Verizon Communications Inc. (VZ) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Verizon Communications Inc.

Updated on October 27, 2026 · accounts published on October 26, 2026

A cash-generating telecom with steady margins, little growth and a heavy debt load

Verizon Communications trades at a P/E of 11.4 over the last 12 months, 43 % below its sector median, and pays a 6.3 % dividend yield.

• Is Verizon Communications expensive or cheap? Its P/E of 11.4 is 43 % below the sector median of 20.0 and 5 % below its own ten-year median of 12.1.
• How is the business doing? Revenue grew 2.5 % over the last 12 months while EPS fell 2.2 %; the 20.5 % operating margin trails its 21.9 % average.
• How strong is the balance sheet? Net debt of $44.54 per share equals 100 % of the share price (fiscal 2025), and the Altman Z of 1.2 sits in the danger zone.
• Does the network generate enough cash to cover the dividend? Fiscal 2025 dividends took 57 % of free cash flow, well inside the 80 % ceiling considered healthy for telecoms.
• What to expect from the next earnings? Next earnings on January 29, 2027, with analysts expecting EPS of $1.15; it beat estimates in 7 of the last 8 quarters.

Is Verizon Communications expensive or cheap?

Over the last 12 months Verizon Communications trades at a P/E of 11.4, 5 % below its ten-year median of 12.1, inside a decade range of 6.1 to 17.0. It has traded cheaper than today 42 % of the time over that decade, so the current multiple is typical for this stock. Against 80 sector peers with a median P/E of 20.0, the discount is 43 %. EV/EBITDA of 7.6× sits in line with its five-year average of 7.5×, and the free cash flow yield of 12.2 % is high. The shares are up 19 % in 12 months and still 13 % below the 52-week high of $51.45.

How is the business doing?

Over the last 12 months revenue rose 2.5 % and EPS slipped 2.2 %. The operating margin of 20.5 % is below both fiscal 2025 (21.2 %) and the 2014-2025 average of 21.9 %, a mild erosion. ROE is 15.5 %, but ROIC of 5.8 % tells the fuller story: it matches the sector median of 5.7 % across 124 companies and has cleared 10 % in only 3 of the last 10 fiscal years, with a low of 6.0 % in 2023. Verizon Communications runs a stable business that earns a modest return on the large amount of capital it ties up.

How strong is the balance sheet?

Net debt of $44.54 per share at the end of fiscal 2025 is worth slightly more than the entire share price. Over the last 12 months debt-to-equity is 1.81 and the current ratio 0.60, so short-term liabilities exceed short-term assets. The Altman Z-score of 1.2 falls in the danger zone and the Piotroski score is a middling 4 of 9. Telecoms usually carry more leverage than other businesses, but at 3.8× net debt to EBITDA in fiscal 2025, Verizon Communications sits just above the 3.5× considered tolerable for the sector.

Does the network generate enough cash to cover the dividend?

Telecoms are capital-intensive cash cows, so they are judged by free cash flow and the dividend more than by growth. On those tests Verizon Communications scores well: in fiscal 2025 the EBITDA margin was 34.5 % (healthy from 30 %), capex took 12.3 % of revenue (healthy up to 20 %) and the payout was 57 % of free cash flow (healthy up to 80 %). The dividend yields 6.3 % over the last 12 months and has risen for 11 consecutive fiscal years. The weak point is growth: revenue per share grew 0.1 % a year in 2022-2025, short of the 2 % healthy mark.

What to expect from the next earnings?

On October 26, 2026 Verizon Communications reported EPS of $1.31 against $1.27 expected, a 3.1 % beat, and it has topped the estimate in 7 of the last 8 quarters. For the quarter due on January 29, 2027, analysts expect EPS of $1.15. The 2026 EPS consensus has barely moved in 30 days, from $5.01 to $5.00 across 13 analysts, and revenue forecasts are equally stable. Of 61 analysts, 22 recommend buying, 35 holding and 3 selling, a cautious stance that fits a business with steady results and little growth.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.