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Verizon Communications Piotroski F-Score

: 4 (As of Today)
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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 4 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:

VZ' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of Verizon Communications was 8. The lowest was 2. And the median was 6.


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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 6.00 5.00 4.00

Verizon Communications Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 4.00 4.00 4.00

Competitive Comparison

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 Piotroski F-Score Distribution

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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 6407 + 4613 + 4580 + 5199 = $20,799 Mil.
Cash Flow from Operations was 10724 + 8377 + 6821 + 10844 = $36,766 Mil.
Revenue was 32915 + 34067 + 33554 + 33789 = $134,325 Mil.
Gross Profit was 19387 + 19071 + 19204 + 19369 = $77,031 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(349190 + 353457 + 366596 + 365716 + 370147) / 5 = $361021.2 Mil.
Total Assets at the begining of this year (Jun21) was $349,190 Mil.
Long-Term Debt & Capital Lease Obligation was $158,781 Mil.
Total Current Assets was $37,499 Mil.
Total Current Liabilities was $49,224 Mil.
Net Income was 4357 + 4588 + 5245 + 5800 = $19,990 Mil.

Revenue was 31543 + 34692 + 32867 + 33764 = $132,866 Mil.
Gross Profit was 19209 + 19870 + 19345 + 19509 = $77,933 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(293259 + 296994 + 316481 + 345573 + 349190) / 5 = $320299.4 Mil.
Total Assets at the begining of last year (Jun20) was $293,259 Mil.
Long-Term Debt & Capital Lease Obligation was $168,254 Mil.
Total Current Assets was $35,626 Mil.
Total Current Liabilities was $40,078 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 20,799. ==> 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 36,766. ==> 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 (Jun21)
=20799/349190
=0.05956356

ROA (Last Year)=Net Income/Total Assets (Jun20)
=19990/293259
=0.068165

Verizon Communications's return on assets of this year was 0.05956356. Verizon Communications's return on assets of last year was 0.068165. ==> 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 20,799. Verizon Communications's current Cash Flow from Operations (TTM) was 36,766. ==> 36,766 > 20,799 ==> 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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=158781/361021.2
=0.43981074

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=168254/320299.4
=0.52530226

Verizon Communications's gearing of this year was 0.43981074. Verizon Communications's gearing of last year was 0.52530226. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=37499/49224
=0.76180319

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=35626/40078
=0.88891661

Verizon Communications's current ratio of this year was 0.76180319. Verizon Communications's current ratio of last year was 0.88891661. ==> 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 4202. Verizon Communications's number of shares in issue last year was 4143. ==> 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
=77031/134325
=0.57346734

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=77933/132866
=0.58655337

Verizon Communications's gross margin of this year was 0.57346734. Verizon Communications's gross margin of last year was 0.58655337. ==> Last year's gross margin is higher ==> Score 0.

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 (Jun21)
=134325/349190
=0.38467596

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=132866/293259
=0.45306708

Verizon Communications's asset turnover of this year was 0.38467596. Verizon Communications's asset turnover of last year was 0.45306708. ==> 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+0+0
=4

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

Verizon Communications has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Verizon Communications  (NYSE: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

Thank you for viewing the detailed overview of Verizon Communications's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Verizon Communications Business Description

Verizon Communications logo
Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Verizon is now primarily a wireless business (more than 70% of revenue and nearly all operating income). It serves about 91 million postpaid and 4 million prepaid phone customers and connects another 25 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier. The firm has agreed to acquire Tracfone, a wireless reseller that serves about 20 million prepaid customers in the U.S., from America Movil. Fixed-line telecom operations include local networks (12% of revenue) in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services (10%). Verizon Media Group, the online media and advertising firm formed with the acquisitions of AOL and Yahoo, provides the remainder of revenue.
Executives
Brouillette Manon officer: EVP and Group CEO-VZ Consumer 40 AVENUE SPRINGGROVE MONTREAL Z4 H3C 4M8
Hammock Samantha officer: EVP & Chief HR Officer 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Tome Carol B director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Narasimhan Laxman director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Slater Rodney E director
Bertolini Mark T director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Otis Clarence Jr director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Archambeau Shellye L director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR NEW YORK NY 10036
Austin Roxanne S director 200 N SEPULVEDA BLVD PO BOX 956 MS ES/001/A102 EL SEGUNDO CA 90245
Healey Melanie director VERIZON COMMUNICATIONS INC. 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Weaver Gregory G. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Schulman Daniel H director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Qureshi Rima officer: EVP & Chief Strategy Officer 2000 PURCHASE STREET PURCHASE NY 10577
Gowrappan Kumara Guru officer: EVP and Group CEO-VZ Media 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Dunne Ronan officer: EVP and Group CEO-VZ Consumer 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036

Verizon Communications Headlines

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