VZ Investment Analysis Report & Stock Research, Verizon Communications, Inc.

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Verizon Communications, Incorporated (VZ)

VZ Stock Report

2-Year Price History

Recent Price
(6/4 12:49PM) -0.2%
$29.52
52-Week Price
$23.07 - $36.34
Market Capitalization
$87.8 Billion
Dividend Yield
6.20%
Most Recent Dividend
$1.75
All Financial News about VZ is here.

About Verizon Communications, Inc.

Verizon Communications, Incorporated is considered to operate in the Technology sector. They specifically operate in the Telecom Services/Domestic business segment contained within the Telecommunications industry.

The Company provides communications services through two reportable segments, Domestic Wireless and Wireline.

Ockham's Rating

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VZ Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, VZ the high and low end of the Price to Sales per share ratios are 1.56x and 1.07x respectively.

Notice that VZ's current Price to Sales per share ratio is 0.82x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $29.26, VZ is 38% below where we would expect to see it. This will beneficially factor into our final analysis of VZ as it is not often that this stock sinks to these levels.

VZ Cash Earnings

Looking at VZ specifically in their Cash Earnings capabilities, Ockham views VZ as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for VZ, the current level of Cash Earnings compared to its historical levels helps identify where VZ is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 6.38 and a historical low Cash Earnings per share ratio of 4.38, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for VZ? From the Ockham perspective, we are looking specifically at VZ to see if the market is recognizing the huge disparity between VZ's past stock price to Cash Earnings ratio to today's levels. At a difference of 25% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at VZ. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

VZ Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for VZ to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

The estimated annual dividend for VZ is $1.84 producing a current dividend yield of 6.29%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from VZ against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from VZ over previous years was 7.98% while the lowest dividend yield was 2.40%. VZ’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 21.19% above the median which weighs very positively on our analysis of VZ.

Peer Comparison

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Verizon Communications, Inc. Industry Grouping

(6/3/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding VZ) 13.38 4.96 » 73.26 2.13 1.33 » 13.56 11.14% 16.83%
*10 year range does not include current year values
Telefonica S.A. TEF $101.3 Billion $64.61 9.65 4.90 » 34.17 1.09 0.91 » 4.72 17.11% 35.72%
Vodafone Group PLC ADR VOD $97.6 Billion $18.42 4.00 3.26 » 119.35 1.34 1.16 » 11.32 7.95% 1.60%
Verizon Communications, Inc. VZ $87.8 Billion $29.59 4.05 3.12 » 10.80 0.82 0.67 » 2.76 7.52% 15.78%
Qualcomm, Inc. QCOM $72.1 Billion $43.58 32.53 9.50 » 163.96 6.15 3.08 » 46.74 22.92% 18.80%
Siemens AG ADS SI $65.3 Billion $75.75 16.25 3.49 » 13.06 0.53 0.31 » 1.36 4.72% 13.18%
NTT DoCoMo, Inc. ADS DCM $64.8 Billion $14.44 4.47 3.66 » 35.76 1.54 1.17 » 3.64 2.99% 14.84%
>
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The latest TV Media Discussion

6:50:09 PM VZ $29.59 Verizon Communications, Inc.
Mad Money
18 hours ago (06/03)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Mad Money said about VERIZON COMMUNICATIONS, INC. …more details… LEARN MORE
6:27:24 PM VZ $29.55 Verizon Communications, Inc.
Mad Money
1 days ago (06/02)
“…But you know what, sprint is not sprint's balance sheet is fixed. On fridays we do speculation we've had a really good record with these. Sprint is a speculation. If you were to call me am I diversified on wednesday and you said you had both sprint and VERIZON, I would say you know what, that's okay, because VERIZON is utility and sprint is a speculation, and I think the speculation works. I think they're either going to turn the company around or sell the company. That's a win, sir. That's a win. The chart shows strength in …” …more details…
8:52:38 AM VZ $29.35 Verizon Communications, Inc.
3 days ago (06/01)
“…Think are the prominent candidates. >> I think the four most prominent candidates will be google ups apple and amazon. Apple already have ibm and microsoft at&t and VERIZON so a lot of apple's business lines are already covered and with only 30 stocks, you are going to want as much diversity as they might argue that ups is more of a transport. But I would argue that there's …” …more details…
6:41:41 PM VZ $29.34 Verizon Communications, Inc.
Mad Money
5 days ago (05/29)
“…Lynn in the illini. Lynn. >> caller: a rousing land of lincoln boo-yah from palatine, how are you doing, man? >> not bad. >> caller: vz. VERIZON. >> i'm struggling with vz because there's a rotation out of vz even as identifyosfios is taking new york city and the rest of the east by storm. Even though I believe wireless is still en fuego people don't believe in VERIZON. I say get into some VERIZON, ride that dividend. I'm not backing away. Now there, have been some critics of me on the web. Of course, that's every day. Saying why does cramer recommend what has it done wrong? It gives you that great yield, and when it finally moves you'll do terrifically. I'm not abandoning VERIZON. >> caller: bah bah-boo-yah from the land of bill clinton, most creatively virile president in cramerican history. >> well, i'm not going to fight him. >> caller: thank you for being …” …more details…
3:05:23 PM VZ $28.96 Verizon Communications, Inc.
5 days ago (05/29)
“…Missed on earnings by 7 cents. Let's go to the good stuff. Palm, great buzz on the pre-smart phone. At&t, VERIZON, up 5.6%. Apollo group off the highs. The company having a very good retail. The retail across the board at …” …more details…
10:14:26 AM VZ $28.97 Verizon Communications, Inc.
6 days ago (05/29)
“…You've got to say this rally >> more positive than she used to be, a good sign there. >> you can take a look how the dow are moving on the dow jones industrial average, VERIZON, citi, merck, coca-cola on the up side and the down side. As we got in, chicago purchasing managers got in economic numbers sort of put a damper on the …” …more details…
9:33:09 AM VZ $29.21 Verizon Communications, Inc.
6 days ago (05/29)
“…They are not calling a bottom yet in terms of the pc market. A lot of good buzz around palm and the pre. Sprint has it through 2009. But both at&t and VERIZON are positive on it. Quick check on the big cap names. R.I.M. Up .3 of 1%. Google up thafl half a percent. Apple at $1.35. …” …more details…
9:04:07 AM VZ $29.27 Verizon Communications, Inc.
6 days ago (05/29)
“…To the upside. Want to talk about palm and r.I.M. Palm has the short strint with sprint. But VERIZON and at&t, goldman sachs says that's positive for them. You want insight into the consumer, the label market? Cintas, they lowered their guide …” …more details…
6:43:31 PM VZ $29.27 Verizon Communications, Inc.
Mad Money
6 days ago (05/28)
“…>> boo agree, michelle. We bought sienna and we want to know where does it go from here? I want you to double down and that's precisely the kind of stock, and at&t and VERIZON will start spending and sienna is part of that group of stocks they really like right now which i'm willing to send in juniper. Let's go to anthony in …” …more details…
5:13:41 PM VZ $29.27 Verizon Communications, Inc.
Fast Money
6 days ago (05/28)
“…Download music. >> it will look just like the and as a matter of fact, the fact that they're coming out there with the music, the touch capability, and then you start to look at they're with sprint for the first few months and six months later, they go to VERIZON. That opens up an entirely big -- you're talking about the ability to get out there to 80 million, plus another 50 million. That will be huge. >> and we spoke about r.I.M. On the show about the breakout, and that's what you have to focus on …” …more details…
3:55:47 PM VZ $29.22 Verizon Communications, Inc.
6 days ago (05/28)
“…Fell short of analyst expectations and shares hit as a result of that news. Palm shares in focus, tons of headlines coming out of carlsbad, california where brian sullivan is. The company stock rising on comments from VERIZON that the mobile carrier said today, it will carry the palm pre in the next six month and also the palm pre expected to have connecttivity to itunes, you can …” …more details…
3:05:34 PM VZ $29.41 Verizon Communications, Inc.
6 days ago (05/28)
“…Yahoo! Outside of yahoo! Japan has very little 4 x exposure. Phone news out of rim and palm. Rimm up 4.6%. The blackberry storm will be sold at VERIZON. We have confirmation the palm 3 will be carried by VERIZON. That's good news for palm, up 9.2%. Dell, novel and marvel, all report earnings after the closing bell. They're all up. …” …more details…
2:18:45 PM VZ $29.25 Verizon Communications, Inc.
6 days ago (05/28)
“…I love that exclusivity for seven months. >> as some people say exclusivity, you're saying -- >> exactly. VERIZON has a lot of exciting things happening. >> vz you like. We talk about yield. This came up with rick santelli. You're saying 5% is where you …” …more details…
12:00:33 PM VZ $29.24 Verizon Communications, Inc.
7 days ago (05/28)
“…Biggest bondholders are supporting a debt for equity swap offer. Those represent 20% of gm's outstanding debt. VERIZON wireless will sell the palm tree and the new version of the blackberry storm in the next six months. Worldwide semiconductor sales will fall 22% next year. …” …more details…
5:39:23 PM VZ $29.63 Verizon Communications, Inc.
Happy Hour
8 days ago (05/26)
“…Who to go after for sec violations. Do you remember when the bush administration wanted four major telephone providers in the united cody: at&t, sprint, VERIZON >> and qwest. To buy illegally spy them for americans, and qwest said no. And chairman of qwest got indicted for insider …” …more details…
12:12:52 PM VZ $29.54 Verizon Communications, Inc.
9 days ago (05/26)
“…Engine "bing." >> after the cherry -- >> or boda-bing? >> I department get google or yahoo! >> someone invented VERIZON. >> who knows? >> nobody asked that. >>> the market task force what they think of the market so far this week and get a reading of home prices as well. >>> coming up also this hour on …” …more details…
2:44:19 PM VZ $28.96 Verizon Communications, Inc.
12 days ago (05/22)
“…The nasdaq is higher as well, the s&p, some names moving fewer of those. Most are moving higher. Bank of america, american express, g.E., caterpillar. Intel is lower, general motors and VERIZON. >> david: you want to get out of dodge? It's not too late if you still have no plans for the memorial day weekend. >> liz: lost of last-minute travel deals out there. We'll run some of them down for you next on fox business. …” …more details…
2:51:33 PM VZ $28.83 Verizon Communications, Inc.
13 days ago (05/21)
“…To get control, don't have too many variances coming out when you have a new platform like this. But if it's smart if they get adoption, they should go into VERIZON and at&t and be available across the board to compete against the iphone and the an droid and other popular products selling blackberry. >> liz: good to see you. With david's palm pilot, I …” …more details…
1:32:16 PM VZ $28.98 Verizon Communications, Inc.
13 days ago (05/21)
“…>> coming up on the half hour. Let's ask steve grasso about the plunge protection team. He'll give us the pulse of the >> later, we talk to david pogue. He'll talk about VERIZON's big bet in a high-tech home phone. >> I love this thing. >> I think we all do. This is a very cool device. Wait till you see this thing. Meant, the markets are still …” …more details…
7:21:06 AM VZ $29.83 Verizon Communications, Inc.
Squawk Box
14 days ago (05/21)
“…Were able to recapture the spectrum, or the airwaves the broadcasters were using for analog, and we resold some of them in the open marketplace, raised $20 billion from companies like at&t and VERIZON, so they can meet the demand for wireless broadband services over pdas and laptops. It's just exploding. At the same time, we had enough spectrum leftover to provide …” …more details…
6:12:28 PM VZ $29.95 Verizon Communications, Inc.
Mad Money
14 days ago (05/20)
“…Dipping. To me you remind me of a guy who works at a company and you're also buying the stock of the company and you're overweighted in that company. I would so much prefer to see you in a VERIZON or an att. You in a high-yielding oil I think you want to diversify away from your core business so you don't have -- so you're not all in riding. I think that's the safe way to go. …” …more details…
8:12:40 AM VZ $29.65 Verizon Communications, Inc.
Squawk Box
15 days ago (05/20)
“…By what we're seeing in the capital markets right now. >> speaking of that whether it's ge paper or debt. We can't keep all the deals we mentioned VERIZON, the convertibles, do you think this new appetite for credit is because of real demand or is it just some people suggest that just because sheer money supply …” …more details…
6:26:45 PM VZ $29.59 Verizon Communications, Inc.
Mad Money
15 days ago (05/19)
“…Good call. >> caller: we've got a large stake in vodafone from over the >> ouchie. >> caller: vodafone's 45% stake in VERIZON wireless has been priced into the stock and whether with the wireless business becoming a commodity vodafone will continue to return value to their shareholders. >> I think the rest of vodafone is what the problem is. I think the vodafone wireless business which is co-owned indeed with VERIZON as you said is really just a beautiful ivan seidenberg is not a poker he's actually a telephone lineman, worked his way up to the top of VERIZON. But I just wish if VERIZON could get its hands on all vodafone's wireless VERIZON would be a $40, $50 stock. But it's not going to. And that's the asset everybody wants. Bad quarter. I don't trust it. Listen to lady gaga and put on …” …more details…
4:46:39 PM VZ $29.67 Verizon Communications, Inc.
15 days ago (05/19)
“…Variable than other sectors. But we are intrinsically very it's a very needed service for both families and enterprises. >> it got a boost thanks to strong performance by VERIZON wireless. It hold a 44% stake in the u.S. He said his investment in VERIZON helped ease the growing stress he faces from the slowdown in european markets. >> I would say it's easy to be relaxed when you own 45% of such a well performing company. …” …more details…
2:38:34 PM VZ $29.72 Verizon Communications, Inc.
15 days ago (05/19)
“…It's am, the product is not tran transcendent. Research in motion is very heavily promoted by VERIZON. Just be aware that this area is in flux and it's absolutely ready for another competitor. I think there's room. >> you're saying in terms of -- …” …more details…
1:33:58 PM VZ $29.76 Verizon Communications, Inc.
15 days ago (05/19)
“…Issuance is coming out powerful. We've already surpassed all of '08 supply, which was only around $14 billion. We see companies like VERIZON and principal financial. The list goes on. Rates are going up far va rye think of reasons, not the least of which is clean out the closet and bring in some more higher …” …more details…
6:23:36 PM VZ $29.98 Verizon Communications, Inc.
Mad Money
19 days ago (05/15)
“…Burn rate is less than a million stabilized it hasn't seen any smacker stock has about $2 in cash per share. Keep itself going until we get that at&t, VERIZON, turning on the faucet if not the fire hose ciena is your play. It's a great speculative play on more video going for a …” …more details…
6:21:39 PM VZ $29.98 Verizon Communications, Inc.
Mad Money
19 days ago (05/15)
“…That's a 45% annual growth rate. I do not have any other industries that are growing at that speed. With ciena selling necessary parts making the expansion possible I can't believe the stock's still at 9. At&t and VERIZON together expected tore 6.5 million triple play subscribers. That's people who get tv, not something the phillies seem to be hitting in every single time they've played a game these …” …more details…
6:21:03 PM VZ $29.98 Verizon Communications, Inc.
Mad Money
19 days ago (05/15)
“…At about a 15% annual clip despite the weak economy. And because of the endless wars between the two phone companies, cramer's faves att and VERIZON and cable, ciena makes money like an arms dealer. The migration of networks to the next generation of optical technologies, stuff ciena cells, it's pretty unavoidable, isn't it? The question is how quickly it happens 37 last quarter VERIZON which along with att is one of the two largest customers of ciena, spent very little on new equipment. But now it's flush. Remember it just sold the lines at frontier for 8 billion? I think it's going to start …” …more details…
6:38:05 PM VZ $29.90 Verizon Communications, Inc.
Mad Money
20 days ago (05/14)
“…>> salmon and chinook boo-yah back at you. >> i've been following your terrific show for three months what's with VERIZON selling off to frontier communications? I thought VERIZON was a good investment. >> oh, come on, my friend, buddy pal bruce in washington! What's ivan seidenberg doing? He's selling the copper wire …” …more details…
6:04:14 PM VZ $29.97 Verizon Communications, Inc.
Mad Money
20 days ago (05/14)
“…The state of hibernation. Now I see something totally and completely different. We move forward to a rally covered by increased tech spending in a bunch of different areas. When I see VERIZON's sale of lines from 8 billion to frontier, it remind meese that VERIZON spent very little on capital equipment this last quarter. I think that's about to change which is why I like the tech lacks, why I like star and …” …more details…
7:39:08 AM VZ $29.80 Verizon Communications, Inc.
21 days ago (05/14)
“…It turns any location into a mobile hot spot. Beginning the first week of june, sprint customers will also be able to pick up the device on-line and in stores for $99 with a two year contract. VERIZON is also readying a >>> sony's walkman is about to make a comeback and it will be a high-tech one at that. Come june, sony will unveil its first wireless enabled walkman. Clearly looking for a bigger …” …more details…
4:22:22 PM VZ $29.75 Verizon Communications, Inc.
21 days ago (05/13)
“…Reiterated ibm will receive $920 software and services will guard against economic uncertainty. Ibm finished like this. Technology weak across the board >>> VERIZON announced a deal to sell rural phone lines in 14 states. Frontier communications. The price tag there, $5.3 billion in stocks. Prove move allows VERIZON to move toward profitable wireless and broadband services. Take a look at the stock, down, >>> boeing and augusta winning a contract worth $1.2 billion to …” …more details…
3:24:08 PM VZ $29.80 Verizon Communications, Inc.
21 days ago (05/13)
“…And to help us reach our goals. Nothing succeeds like the power of teamwork. Training and teamwork to make jobs into careers. At VERIZON wireless, we are learning and working together... So we work better for our customers. …” …more details…
10:45:06 AM VZ $30.54 Verizon Communications, Inc.
22 days ago (05/13)
“…Sales data. The dow is down 8339. Five dow stocks are higher. Health care, merck and pfizer, j & j speaking of home retail and VERIZON. Other 25, the dow 30 are down. What about the financials? There you go. Citigroup, morgan stanley, j.P. Morgan chase, wells fargo and bank of america are all down as well. Dagen, yesterday, gm-- …” …more details…
10:41:04 AM VZ $30.59 Verizon Communications, Inc.
22 days ago (05/13)
“…Rural telephone service. All-stock deal. Valued at $8 billion. We'll see whether that actually comes to bear. But it's so much complex but it's basically 4.8 million access lines that will go from VERIZON -- this is part of a strategy VERIZON has been embarked for for quite some time. Investing access lines in remote there you see it in terms of fra what frontier will do. They merge that with frontier. VERIZON investors will get a share in frontier. Ultimate value they say around $5 billion worth of frontier …” …more details…
10:40:26 AM VZ $30.60 Verizon Communications, Inc.
22 days ago (05/13)
“…Never die in the hedge fund community, do they? Another reason why people may be >>> we did get a deal today worth mentioning. VERIZON in a deal to sell a really spinoff, a lot of its access lines to frontier communications, the largest or one of the largest providers of rural telephone service. …” …more details…
9:39:58 AM VZ $30.41 Verizon Communications, Inc.
22 days ago (05/13)
“…And drug stocks will represent watch for fast money and on the sidelines. Frontier communications pretty big news for this, buying VERIZON's wire line business for 8.6 billion dollars. This is an absolutely huge deal. It's going to triple this company's wire line business to 7 million from 2.3 million. The stock's down, but big news …” …more details…
8:26:16 AM VZ $30.40 Verizon Communications, Inc.
22 days ago (05/13)
“…>>> some breaking news now. Selling 4.8 million access lines in 14 states to frontier communications corporation for $5.2 billion in VERIZON stock. This makes frontier communications the nation's largest communications provider focused on rural areas. >>> well, today's down economy is cuting into medicare and social security …” …more details…
7:51:48 AM VZ $30.40 Verizon Communications, Inc.
Squawk Box
22 days ago (05/13)
“…To be spun off sb a new company. It's called spinco. It's going to have local exchanges and related business assets in 14 different states. Frontier will get part of that VERIZON shareholders will get a part of the kpaechblt 66 to 71%. So about 68% of the company, this new spinco will go to VERIZON shareholders, to clears the way for frontier are to pick up some new lines but also for VERIZON to operate more towards the plan it's been building which is to focus on wireless assets and fios. It's a plan that works best in areas where houses are close together. A lot of these lines are …” …more details…
View All Verizon Communications, Inc. News

Key Fundamentals

VZ - Verizon Communications, Incorporated Fundamentals
Price (6/4 12:49PM) $29.52
Volume (6/4 12:49PM) 5.6 Million
Last Close Price $29.59
10 Day Average Volume 14.9 Million
13 Week Price Range $26.10 - $33.07
52 Week Price Range $23.07 - $36.34
LTM Revenue $100.1 Billion
 
Shares Outstanding (12/2008) 3.0 Billion
Market Capitalization $87.8 Billion
Shares Held By Institutions 1.8 Billion
Institutional Holders 1,557
% Shares Held By Institutions 62.70%
Earnings Per Share (EPS) $2.26
P/E Ratio 13.00
Book Value Per Share $14.10
 
Gross Margin 60.20%
Annual Dividend 1.84
Dividend Yield 6.20%
Beta 0.60
Fiscal Year Ends December
NASDAQ 1836.59

10.67  0.58%
S&P; 500 937.34

5.58  0.60%
^DIA 87.25

0.3  0.35%