Verizon Finanacial Essay example

10162 Words Nov 7th, 2014 41 Pages
Verizon Communications Inc. NYSE: VZ

Student Investment Fund Stock Report
Analysts: Xi Cheng, Tanner McAndrew, Luke Thompson, and Daniel Wadsworth Recommendation: Buy Market Cap: $86.2 B Recent Price: $32.69(12/1/2009) Target Price: $47.11 Industry: Telecom Services Sector: Technology

HIGHLIGHTS  VZs subsidiary (Verizon Wireless) is the world’s largest wireless service provide  VZ is expanding its presence in wireline services through an advance fiber optics network service called FiOS  VZ has experienced growth in revenue over the past five years and is on pace for an 11% increase in 2009  VZ has a consistently increased its dividend payout  There is large potential growth and development in the Telecom Industry  VZ has
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It operates a fiber-to-the-premises (FTTP) network under the FiOS service mark that offers bandwidth, and designed to handle future broadband and video applications. As of December 31, 2008, this segment’s wireline network included approximately 36,161,000 wireline access lines, 8,673,000 broadband connections, and 1,918,000 FiOS TV customers. The Domestic Wireless segment offers in wireless voice and data products, and other value-added services, as well as sells equipment. This segment serves approximately 80 million customers. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000.


FINANCIAL STATISTICS Strong and stable financial condition beyond major competitors  Value Added Spread: ROIC over WACC  Dividend Yield of 6.2%  Relatively Safe Piotroski Scorecard  Discounted cash flow analysis suggests the stock is undervalued by as much as 37%  Most competitors are overvalued or value destroyers  Low correlation with other stocks in the Student Investment Fund

Student Investment Fund:


Business Segments
Domestic Wireless (51% of 2008 sales revenue). VZ operates in the United States through Verizon Wireless, a joint venture between VZ and Vodafone Group PLC. The firm provides wireless voice and data services to the largest customer base in the United States. In its advertising, VZ claims to have the most reliable and largest network, covering 99 of

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