VZ Verizon Communications Inc

Verizon Communications is one of the largest US wireless carriers and a major broadband provider, focusing on 5G network expansion and business services. Sector: Communication Services.

Verizon Communications Inc (VZ) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 7.46%, WACC is 4.56%, and the economic spread is 2.90%. On balance, the company marginally exceed their cost of capital, suggesting modest but present value creation. Supporting metrics show ROE at 16.91% and ROA at 4.71%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Multiple analysis puts the company at trailing P/E of 12.18, forward P/E of 10.04, PEG of 1.08. Trailing and forward multiples are nearly identical, indicating the market is pricing the company on a relatively static earnings assumption. Growth-adjusted, the company looks reasonably valued — the PEG ratio implies the market is not extrapolating the growth narrative aggressively. At 0.91, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

On the margin front: gross margin sits at 58.99%, operating margin at 22.04%, and free cash flow margin at 14.40%. At this level, the company reflects reasonable cost discipline and adequate pricing leverage at the production layer. Operating margins sit in a healthy range — not exceptional, but indicating reasonable operational efficiency. Moderate free cash flow margins suggest the company that generate cash but rely on continued revenue growth to sustain reinvestment capacity. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

On the forward picture: TTM revenue growth of 1.96% indicating muted but still positive top-line momentum across the company. Consensus EPS estimates point to 21.4% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. Analyst price targets suggest the target set points to a fairly constrained upside profile on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the company can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite picture leans positive, with capital efficiency and growth momentum providing the core of the investment thesis.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.