Verizon Communications VZ
Verizon Communications is one of the largest telecommunications operators in the US, offering mobile phone services, broadband internet, and business solutions through its wireless and fiber optic network. Verizon offers an attractive valuation (P/E 12.26, FCF yield 8.93%) and a solid dividend (6.01%), but its high debt (ND/EBITDA 3.76) and negative earnings growth (-22%) warrant caution in a rising rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Verizon Communications is one of the largest telecommunications operators in the US, offering mobile phone services, broadband internet, and business solutions through its wireless and fiber optic network. Verizon offers an attractive valuation (P/E 12.26, FCF yield 8.93%) and a solid dividend (6.01%), but its high debt (ND/EBITDA 3.76) and negative earnings growth (-22%) warrant caution in a rising rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.2 |
| Quality / Moat | 6.0 |
| Valuation | 7.6 |
| Growth | 2.6 |
| Dividend | 8.1 |
| Momentum | 7.4 |
| Risk & Context | 8.6 |
OVERALL SCORE: 7.1/10
Context and risks
The rise in 10-year Treasury yields (5.17%) makes refinancing Verizon's high debt (ND/EBITDA 3.76) more expensive. Additionally, the AI capex cycle and the potential arrival of 6G pressure investment, although Verizon is not a hyperscaler.
News considered in the analysis
- Can Verizon Communications (VZ) Stay Cheap As 6G Plans Expand? — El avance hacia 6G implica un ciclo de capex futuro que podría presionar el flujo de caja libre, aunque es un plan a largo plazo y no afecta a los resultados actuales.
- 3 U.S. Dividend Stocks Offering Defensive Income as Fed Rate Pressure Persists — El artículo destaca a Verizon como valor defensivo de ingresos, lo que refuerza su atractivo para inversores de dividendos en un entorno de tipos altos.
- Comcast’s Dividend Keeps Growing While the Market Treats It Like a Melting Ice Cube — Noticia sobre un competidor (Comcast), sin impacto directo en los fundamentales de Verizon.
- Want Income Now? 3 Stocks Paying 5% or More and the Risk That Comes With Each — Listado genérico de acciones con dividendo, sin información específica nueva sobre Verizon.
- ‘They Get You Coming In, They Get You Going Out’: Clark’s Fix for T-Mobile’s Exit Bill Trap — Noticia sobre T-Mobile y sus prácticas comerciales, sin impacto directo en Verizon.
Verdict: Hold. The high dividend and cheap valuation provide support, but debt and lack of growth limit upside potential.
Main risk: The main risk is the high leverage (ND/EBITDA 3.76) in a rising interest rate environment, which makes debt service more expensive and could pressure free cash flow and the dividend.
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