NYSE · Communication Services

Verizon Communications Inc.

VZ · Telecom Services

$45.37

▼ -0.47 (-1.03%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 60.3%

Operating Margin 23.9%

Net Income Margin 14.6%

Fin. Health

F⤢

Years to Pay Off Debt 38.8 yrs

Working Capital vs Long-Term Debt -$169.4B

Working Capital -$25.2B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.83x

Cash Flow

C⤢

Free Cash Flow $3.7B

CapEx % of Net Income 84.9%

Owner Earnings $14.2B

Profitability

Gross Profit Margin 60.3%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 23.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 14.6%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 38.8 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$169.4B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$25.2B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $3.7B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 84.9%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $14.2B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Verizon Communications Inc.

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smartwatches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA and wireline broadband, advanced communication services, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company distributes its products and services through direct channels, company-operated stores, digital and omnichannel platforms, indirect agents, business solution resellers, and national retailers. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

Market Data

Market Cap $189.4B

Enterprise Value $389.0B

P/E (TTM) 11.07

Dividend Yield 6.03%

Exchange NYSE

Key Margins

Gross Profit 60.3%

Operating Margin 23.9%

Net Margin 14.6%

Company Info

Sector Communication Services

Industry Telecom Services

Employees 99600

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Verizon Communications Inc. at $45.37.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $45.37, the stock trades at a 76% premium to its Graham Number of $25.85. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	60.3%▲	54.7%
Operating Margin %	23.9%▲	13.8%
Net Income %	14.6%▲	6.4%
Diluted EPS	1.20▲	0.55

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$417.9B	$404.3B	N/A
Total Debt	$195.9B▲	$181.6B•	N/A
Working Capital	-$25.2B▼	-$5.4B•	N/A
Years to Pay Debt	38.82	77.56	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$3.7B▼	$4.3B•	N/A
Owner Earnings	$14.2B	$11.7B	N/A
CapEx % of Net Income	84.9%	207.4%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	22,895	19,275
Tax Rate For Calcs	0	0
Normalized EBITDA	13,521,000	9,245,000
Total Unusual Items	95,000	96,000
Total Unusual Items Excluding Goodwill	95,000	96,000
Net Income From Continuing Operation Net Minority Interest	5,045,000	2,342,000
Reconciled Depreciation	4,892,000	4,519,000
Reconciled Cost Of Revenue	13,673,000	16,478,000
EBITDA	13,616,000	9,341,000
EBIT	8,724,000	4,822,000
Net Interest Income	-1,793,000	-1,616,000
Interest Expense	1,940,000	1,759,000
Interest Income	147,000	143,000
Normalized Income	4,972,895	2,265,275
Net Income From Continuing And Discontinued Operation	5,045,000	2,342,000
Total Expenses	26,198,000	31,377,000
Total Operating Income As Reported	8,242,000	5,004,000
Diluted Average Shares	4,210,000	4,236,000
Basic Average Shares	4,205,000	4,230,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	5,045,000	2,342,000
Net Income Common Stockholders	5,045,000	2,342,000
Net Income	5,045,000	2,342,000
Minority Interests	-101,000	-106,000
Net Income Including Noncontrolling Interests	5,146,000	2,448,000
Net Income Continuous Operations	5,146,000	2,448,000
Tax Provision	1,638,000	615,000
Pretax Income	6,784,000	3,063,000
Other Income Expense	335,000	-325,000
Other Non Operating Income Expenses	235,000	-424,000
Special Income Charges	95,000	96,000
Other Special Charges	-95,000	-96,000
Earnings From Equity Interest	5,000	3,000
Net Non Operating Interest Income Expense	-1,793,000	-1,616,000
Interest Expense Non Operating	1,940,000	1,759,000
Interest Income Non Operating	147,000	143,000
Operating Income	8,242,000	5,004,000
Operating Expense	12,525,000	14,899,000
Depreciation Amortization Depletion Income Statement	4,892,000	4,519,000
Depreciation And Amortization In Income Statement	4,892,000	4,519,000
Selling General And Administration	7,633,000	10,380,000
Gross Profit	20,767,000	19,903,000
Cost Of Revenue	13,673,000	16,478,000
Total Revenue	34,440,000	36,381,000
Operating Revenue	34,440,000	36,381,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	115,875	74,258
Ordinary Shares Number	4,175,559	4,217,175
Share Issued	4,291,434	4,291,434
Net Debt	164,094,000	139,102,000
Total Debt	195,872,000	181,643,000
Tangible Book Value	-97,200,000	-85,878,000
Invested Capital	275,769,000	262,610,000
Working Capital	-25,157,000	-5,448,000
Net Tangible Assets	-97,200,000	-85,878,000
Capital Lease Obligations	23,412,000	23,493,000
Common Stock Equity	103,309,000	104,460,000
Total Capitalization	247,540,000	243,992,000
Total Equity Gross Minority Interest	104,622,000	105,741,000
Minority Interest	1,313,000	1,281,000
Stockholders Equity	103,309,000	104,460,000
Other Equity Interest	500,000	897,000
Gains Losses Not Affecting Retained Earnings	-2,372,000	-1,727,000
Other Equity Adjustments	-2,372,000	-1,727,000
Treasury Stock	5,335,000	3,255,000
Retained Earnings	96,824,000	94,744,000
Additional Paid In Capital	13,263,000	13,372,000
Capital Stock	429,000	429,000
Common Stock	429,000	429,000
Total Liabilities Net Minority Interest	313,260,000	298,517,000
Total Non Current Liabilities Net Minority Interest	243,380,000	236,147,000
Other Non Current Liabilities	19,122,000	17,848,000
Employee Benefits	12,023,000	11,099,000
Non Current Deferred Liabilities	49,312,000	48,717,000
Non Current Deferred Taxes Liabilities	49,312,000	48,717,000
Long Term Debt And Capital Lease Obligation	162,923,000	158,483,000
Long Term Capital Lease Obligation	18,692,000	18,951,000
Long Term Debt	144,231,000	139,532,000
Current Liabilities	69,880,000	62,370,000
Other Current Liabilities	14,999,000	3,716,000
Current Deferred Liabilities		7,576,000	7,492,000
Current Deferred Revenue		7,576,000	7,492,000
Current Debt And Capital Lease Obligation	32,949,000	23,160,000
Current Capital Lease Obligation	4,720,000	4,542,000
Current Debt	28,229,000	18,618,000
Other Current Borrowings	28,229,000	18,618,000
Payables And Accrued Expenses	21,932,000	27,918,000
Current Accrued Expenses		10,968,000	11,047,000
Interest Payable		1,602,000	1,553,000
Payables		16,950,000	15,205,000
Dividends Payable		2,937,000	2,878,000
Total Tax Payable		1,859,000	1,902,000
Accounts Payable		12,154,000	10,425,000
Total Assets	417,882,000	404,258,000
Total Non Current Assets	373,159,000	347,336,000
Other Non Current Assets	22,547,000	23,248,000
Investments And Advances	730,000	785,000
Long Term Equity Investment	730,000	785,000
Goodwill And Other Intangible Assets	200,509,000	190,338,000
Other Intangible Assets	169,881,000	167,497,000
Goodwill	30,628,000	22,841,000
Net PPE	149,373,000	132,965,000
Accumulated Depreciation	-231,678,000	-228,524,000
Gross PPE	381,051,000	361,489,000
Leases		11,099,000	10,562,000
Construction In Progress		8,493,000	9,424,000
Other Properties	381,051,000	109,719,000
Machinery Furniture Equipment		190,563,000	188,740,000
Buildings And Improvements		40,872,000	39,130,000
Land And Improvements		743,000	740,000
Current Assets	44,723,000	56,922,000
Other Current Assets	7,382,000	1,806,000
Hedging Assets Current		1,074,000	2,118,000
Current Deferred Assets		3,315,000	2,932,000
Restricted Cash		297,000	319,000
Prepaid Assets		1,844,000	811,000
Inventory	2,320,000	2,441,000
Receivables	26,655,000	27,097,000
Accounts Receivable	26,655,000	27,097,000
Allowance For Doubtful Accounts Receivable	-1,311,000	-1,250,000
Gross Accounts Receivable	27,966,000	28,347,000
Cash Cash Equivalents And Short Term Investments	8,366,000	19,048,000
Cash And Cash Equivalents	8,366,000	19,048,000

Cash Flow

	2026	2025	2024
Free Cash Flow	3,700,000	4,256,000
Repurchase Of Capital Stock	-2,500,000
Repayment Of Debt	-11,086,000	-5,823,000
Issuance Of Debt	12,129,000	16,314,000
Capital Expenditure	-4,284,000	-4,858,000
End Cash Position	8,632,000	19,499,000
Beginning Cash Position	19,499,000	8,156,000
Changes In Cash	-10,867,000	11,343,000
Financing Cash Flow	-5,278,000	7,209,000
Cash Flow From Continuing Financing Activities	-5,278,000	7,209,000
Net Other Financing Charges	-911,000	-370,000
Cash Dividends Paid	-2,910,000	-2,912,000
Common Stock Dividend Paid	-2,910,000	-2,912,000
Net Common Stock Issuance	-2,500,000
Common Stock Payments	-2,500,000
Net Issuance Payments Of Debt	1,043,000	10,491,000
Net Short Term Debt Issuance			0
Net Long Term Debt Issuance	1,043,000	10,491,000
Long Term Debt Payments	-11,086,000	-5,823,000
Long Term Debt Issuance	12,129,000	16,314,000
Investing Cash Flow	-13,573,000	-4,980,000
Cash Flow From Continuing Investing Activities	-13,573,000	-4,980,000
Net Other Investing Changes	191,000	-122,000
Net Investment Purchase And Sale			-380,000
Net Business Purchase And Sale	-9,480,000
Net Intangibles Purchase And Sale	-83,000	-110,000
Purchase Of Intangibles	-83,000	-110,000
Capital Expenditure Reported	-4,201,000	-4,748,000
Operating Cash Flow	7,984,000	9,114,000
Cash Flow From Continuing Operating Activities	7,984,000	9,114,000
Change In Working Capital	-3,082,000	1,734,000
Other Non Cash Items	-142,000	-1,436,000
Provisionand Write Offof Assets	581,000	736,000
Deferred Tax	703,000	531,000
Deferred Income Tax	703,000	531,000
Depreciation Amortization Depletion	4,892,000	4,519,000
Depreciation And Amortization	4,892,000	4,519,000
Operating Gains Losses	-114,000	582,000
Pension And Employee Benefit Expense	-117,000	581,000
Earnings Losses From Equity Investments	3,000	1,000
Net Income From Continuing Operations	5,146,000	2,448,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $33.5B ▲ $34.4B +2.9%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 61.0% ▲ 60.3% -0.7pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 24.6% ▲ 23.9% -0.7pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 14.6% ▲ 14.6% +0.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$34.4B/qtr (≈$137.8B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.64x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$3.7B

vs Positive

Operating Cash Flow

$8.0B

Latest quarter · Buffett's cash reality check

ROIC

1.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.8x

Net Assets: $104.6B

Asset Context — Telecom Services

Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.

Peers & Industry Comparison

Telecom Services — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
VZ	$45.37	$189.4B	11.07	60.3%	14.6%	$34.4B
T AT&T Inc.	$22.01	$152.9B	7.2	59.4%	16.9%	$126.5B
TMUS T-Mobile US, Inc.	$181.67	$196.6B	19.3	63.3%	11.6%	$90.5B
CMCSA Comcast Corporation	$22.43	$80.1B	4.4	70.1%	15.0%	$125.3B
CHTR Charter Communications, Inc.	$126.23	$19.8B	3.4	55.3%	9.0%	$54.6B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.04%

Low — management has little skin in the game

Return on Equity (ROE)

4.9%

Weak — poor returns on equity

Return on Assets (ROA)

1.2%

Poor — assets are not generating adequate returns

Debt Trend YoY

+7.8% YoY

Debt is roughly stable

Leadership Team

Daniel Schulman

Director & CEO

Age 67

Pay: $2,890,221

0.057% of net income

Anthony Skiadas CPA

Executive VP & CFO

Age 56

Pay: $3,006,860

0.060% of net income

Kyle Malady

Executive VP & CEO of Verizon Business Group

Age 57

Pay: $3,007,531

0.060% of net income

Colleen Ostrowski

Senior Vice President of Investor Relations

Age 51

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.81%	368,027,599
Vanguard Capital Management LLC	6.23%	260,184,535
State Street Corporation	5.15%	214,853,728
Charles Schwab Investment Management, Inc.	2.70%	112,936,510
Geode Capital Management, LLC	2.54%	106,208,367
Vanguard Portfolio Management LLC	1.84%	76,841,569
Morgan Stanley	1.77%	74,068,170
Bank of America Corporation	1.49%	62,101,021

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.22

Low volatility — more stable than the market

Short Interest

2.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.92x

Moderate leverage

Current Ratio

0.64x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $38.39 Current: $45.37 High: $51.68

Currently at 53% of 52-week range

Verizon Communications Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis