TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.32 USD
+0.08 (+0.65%)
12.32 USD
0 (0%)
Taking everything into account, VIV scores 5 out of 10 in our fundamental rating. VIV was compared to 38 industry peers in the Diversified Telecommunication Services industry. VIV has an average financial health and profitability rating. VIV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VIV had positive earnings in the past year.
In the past year VIV had a positive cash flow from operations.
Each year in the past 5 years VIV has been profitable.
In the past 5 years VIV always reported a positive cash flow from operatings.
1.2 Ratios
VIV's Return On Assets of 4.89% is fine compared to the rest of the industry. VIV outperforms 71.05% of its industry peers.
VIV has a better Return On Equity (8.85%) than 71.05% of its industry peers.
With an excellent Return On Invested Capital value of 7.84%, VIV belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIV is in line with the industry average of 6.52%.
The last Return On Invested Capital (7.84%) for VIV is above the 3 year average (6.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.85% | ||
| ROIC | 7.84% |
ROA(3y)4.01%
ROA(5y)4.36%
ROE(3y)7.05%
ROE(5y)7.39%
ROIC(3y)6.41%
ROIC(5y)5.75%
1.3 Margins
VIV has a Profit Margin of 10.34%. This is in the better half of the industry: VIV outperforms 73.68% of its industry peers.
VIV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 15.52%, VIV is doing good in the industry, outperforming 60.53% of the companies in the same industry.
VIV's Operating Margin has been stable in the last couple of years.
VIV has a worse Gross Margin (44.27%) than 63.16% of its industry peers.
In the last couple of years the Gross Margin of VIV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.52% | ||
| PM (TTM) | 10.34% | ||
| GM | 44.27% |
OM growth 3Y9.5%
OM growth 5Y1.09%
PM growth 3Y-11.16%
PM growth 5Y-2.54%
GM growth 3Y0.11%
GM growth 5Y-2.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VIV is destroying value.
Compared to 1 year ago, VIV has less shares outstanding
Compared to 5 years ago, VIV has more shares outstanding
VIV has a worse debt/assets ratio than last year.
2.2 Solvency
VIV has an Altman-Z score of 1.97. This is not the best score and indicates that VIV is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of VIV (1.97) is better than 81.58% of its industry peers.
The Debt to FCF ratio of VIV is 1.74, which is an excellent value as it means it would take VIV, only 1.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VIV (1.74) is better than 94.74% of its industry peers.
VIV has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, VIV belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.55
WACC14.25%
2.3 Liquidity
A Current Ratio of 1.02 indicates that VIV should not have too much problems paying its short term obligations.
VIV has a Current ratio (1.02) which is in line with its industry peers.
A Quick Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
The Quick ratio of VIV (0.96) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
VIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.55%.
VIV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.63% yearly.
VIV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.88%.
VIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.76% yearly.
EPS 1Y (TTM)-21.55%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%15.69%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.48%
3.2 Future
VIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.67% yearly.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y0.65%
EPS Next 2Y16.64%
EPS Next 3Y17.67%
EPS Next 5Y12.67%
Revenue Next Year6.85%
Revenue Next 2Y6.42%
Revenue Next 3Y6.2%
Revenue Next 5Y5.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VIV is valuated rather expensively with a Price/Earnings ratio of 17.60.
71.05% of the companies in the same industry are more expensive than VIV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.56. VIV is valued slightly cheaper when compared to this.
VIV is valuated correctly with a Price/Forward Earnings ratio of 12.45.
Based on the Price/Forward Earnings ratio, VIV is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
VIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 86.84% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VIV has a very decent profitability rating, which may justify a higher PE ratio.
VIV's earnings are expected to grow with 17.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)27.26
PEG (5Y)N/A
EPS Next 2Y16.64%
EPS Next 3Y17.67%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
VIV's Dividend Yield is a higher than the industry average which is at 2.28.
Compared to an average S&P500 Dividend Yield of 1.87, VIV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
The dividend of VIV decreases each year by -26.73%.
VIV has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-26.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VIV pays out 42.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y16.64%
EPS Next 3Y17.67%
12.32
+0.08 (+0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.09%
Inst Owner Change0.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.74B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target15.12 (22.73%)
Short Float %1.55%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend0.29
Dividend Growth(5Y)-26.73%
DP42.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.33%
Min EPS beat(2)-5.9%
Max EPS beat(2)14.56%
EPS beat(4)2
Avg EPS beat(4)2.01%
Min EPS beat(4)-5.9%
Max EPS beat(4)14.56%
EPS beat(8)4
Avg EPS beat(8)0.1%
EPS beat(12)6
Avg EPS beat(12)1.63%
EPS beat(16)8
Avg EPS beat(16)3.46%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-2.75%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-2.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.8%
Revenue beat(12)0
Avg Revenue beat(12)-2.35%
Revenue beat(16)1
Avg Revenue beat(16)-2.17%
PT rev (1m)3.86%
PT rev (3m)8.44%
EPS NQ rev (1m)-10.4%
EPS NQ rev (3m)-16.2%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 12.45 | ||
| P/S | 1.82 | ||
| P/FCF | 10.24 | ||
| P/OCF | 5.29 | ||
| P/B | 1.56 | ||
| P/tB | 5.1 | ||
| EV/EBITDA | 4.92 |
EPS(TTM)0.7
EY5.68%
EPS(NY)0.99
Fwd EY8.03%
FCF(TTM)1.2
FCFY9.77%
OCF(TTM)2.33
OCFY18.89%
SpS6.77
BVpS7.91
TBVpS2.42
PEG (NY)27.26
PEG (5Y)N/A
Graham Number11.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.85% | ||
| ROCE | 9.09% | ||
| ROIC | 7.84% | ||
| ROICexc | 8.41% | ||
| ROICexgc | 17.16% | ||
| OM | 15.52% | ||
| PM (TTM) | 10.34% | ||
| GM | 44.27% | ||
| FCFM | 17.79% |
ROA(3y)4.01%
ROA(5y)4.36%
ROE(3y)7.05%
ROE(5y)7.39%
ROIC(3y)6.41%
ROIC(5y)5.75%
ROICexc(3y)6.73%
ROICexc(5y)6.07%
ROICexgc(3y)13.87%
ROICexgc(5y)12.32%
ROCE(3y)7.43%
ROCE(5y)6.68%
ROICexgc growth 3Y16.7%
ROICexgc growth 5Y5.97%
ROICexc growth 3Y15.84%
ROICexc growth 5Y4.31%
OM growth 3Y9.5%
OM growth 5Y1.09%
PM growth 3Y-11.16%
PM growth 5Y-2.54%
GM growth 3Y0.11%
GM growth 5Y-2.57%
F-Score9
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 65.34% | ||
| Cap/Sales | 16.6% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 84.03% | ||
| Profit Quality | 172.08% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.97 |
F-Score9
WACC14.25%
ROIC/WACC0.55
Cap/Depr(3y)69.87%
Cap/Depr(5y)72.13%
Cap/Sales(3y)18.07%
Cap/Sales(5y)18.91%
Profit Quality(3y)203.34%
Profit Quality(5y)196.48%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.55%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%15.69%
EPS Next Y0.65%
EPS Next 2Y16.64%
EPS Next 3Y17.67%
EPS Next 5Y12.67%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.48%
Revenue Next Year6.85%
Revenue Next 2Y6.42%
Revenue Next 3Y6.2%
Revenue Next 5Y5.67%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year182.09%
EBIT Next 3Y48.98%
EBIT Next 5Y28.91%
FCF growth 1Y-1.34%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y2.63%
OCF growth 3Y3.22%
OCF growth 5Y2.32%
TELEFONICA BRASIL-ADR / VIV FAQ
Can you provide the ChartMill fundamental rating for TELEFONICA BRASIL-ADR?
ChartMill assigns a fundamental rating of 5 / 10 to VIV.
Can you provide the valuation status for TELEFONICA BRASIL-ADR?
ChartMill assigns a valuation rating of 5 / 10 to TELEFONICA BRASIL-ADR (VIV). This can be considered as Fairly Valued.
How profitable is TELEFONICA BRASIL-ADR (VIV) stock?
TELEFONICA BRASIL-ADR (VIV) has a profitability rating of 6 / 10.
What is the financial health of TELEFONICA BRASIL-ADR (VIV) stock?
The financial health rating of TELEFONICA BRASIL-ADR (VIV) is 6 / 10.
What is the expected EPS growth for TELEFONICA BRASIL-ADR (VIV) stock?
The Earnings per Share (EPS) of TELEFONICA BRASIL-ADR (VIV) is expected to grow by 0.65% in the next year.