Verizon Communications Inc. VZ

Name: VZ Crucible Score
Creator: Kaladin Capital Intelligence

Communication ServicesTelecommunications ServicesNYSE📅 Scored March 7, 2026

Price at analysis: $50.50

Crucible Score

62.4

C+

Quality × Value Composite

KQI — Quality

63.8

B-

Fundamental Quality Index

KVI — Value

60.6

C+

Valuation Attractiveness Index

Crucible Verdict — VZ

Verizon Communications Inc. (VZ) presents a tale of two halves: strong defensive qualities with a 73 moat durability score and solid market position, but hampered by anemic 41 growth prospects that drag down its overall C+ rating. The stock trades at a modest 7% discount to fair value, offering limited upside potential. VZ remains a yield play for income-focused investors rather than a growth catalyst.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

69.6

Growth Profile

40.9

Moat Durability⚠

72.7

Management Effectiveness⚠

57.6

Diversification & Resilience

71.8

Market Position

72.0

Weakest dimension: Growth Profile (40.9)

◆ KVI Value Dimensions

DCF Margin of Safety

61.6

FCF Yield & Cash Returns

74.5

Relative Valuation

95.0

Growth-Adjusted Value

22.0

Historical Valuation

16.8

Macro Context

95.0

◆ DCF Valuation Scenarios

Bear Case

$38.72

Base Case

$54.18

Bull Case

$74.63

Price at Analysis

$50.50

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$38.72	0.5%	20.0%	6.2%
🟢 Base	$54.18	1.5%	22.0%	5.8%
🟢 Bull	$74.63	2.5%	24.5%	5.4%

Key Assumptions: VZ is a mature telecom with near-zero historical revenue growth (~0.7% CAGR over 5 years) and stable operating margins around 21-24%. WACC is low (5.4-6.2%) reflecting VZ's very low beta of 0.28 and heavy debt load (~$175B) providing tax shield; cost of debt estimated at ~4.8% with D/E leverage keeping WACC well below equity cost. Capex intensity averaged ~13.5% of revenue with the spike year normalized; FCF conversion is strong at ~$18-20B annually, and terminal growth reflects GDP-like or sub-GDP rates appropriate for a saturated telecom market.

◆ Financial Snapshot

Profitability

Gross Margin55.7%

Operating Margin21.2%

Net Margin12.4%

ROIC6.3%

ROE31.2%

Balance Sheet

Balance SheetCR: 0.91

Cash ConversionFCF/EPS: 1.15x

Capital IntensityCapex/Rev: 12.3%

Altman Z-Score1.33 (Distress)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR0.8% CAGR

Earnings CAGR-6.1% CAGR

Growth ConsistencyCV: 2.15

Segment Breadth3/5 growing (60%)

Quarterly TrendRev↘+2%, Margin↘, WC↓, Exp↓

Earnings CredibilityTends to Beat

◆ Revenue Breakdown — FY2025

By Segment

Verizon Consumer Group78.6%

Verizon Business Group21.4%

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$48.30

Analysts Covering (Quarter)11

Avg Target (Last Year)$48.17

Analysts (Year)16

Leadership & Governance

CEOHans Vestberg · 8 years

Compensation90% performance-based

Insider ActivitySelling

Capital AllocationROIC 6.3% vs WACC 2.6%

Earnings Beat Rate74% (15/22)

◆ Company Profile

Verizon Communications Inc. , through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.

CEO

Daniel H. Schulman

Employees

99400

Headquarters

New York City, NY, US

IPO Date

November 21, 1983

Exchange

NYSE

Website

verizon.com

◆ Related Companies in Our Universe

Other Communication Services companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.