TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
11.7 USD
+0.1 (+0.86%)
11.7 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. Both the profitability and the financial health of VIV get a neutral evaluation. Nothing too spectacular is happening here. VIV has a correct valuation and a medium growth rate.
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.
In the past 5 years VIV has always 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.
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 6.54%.
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
The Profit Margin of VIV (10.34%) is better than 73.68% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
Looking at the Operating Margin, with a value of 15.52%, VIV is in the better half of 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's Gross Margin of 44.27% is on the low side compared to the rest of the industry. VIV is outperformed by 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.
VIV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VIV has more shares outstanding
The debt/assets ratio for VIV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.93 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, VIV belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
VIV has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
The Debt to FCF ratio of VIV (1.74) is better than 94.74% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
VIV's Debt to Equity ratio of 0.19 is amongst the best of the industry. VIV outperforms 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.56
WACC14.12%
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 comparable to the rest of the industry.
VIV has a Quick Ratio of 1.02. 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 Quick ratio (0.96) which 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
The earnings per share for VIV have decreased strongly by -21.55% in the last year.
The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
The Revenue has been growing slightly by 6.88% in the past year.
Measured over the past years, VIV shows a small growth in Revenue. The Revenue has been growing by 4.76% on average per year.
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.
Based on estimates for the next years, VIV will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
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
Based on the Price/Earnings ratio of 17.21, the valuation of VIV can be described as rather expensive.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than 71.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.50, VIV is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.10, which indicates a correct valuation of VIV.
Based on the Price/Forward Earnings ratio, VIV is valued a bit cheaper than 78.95% of the companies in the same industry.
VIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
VIV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIV is cheaper than 89.47% of the companies in the same industry.
VIV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VIV does not grow enough to justify the current Price/Earnings ratio.
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 17.67% in the coming years.
PEG (NY)26.65
PEG (5Y)N/A
EPS Next 2Y16.64%
EPS Next 3Y17.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, VIV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.30, VIV pays a bit more dividend than its industry peers.
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 | 2.11% |
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
42.62% of the earnings are spent on dividend by VIV. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y16.64%
EPS Next 3Y17.67%
11.7
+0.1 (+0.86%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.09%
Inst Owner Change0.94%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.75B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target15.12 (29.23%)
Short Float %1.48%
Short Ratio6.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend0.28
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)3.2%
PT rev (3m)8.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.2%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 12.1 | ||
| P/S | 1.77 | ||
| P/FCF | 9.95 | ||
| P/OCF | 5.15 | ||
| P/B | 1.51 | ||
| P/tB | 4.96 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)0.68
EY5.81%
EPS(NY)0.97
Fwd EY8.26%
FCF(TTM)1.18
FCFY10.05%
OCF(TTM)2.27
OCFY19.43%
SpS6.61
BVpS7.72
TBVpS2.36
PEG (NY)26.65
PEG (5Y)N/A
Graham Number10.87
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 | 1.93 |
F-Score9
WACC14.12%
ROIC/WACC0.56
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.