TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
12.185 USD
+0.25 (+2.05%)
Taking everything into account, VIV scores 5 out of 10 in our fundamental rating. VIV was compared to 36 industry peers in the Diversified Telecommunication Services industry. VIV has only an average score on both its financial health and profitability. VIV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VIV was profitable.
In the past year VIV had a positive cash flow from operations.
Each year in the past 5 years VIV has been profitable.
Each year in the past 5 years VIV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.61%, VIV belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Equity value of 8.57%, VIV is doing good in the industry, outperforming 75.00% of the companies in the same industry.
VIV has a Return On Invested Capital of 7.48%. This is in the better half of the industry: VIV outperforms 77.78% of its industry peers.
VIV had an Average Return On Invested Capital over the past 3 years of 6.41%. This is in line with the industry average of 5.86%.
The last Return On Invested Capital (7.48%) for VIV is above the 3 year average (6.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.57% | ||
| ROIC | 7.48% |
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 better Profit Margin (10.12%) than 77.78% of its industry peers.
VIV's Profit Margin has declined in the last couple of years.
The Operating Margin of VIV (14.99%) is better than 69.44% of its industry peers.
In the last couple of years the Operating Margin of VIV has remained more or less at the same level.
VIV has a worse Gross Margin (44.00%) than 63.89% of its industry peers.
VIV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.99% | ||
| PM (TTM) | 10.12% | ||
| GM | 44% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIV is destroying value.
The number of shares outstanding for VIV has been reduced compared to 1 year ago.
Compared to 5 years ago, VIV has more shares outstanding
VIV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.85 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
VIV has a Altman-Z score of 1.85. This is amongst the best in the industry. VIV outperforms 83.33% of its industry peers.
The Debt to FCF ratio of VIV is 1.95, which is an excellent value as it means it would take VIV, only 1.95 years of fcf income to pay off all of its debts.
VIV has a better Debt to FCF ratio (1.95) than 94.44% of its industry peers.
VIV has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VIV (0.20) is better than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.53
WACC14.17%
2.3 Liquidity
A Current Ratio of 0.98 indicates that VIV may have some problems paying its short term obligations.
The Current ratio of VIV (0.98) is worse than 63.89% of its industry peers.
VIV has a Quick Ratio of 0.98. This is a bad value and indicates that VIV is not financially healthy enough and could expect problems in meeting its short term obligations.
VIV has a worse Quick ratio (0.95) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for VIV have decreased strongly by -35.20% in the last year.
The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
Looking at the last year, VIV shows a small growth in Revenue. The Revenue has grown by 7.03% in the last year.
VIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.76% yearly.
EPS 1Y (TTM)-35.2%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%13.51%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%7.06%
3.2 Future
The Earnings Per Share is expected to grow by 10.61% on average over the next years. This is quite good.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y0.75%
EPS Next 2Y15.44%
EPS Next 3Y16.38%
EPS Next 5Y10.61%
Revenue Next Year6.86%
Revenue Next 2Y6.36%
Revenue Next 3Y6.02%
Revenue Next 5Y4.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 18.19, which indicates a rather expensive current valuation of VIV.
Compared to the rest of the industry, the Price/Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 63.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. VIV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.58, which indicates a correct valuation of VIV.
80.56% of the companies in the same industry are more expensive than VIV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, VIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 12.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
VIV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.21 | ||
| EV/EBITDA | 4.91 |
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.
A more expensive valuation may be justified as VIV's earnings are expected to grow with 16.38% in the coming years.
PEG (NY)24.19
PEG (5Y)N/A
EPS Next 2Y15.44%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.11, VIV pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, VIV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of VIV decreases each year by -26.73%.
VIV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-26.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
44.23% of the earnings are spent on dividend by VIV. This is a bit on the high side, but may be sustainable.
DP44.23%
EPS Next 2Y15.44%
EPS Next 3Y16.38%
NYSE:VIV (10/17/2025, 11:27:06 AM)
12.185
+0.25 (+2.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.53B
Analysts79
Price Target14.15 (16.13%)
Short Float %1.71%
Short Ratio7.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.29
Dividend Growth(5Y)-26.73%
DP44.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.16%
Min EPS beat(2)-5.9%
Max EPS beat(2)-2.41%
EPS beat(4)2
Avg EPS beat(4)-0.09%
Min EPS beat(4)-5.9%
Max EPS beat(4)6.14%
EPS beat(8)4
Avg EPS beat(8)-0.55%
EPS beat(12)6
Avg EPS beat(12)4.2%
EPS beat(16)8
Avg EPS beat(16)3.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-2.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.66%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)1
Avg Revenue beat(16)-2.12%
PT rev (1m)3.28%
PT rev (3m)26.67%
EPS NQ rev (1m)3.8%
EPS NQ rev (3m)9.74%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-44.96%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 12.58 | ||
| P/S | 1.85 | ||
| P/FCF | 10.21 | ||
| P/OCF | 5.27 | ||
| P/B | 1.56 | ||
| P/tB | 5.23 | ||
| EV/EBITDA | 4.91 |
EPS(TTM)0.67
EY5.5%
EPS(NY)0.97
Fwd EY7.95%
FCF(TTM)1.19
FCFY9.8%
OCF(TTM)2.31
OCFY18.98%
SpS6.6
BVpS7.8
TBVpS2.33
PEG (NY)24.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.57% | ||
| ROCE | 8.67% | ||
| ROIC | 7.48% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 17.56% | ||
| OM | 14.99% | ||
| PM (TTM) | 10.12% | ||
| GM | 44% | ||
| FCFM | 18.08% |
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%
ROICexcg growth 3Y16.7%
ROICexcg 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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 65.88% | ||
| Cap/Sales | 16.94% | ||
| Interest Coverage | 4.07 | ||
| Cash Conversion | 86.04% | ||
| Profit Quality | 178.75% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.85 |
F-Score8
WACC14.17%
ROIC/WACC0.53
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)-35.2%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%13.51%
EPS Next Y0.75%
EPS Next 2Y15.44%
EPS Next 3Y16.38%
EPS Next 5Y10.61%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%7.06%
Revenue Next Year6.86%
Revenue Next 2Y6.36%
Revenue Next 3Y6.02%
Revenue Next 5Y4.21%
EBIT growth 1Y8.11%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year182.4%
EBIT Next 3Y48.46%
EBIT Next 5Y27.21%
FCF growth 1Y1.12%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y0.96%
OCF growth 3Y3.22%
OCF growth 5Y2.32%