Verizon Communications Scores High in Shareholder Yield Analysis

Verizon Communications Inc (VZ) showcases strong fundamentals with a 90% rating using the Shareholder Yield Investor model, indicating robust interest among professional investors. However, with failing in the Shareholder Yield category, caution may be warranted.

Date: 11-04-2025

AI Rating: 6

Comprehensive Analysis of Verizon Communications Inc
Verizon Communications Inc (VZ) exhibits a robust performance in the Shareholder Yield Investor model, scoring 90%, which is indicative of significant interest from investors. This high rating implies strong underlying fundamentals related to shareholder returns through dividends, share buybacks, and debt reduction.

**Earnings Per Share (EPS)**: The report does not provide explicit details on EPS, which is a crucial metric for determining a company's profitability per share and assessing its capacity to return cash to shareholders.

**Net Income**: There is no mention of net income, an essential factor for evaluating profitability and financial health.

**Profit Margins**: Details pertaining to profit margins (gross, operating, net) are not included in the report, thereby limiting the analysis on how efficiently the company manages its revenue relative to expenses.

**Free Cash Flow (FCF)**: Although free cash flow offers insights into the capacity for future growth and shareholder returns, this metric is not addressed in the report.

**Return on Equity (ROE)**: ROE, which measures a company's profitability against shareholders' equity, is absent from the discussion, constraining a complete assessment of how effectively the firm utilizes shareholders' investments to generate earnings.

The report highlights various strong points, as indicated in the summary table, such as passing the tests in Net Payout Yield, Quality and Debt, Valuation, and Relative Strength. Conversely, the failure in the Shareholder Yield category raises concerns about how effectively Verizon is returning capital to investors, which could lead to a reevaluation of its attractiveness for value-oriented investors.

From an investor's perspective, while the overall positive rating might create initial interest, the lack of detail in key performance metrics such as EPS, net income, profit margins, and FCF warrant a cautious approach to investment in VZ, particularly with a holding period of 1 to 3 months.

Stocks: VZ