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Strategies & Market Trends : Value Investing
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From: IndependentValue2/18/2014 5:12:53 PM
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VZ - Anyone else find this company interesting? It's currently trading at c. 8x - 9x EV/FCF, which is impressive considering the recent $49 billion issuance of debt to acquire VOD's 45% in Verizon Wireless. My initial observations that prompt me to think its worth further consideration are:

1. Modest multiple on EV/FCF of 8x - 9x
2. Competitive advantage in significant barriers to entry, operating in a consolidated industry with T
3. Consistent, "sticky" revenue and fcf generation, therefore a predictable business
4. Respectable (although not stellar) ROIC
5. Dividend of 4.6%
6. The stock price is down over the last quarter, and only modestly up over the last 12 months i.e. it has not been swept up by the general exuberance in the market over the last year or so

Chief risks as I see it are around capex (network upgrade, spectrum costs etc.) over the longer term.

Any thoughts?
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