Verizon CommunicationsCHIX:BACD 50 ROA % is 4.94% as of Mar. 2026, which is 15% below its 10-year median of 5.78. GuruFocus rates CHIX:BACD with a GF Score™ of 50/100 and a GF Value™ of €37.86 (Fairly Valued). The stock has 3 warning signs investors should review. Among 372 Telecommunication Services companies, Verizon Communications ranks better than 61.56% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Verizon Communications's annualizedNet Income for the quarter that ended in Mar. 2026 was €17,456 Mil.
Verizon Communications's average Total Assets over the quarter that ended in Mar. 2026 was €353,352 Mil. Therefore, Verizon Communications's annualized ROA % for the quarter that ended in Mar. 2026 was 4.94%.
The historical rank and industry rank for Verizon Communications's ROA % or its related term are showing as below:
CHIX:BACd'
s ROA % Range Over the Past 10 Years
Min: 3.06 Med: 5.78 Max: 12.01
Current: 4.39
During the past 13 years, Verizon Communications's highest ROA % was 12.01%. The lowest was 3.06%. And the median was 5.78%.
CHIX:BACd's ROA % is ranked better than 61.56% of 372
companies
in the Telecommunication Services industry
Industry Median: 2.745
vs CHIX:BACd: 4.39
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Telecom Services subindustry, Verizon Communications's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's ROA % distribution charts can be found below:
* The bar in red indicates where Verizon Communications's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Verizon Communications (CHIX:BACD) has a ROA % of 4.94% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Verizon Communications and its competitors. This is 15% below median its historical median of 5.78. Over the past decade, Verizon Communications' ROA % has ranged from 3.06 to 12.01. According to the industry distribution chart, Verizon Communications ranks #143 out of 372 companies in the Telecommunication Services industry, placing it in the top 38.4%.
Is Verizon Communications' ROA % too high?
Verizon Communications' current ROA % of 4.94% is 15% below median its 10-year median of 5.78. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 12.01. The Telecommunication Services industry median ROA % is 2.75. Verizon Communications' value of 4.94% is 80% above this industry median. Based on the distribution chart, Verizon Communications ranks #143 out of 372 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Verizon Communications has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' ROA % compare to TMUS and T?
According to the Telecommunication Services industry distribution chart, Verizon Communications ranks #143 out of 372 companies for ROA %. This puts Verizon Communications in the upper half of its industry. The industry median ROA % is 2.75. Verizon Communications' value of 4.94% is 80% above this benchmark. Historically, Verizon Communications' own ROA % has ranged from 3.06 to 12.01 over the past decade. While the company's 10-year median is 5.78 vs. the industry median of 2.75, Verizon Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.75, based on 372 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verizon Communications's current ROA % of 4.94% is 80% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Verizon Communications and its competitors. For the Telecommunication Services industry, the median ROA % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verizon Communications's current ROA % is 4.94%, which is 15% below median its own 10-year median of 5.78. 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 Fairly Valued. The stock's GF Value™ is €37.86, compared to a current price of €40.70 — trading 7.5% above its estimated fair value. The current ROA % is 4.94%, which is 15% below median its 10-year median of 5.78 and 80% above the Telecommunication Services industry median of 2.75. Verizon Communications' overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Verizon Communications (CHIX:BACD), the current ROA % is 4.94% as of Mar. 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 €40.70 is trading 7.5% above its estimated GF Value™ of €37.86.
GuruFocus considers Verizon Communications to be Fairly Valued.
Key valuation signals for CHIX:BACD:
ROA %: 4.94% (15% below median its 10-year median of 5.78)
GF Value™: €37.86 vs. price of €40.70 (7.5% above fair value)
Industry Position: 80% above the Telecommunication Services median (#143 of 372)
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.
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