06-30
Forward P/E (estimated): 9.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 12.2
Net Debt/EBITDA (TTM)
3.9x
Latest quarter: 15.3x
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: 2026-06-30
Latest quarter (2026-06-30): 15.3x
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
15.8%
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
8.0x
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)
6.24%
TTM: 5.95%
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): 6.24%
Trailing Yield (TTM, last 12 months): 5.95%
Payout Ratio (Fwd)
73.7%
TTM: 71.9%
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): 73.7%
Payout (TTM): 71.9%
Cash Flow Payout (TTM): 30.0%
FCF Coverage (TTM): 1.84x
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 Jul 2027 | — | USD | 0.708 |
| Forecast* | Quarterly | — | 10 Apr 2027 | — | USD | 0.708 |
| Forecast* | Quarterly | — | 12 Jan 2027 | — | USD | 0.69 |
| Forecast* | Quarterly | — | 10 Oct 2026 | — | USD | 0.69 |
| Paid | Quarterly | 04 Jun 2026 | 10 Jul 2026 | 03 Aug 2026 | USD | 0.708 |
| 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Verizon operates an essential digital infrastructure business within a stable oligopoly, delivering highly predictable cash flows that securely cover its ~6.0% dividend yield. While structural debt and legacy liabilities pose ongoing challenges, the depressed valuation and exceptional free cash flow generation make the stock a compelling proposition. Worth considering for new positions.
Sector Context
Verizon provides essential communications, broadband, and wireless infrastructure. Within the DGI framework, telecom services act as quasi-utilities, offering immense and highly predictable cash flows, stable oligopoly protection, and high yields, though characterized by intense capital expenditure requirements and elevated debt levels.
Temporary Opportunity Identified
Verizon's stock continues to trade at a discount due to negative sentiment surrounding massive capital expenditures, lead-cable liabilities, and a heavy debt load. However, the core underlying business remains highly cash-generative, easily servicing its debt and dividend obligations.
📊 Strategy Analysis
- • Dividend yield is highly attractive at 5.95% (TTM) and safely covered by free cash flow, indicated by a strong 1.84x FCF coverage ratio and a low cash flow payout of 29.98%.
- • Extremely favorable valuation with a P/E of 12.59x and P/FFO of 5.53x, positioning the stock significantly below fair value ranges.
- • Strong baseline profitability within a durable oligopoly, maintaining an ROE of 15.84% and robust EBITDA margins of 34.52%.
- • Generates a 7.69% Total Shareholder Yield, heavily supported by cash dividends but supplemented by a 1.74% net buyback yield.
⚠ What to Watch
- • Net Debt/EBITDA remains elevated at 3.89x, creating a structural headwind for refinancing costs and capital flexibility in restrictive rate environments.
- • Material long-term structural liabilities related to the environmental remediation of legacy lead-sheathed cables overhang the company.
- • The 5-year EPS CAGR has declined by 5.3%, placing heightened execution risk on 5G monetization and the successful integration of recent acquisitions.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.