T-Mobile, a main competitor has mind blowing numbers not that long ago and that was due to a cut in the cost of a cell phone plan. Looking back 10 years ago, there was a significant difference in how each company performed reception wise. That gap has now closed dramatically and is not much of a factor any more. Certainly there are locations that work better with one provider over another, but that may always be the case.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Verizon Communications income statement, its balance sheet, and the statement of cash flows. Potential Verizon Communications investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Verizon Communications investors may use each financial statement separately, they are all related. The changes in Verizon Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Verizon Communications's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Verizon Communications
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Verizon Communications performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Verizon Communications shares is the value that is considered the true value of the share. If
the intrinsic value of Verizon is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Verizon Communications. Please read more on our
fundamental analysis page.
How effective is Verizon Communications in utilizing its assets?
Verizon Communications reports assets on its Balance Sheet. It represents the amount of Verizon resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Verizon Communications aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Diversified Telecommunication Services space. To get a better handle on how balance sheet or income statements item affect Verizon volatility, please check the breakdown of all its
fundamentals.
Are Verizon Communications Earnings Expected to grow?
The
future earnings power of Verizon Communications involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Verizon Communications factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Verizon Communications
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Verizon
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Verizon Communications earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Verizon Communications dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Verizon one year expected dividend income is about USD1.74 per share.
Dividends Paid is likely to rise to about (10.5
B) in 2024.
Dividend Yield is likely to drop to 0.04 in 2024.
Investing in dividend-paying stocks, such as Verizon Communications is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Verizon Communications must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Verizon Communications. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Verizon Communications Gross Profit
Verizon Communications Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Verizon Communications previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Verizon Communications Gross Profit growth over the last 10 years. Please check Verizon Communications'
gross profit and other
fundamental indicators for more details.
Breaking down Verizon Communications Indicators
Back to Verizon, the company also added Yahoo to their portfolio, which did not go as planned. If you remember, there was the data breach that affected millions upon millions of users, compromising sensitive data. This has been worked out in the deal, but users are still unsure of Yahoo. Verizon also beat on many other numbers and that is giving investors confidence in the stock going forward.
Some of the risks to keep in mind are first, the overall sale of new phones. The sale of new phones and plans are the lifeblood of Verizon. They are lucky enough to have an exclusive device from Google, the Pixel line of devices. Google is beginning to strongly impact the smartphone market and everyone is taking note. Verizon is the exclusive provider of the Pixel and that can play well into the hands of the company.
Secondly, there is the risk of a more competitive market. Sprint and T-Mobile could combine into one large company and that would make it more difficult to compete from a shear asset stand point. This has talked about before but as time move on, it could become more and more of an issues. Lastly, there is Amazon and the ability they have to undercut the market. This goes without saying but Amazon seems to be a competitor of many in this field.
Verizon continues to push on in the face of stuff competition and this was reaffirmed with their latest numbers. Keep a lookout though for what they are doing going forward. You want to invest in a growing company that is going to continue to provide investors ROI. Cell phones are a part of our daily life and will be for the near future, meaning Verizon has much room to grow.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Verizon Communications. Please refer to our
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