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Verizon Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Verizon Communications's Interest Coverage for the quarter that ended in Jun. 2026 was 3.62.
Verizon Communications's debt to revenue ratio for the quarter that ended in Jun. 2026 was 1.38.
As of today, Verizon Communications's Altman Z-Score is 1.24.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Verizon Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Verizon Communications Financial Strength Related Terms
CHIX:BACD vs TMUS, T, CMCSA: Financial Strength Comparison
For the Telecom Services subindustry, Verizon Communications's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Financial Strength distribution charts can be found below:
* The bar in red indicates where Verizon Communications's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Verizon Communications has a Z-score of 1.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.24 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Verizon Communications (CHIX:BACD) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Verizon Communications and its competitors. This is near median its historical median of 3.00. Over the past decade, Verizon Communications' Financial Strength has ranged from 3.00 to 4.00.
Is Verizon Communications' Financial Strength too high?
Verizon Communications' current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 4.00. Overall, Verizon Communications has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' Financial Strength compare to TMUS and T?
Verizon Communications' Financial Strength of 3 can be compared against companies in the Telecommunication Services industry. Historically, Verizon Communications' own Financial Strength has ranged from 3.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Telecommunication Services company?
A good Financial Strength depends on the Telecommunication Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Verizon Communications and its competitors. Verizon Communications's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verizon Communications stock overvalued right now?
Based on GuruFocus' analysis, Verizon Communications (CHIX:BACD) is currently considered Modestly Overvalued. The stock's GF Value™ is €35.52, compared to a current price of €41.10 — trading 15.7% above its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Verizon Communications' overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Verizon Communications (CHIX:BACD), the current Financial Strength is 3 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Verizon Communications (CHIX:BACD) Overvalued in 2026?
Based on GuruFocus' analysis, Verizon Communications stock appears to be overvalued.
The current stock price of €41.10 is trading 15.7% above its estimated GF Value™ of €35.52.
GuruFocus considers Verizon Communications to be Modestly Overvalued.
Key valuation signals for CHIX:BACD:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: €35.52 vs. price of €41.10 (15.7% above fair value)
No single metric tells the full story. See the CHIX:BACD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 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 that reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. Verizon closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber. These networks serve about 11 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, using a mix of its own and other networks.
64GF Score
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