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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
VZ
Primary Facts
Telecom Services
Name:
-
Sector:
- 838000.00K
Industry:
41.3
CEO:
Mr. Hans Vestberg
Total Employees:
Large Cap
Our Technological Advancement Rating
Our Rating:
2.613923206
1.110711063
Verizon Communications Inc. (XNYS:VZ) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
VERIZON COMMUNICATIONS INC. (XNYS:VZ)
One Month Price Target:
Six Month Price Target :
$41.38
Likely Price in One Year's Time:
Ticker:
$41.77
Likely Trading Range Today Under (Normal Volatility)
$41.37
Price Upper limit ($) :
$42.23
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P52
This week:
$40.18
This month :
$38.8
Other Primary facts
Market Cap:
4.20B
Market Cap Classification:
172.61B
Number of Shares
IPO Date:
B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-6.74%
$36.29
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$44.19
7.21%
$38.41
$46.51
Medium risk (<10%) entry points
Buy Call
Sell Call
$42.94
Buy Put:
Sell Put:
$36.09
$39.66
$43.43
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Telecom Services
Sharpe Ratio:
VZ, is amongst the top 40% lowest yielding stocks in terms of daily returns
Comparison:
0.97%
-5.552209309
Sharpe ratio is -555.22% lower than the industry
Average Returns/Yield of
Telecom Services
Daily returns:
1
Weekly returns:
-0.05%
Monthly returns:
-0.24%
Yearly returns:
-11.65%
Comparison of returns:
-1.655613854
Classification:
Average annual returns/yield (last 3 years) is -165.56% below industry average
Results of T-Test of Returns:
VZ is a comparatively less risky than Nasdaq (IXIC)
Statistical test of Returns:
0.81
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -294.19% lower than the market/S&P 500 average
Weekly Volatility:
1.30%
Monthly Volatility:
2.90%
Yearly Volatility:
5.80%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
25.28%
-35.47%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -35.47% below long-term volatility
Weekly VaR:
-2.71%
Monthly VaR:
-6.06%
How Much Can the price of
Telecom Services
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Low (<25%)
Worst case (decline):
$36.64
This translates to price declining to:
-11%
This translates to price declining to:
-42.01%
Severe Crash Probability
-12.13%
What is Value at Risk (VaR)?
Risk Fundamentals
-26.67%
VZ is -14.40% less risky an investment compared to the market/S&P 500 & is -26.67% less risky than Nasdaq(IXIC)
VZ is -14.40% less risky an investment compared to the market/S&P 500
Beta Examination of
Telecom Services
0.335
Expected beta in 1 year's time:
0.398
Expected beta in 3 year's time:
-
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.34
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is -59.03% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.134
-0.723
Average Industry Beta:
Beta is -72.28% lower than peers
-0.590286618
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -38.44% below industry mean WACC
48.92%
Alpha provided | Alpha Analysis
Alpha provided:
-
-2.897
-10.885
Analysis of Cost of Capital of
Telecom Services
Equity cost of capital:
Alpha is -1089% below the market average
-0.378
Unlevered (without debt) cost of capital:
Equity cost of capital is -37.80% below industry mean WACC
Before-tax cost of debt:
2.18%
After-tax cost of debt:
1.76%
Overall debt rating:
1.39%
Weighted average cost of capital (WACC):
1.76%
-38.44%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $50.66
Revenue growth rate per share of (3Y):
Price to sales ratio is -79.35% below the industry mean
-99.54%
EPS:
Twenty-One Billion Five Hundred Eighty-Six Million One Hundred Seventy Thousand One Hundred Sixty Dollars
Expected Annual growth rate of EPS (3Y):
-
-81.77%
Free cash flow (FCF) per share:
Price to book ratio is 52.43% above the industry mean
-
-1.413464379
Debt per share
Debt repayment rate in last quarter: 4.80%
EBITDA per share
Each employee generates 16% more EBITDA than industry average revenue per employee
Valuation Analysis Today of
Telecom Services
P/E Ratio:
Sustainable growth rate is 48.92% above industry average
P/E Ratio of Competitors/Peers:
8.29
-0.718911536
151.6718809
-0.727701669
$2.43
Share value as per dividend discount (DDM) model: $92.39
P/S (Price to Sales ratio):
$31.98
-0.793525706
P/B (Price to book value ratio):
Price to sales ratio is -79.35% below the industry mean
-
-
Net income growth rate (3Y):
Annual revenue growth rate is -99.54% below industry average
-89.76%
Dividend Analysis
Net income growth rate is -89.76% lower than the industry average net income growth rate
Dividend payout rate: 12.40%
$0.64
Previous Dividend: $0.64
Previous adjusted dividend: $0.64
Previous Dividend: $2.55
Expected next dividend best case: $0.65
Expected next dividend worst case: $0.63
Average dividend payment (long-term): $0.63
Average dividend increase/decrease (growth rate) % per period: 0.40%
Expected next dividend payment date: 08/01/2022
Expected next dividend record date: 07/07/2022
Expected next dividend declaration date: 30/05/2022
Previous dividend payment date: 05/02/2022
Previous dividend record date: 04/08/2022
Dividend History:
Previous dividend declaration date: 28/02/2022
2022-01-07--$0.64
2021-07-08--$0.63
2022-04-07--$0.64
2021-10-07--$0.64
2021-04-08--$0.63
-1.119980892
In-depth Debt & Leverage Analysis
Debt to equity ratio:
213.10%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 10.1 years
Debt to assets ratio:
48.81%
Net debt to assets ratio:
194.47%
-41.74%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -41.74% below industry average
8.51
Looking forward:
Debt growth rate:
1.8x
-99.48%
4.80%
Analysis of Key Statistics
Correlation of price movement with the market:
16.65670734
Statistical significance of correlation:
-0.27%
Average Correlation of the industry with the market:
0.537
16.39%
R Squared (percentage of price movement explained by movement of the market):
0.537
Correlation of price movement with Nasdaq (^IXIC):
0.288
Covariance of price movement with the market:
0.01
Kurtosis
0.007
6.792
Skewness of returns:
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
0.188
Fundamental Analysis & Dupont Analysis of
Telecom Services
Gross Profit Margin Ratio:
77.17B
Operating Profit Margin Ratio:
Net profit margin is 409.12% higher than the industry
672.58%
Net Profit Margin Ratio:
77.17B
Effective Tax Rate:
-
-0.294354604
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -3310.75% lower than the industry
-765.34%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is 672.58% higher than the industry
-3310.75%
Financial Leverage:
Interest coverage ratio is 850.69% more than industry average
Current Ratio:
Return on equity (ROE) is -765.34% lower than the industry
-0.526992113
Cash Conversion Cycle (days):
$38.79
-0.010739668
Current ratio is -52.70% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -141.35% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -1.07% below industry average
0.127309787
EBITDA generated per employee:
Each employee generates 13% more revenue than industry average revenue per employee
0.158363244
Profit generated per employee:
$11.27
74%
Free cash flow (FCF) generated per employee:
Each employee generates 74% more net income/profit than industry average revenue per employee
-1.122808804
Assets/Capital per employee
Each employee generates -112% less free cash flow than industry average revenue per employee
-1.122808804
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Telecom Services
$95.55
AT&T INC. (XNYS:T)
SEA LIMITED (XNYS:SE)
SNAP INC. (XNYS:SNAP)
America Mobile (XNYS:AMOV)
RELX PLC (XNYS:RELX)
ROBLOX CORPORATION (XNYS:RBLX)
BCE Inc (XNYS:BCE)
DOORDASH, INC. (XNYS:DASH)
Current Analyst Ratings
$5.14
Strong buy�8%
Buy�25%
Hold�100%
Sell�0%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
134.30B
57.13B
230%
-
-
28.43B
-
16.27B
101.83B
43.00M
3.17B
16.27B
141%
6.47B
- 4049000.00K
85%
6.47B
Statement of Cash Flow
Date:
Period:
4.71B
Differed Income Tax :
4.24B
Stock Based Compensation :
627.00M
Change in Working Capital :
-
Accounts Receivables:
- 3492000.00K
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
739.00M
Investments in PP&E:
6.82B
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
1.66B
-
1.66B
23.62B
3.66B
6.65B
35.58B
127.34B
28.63B
159.52B
1.07B
-
13.58B
330.14B
-
365.72B
-
17.27B
-
-
29.32B
46.59B
162.89B
29.72B
233.96B
-
280.54B
429.00M
73.89B
- 906000.0K
Value
44.70B
10.35B
83.76B
364.30B
-
180.16B
-
-
- 7995000.00K
- 7995000.00K
- 8206000.00K
-
-
- 2654000.00K
11.11B
245.00M
-
- 929000.00K
3.23B
4.16B
6.82B
- 7659000.00K
Our Proprietary Portfolio Rating
Our Rating:
-5.836207546
Price Forecast/Expected Price in Next 5 Years of
Telecom Services
2023
2024
2025
2026
2027
87.40170848
$42.44
$89.37
$91.39
$93.45