Verizon: Increasing Cash Flow Makes It A Bargain

Summary

• Verizon's revenue grew, but customer base declined; impressive $50 billion annualized EBITDA and $4 billion quarterly FCF highlight strong financials despite market challenges.
• Verizon's postpaid phone subscriptions saw business growth but consumer decline; fixed wireless access grows, but lacks AT&T's fiber business potential.
• VZ offers free phone trade-ins, satellite text messaging, and 3-year price lock to retain customers, impacting margins due to competition.
• Verizon's FCF yield is 8.5%, covering a 6.5% dividend; debt reduced by $10 billion YoY, but high interest rates remain a concern.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.