February 25, 2019

VZ – Market expectations are for Uniform ROA to remain flat at current levels, but management is confident about growth and debt structure


  • Verizon Communications, Inc. (VZ:USA)¬†currently trades near recent averages relative to UAFRS-based (Uniform) Earnings with a 16.9x Uniform P/E, implying muted expectations for the firm. However, management is confident about customer additions, leverage ratios, and operating revenue growth
  • Specifically, management is confident about the addition of new customers at higher price points and in the improvement of their net-debt-to-adjusted-EBITDA ratio. Additionally, they are confident in their adjusted operating revenue growth, and are confident that the declines in prepaid phones only occurred for 3G and basic models
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