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Verizon Communications (LIM:VZ) Piotroski F-Score : 5 (As of Dec. 14, 2024)


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What is Verizon Communications Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Verizon Communications has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Verizon Communications's Piotroski F-Score or its related term are showing as below:

LIM:VZ' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 5

During the past 13 years, the highest Piotroski F-Score of Verizon Communications was 7. The lowest was 3. And the median was 5.


Verizon Communications Piotroski F-Score Historical Data

The historical data trend for Verizon Communications's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Verizon Communications Piotroski F-Score Chart

Verizon Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 4.00 4.00 5.00

Verizon Communications Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 5.00 5.00

Competitive Comparison of Verizon Communications's Piotroski F-Score

For the Telecom Services subindustry, Verizon Communications's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Verizon Communications's Piotroski F-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Verizon Communications's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -2705 + 4602 + 4593 + 3306 = $9,796 Mil.
Cash Flow from Operations was 8677 + 7084 + 9485 + 9911 = $35,157 Mil.
Revenue was 35130 + 32981 + 32796 + 33330 = $134,237 Mil.
Gross Profit was 19948 + 20109 + 20325 + 20090 = $80,472 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(384830 + 380255 + 380158 + 379146 + 381164) / 5 = $381110.6 Mil.
Total Assets at the begining of this year (Sep23) was $384,830 Mil.
Long-Term Debt & Capital Lease Obligation was $148,125 Mil.
Total Current Assets was $40,641 Mil.
Total Current Liabilities was $61,816 Mil.
Net Income was 6577 + 4909 + 4648 + 4762 = $20,896 Mil.

Revenue was 35251 + 32912 + 32596 + 33336 = $134,095 Mil.
Gross Profit was 19489 + 19408 + 19832 + 19899 = $78,628 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(375090 + 379680 + 377716 + 379955 + 384830) / 5 = $379454.2 Mil.
Total Assets at the begining of last year (Sep22) was $375,090 Mil.
Long-Term Debt & Capital Lease Obligation was $155,214 Mil.
Total Current Assets was $38,119 Mil.
Total Current Liabilities was $55,677 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Verizon Communications's current Net Income (TTM) was 9,796. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Verizon Communications's current Cash Flow from Operations (TTM) was 35,157. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=9796/384830
=0.0254554

ROA (Last Year)=Net Income/Total Assets (Sep22)
=20896/375090
=0.0557093

Verizon Communications's return on assets of this year was 0.0254554. Verizon Communications's return on assets of last year was 0.0557093. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Verizon Communications's current Net Income (TTM) was 9,796. Verizon Communications's current Cash Flow from Operations (TTM) was 35,157. ==> 35,157 > 9,796 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=148125/381110.6
=0.3886667

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=155214/379454.2
=0.40904541

Verizon Communications's gearing of this year was 0.3886667. Verizon Communications's gearing of last year was 0.40904541. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=40641/61816
=0.65745115

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=38119/55677
=0.68464537

Verizon Communications's current ratio of this year was 0.65745115. Verizon Communications's current ratio of last year was 0.68464537. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Verizon Communications's number of shares in issue this year was 4225. Verizon Communications's number of shares in issue last year was 4216. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=80472/134237
=0.59947704

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=78628/134095
=0.58636042

Verizon Communications's gross margin of this year was 0.59947704. Verizon Communications's gross margin of last year was 0.58636042. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=134237/384830
=0.34882156

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=134095/375090
=0.35750087

Verizon Communications's asset turnover of this year was 0.34882156. Verizon Communications's asset turnover of last year was 0.35750087. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+1+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Verizon Communications has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Verizon Communications  (LIM:VZ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Verizon Communications Piotroski F-Score Related Terms

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Verizon Communications Business Description

Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 30 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks. Verizon agreed to acquire Frontier Communications in September 2024.