Stock In Focus – TAM Stock Screener – Verizon Communications Inc (VZ)
Thursday, October 13, 2022 · Johnny Hopkins
As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Verizon Communications Inc (VZ)
Verizon is primarily a wireless business (nearly 80% of revenue and nearly all operating income). It serves about 93 million postpaid and 23 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services.
A quick look at the share price history (below) over the past twelve months shows that the price is down 30.27%. Here’s why the company is undervalued.
Summary
Market Cap: $159 Billion
Enterprise Value: $333 Billion
Operating Earnings
Operating Earnings: $31 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 10.60
Free Cash Flow (TTM)
Free Cash Flow: $10.11 Billion
FCF/EV Yield %
FCF/EV Yield: 6.36%
Shareholder Yield %:
Shareholder Yield: 6.70%
Other Indicators
Piotroski F-Score: 3
Altman Z-Score: 1.339
ROA (5 Year Avge%): 8