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
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.