TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.06 USD
-0.1 (-0.82%)
12.06 USD
0 (0%)
VIV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 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
- In the past year VIV was profitable.
- VIV had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 4.89%, VIV is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
- With a decent Return On Equity value of 8.85%, VIV is doing good in the industry, outperforming 70.27% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 7.84%, VIV belongs to the best of the industry, outperforming 86.49% 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 better Profit Margin (10.34%) than 72.97% of its industry peers.
- VIV's Profit Margin has declined in the last couple of years.
- The Operating Margin of VIV (15.52%) is better than 62.16% of its industry peers.
- VIV's Operating Margin has been stable in the last couple of years.
- VIV has a worse Gross Margin (44.27%) than 62.16% of its industry peers.
- VIV's Gross Margin has declined in the last couple of years.
| 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.
- 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
- Compared to 1 year ago, VIV has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.94 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
- VIV's Altman-Z score of 1.94 is amongst the best of the industry. VIV outperforms 83.78% of its industry peers.
- 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 94.59% 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 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.55
WACC14.13%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that VIV should not have too much problems paying its short term obligations.
- VIV's Current ratio of 1.02 is in line compared to the rest of the industry. VIV outperforms 48.65% of its industry peers.
- 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.
- 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
- The Earnings Per Share has grown by an nice 14.68% over the past year.
- VIV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.63% yearly.
- Looking at the last year, VIV shows a small growth in Revenue. The Revenue has grown by 6.88% in the last 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)14.68%
EPS 3Y-3.1%
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 16.15% yearly.
- The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y16.48%
EPS Next 2Y25.37%
EPS Next 3Y23.63%
EPS Next 5Y16.15%
Revenue Next Year6.87%
Revenue Next 2Y6.4%
Revenue Next 3Y6.2%
Revenue Next 5Y5.74%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.23 indicates a rather expensive valuation of VIV.
- VIV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIV is cheaper than 70.27% of the companies in the same industry.
- VIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 12.17 indicates a correct valuation of VIV.
- Based on the Price/Forward Earnings ratio, VIV is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
- VIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
- 89.19% of the companies in the same industry are more expensive than VIV, based on the Enterprise Value to EBITDA ratio.
- VIV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 4.8 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 23.63% in the coming years.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y25.37%
EPS Next 3Y23.63%
5. Dividend
5.1 Amount
- VIV has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.33, VIV pays a bit more dividend than its industry peers.
- VIV's Dividend Yield is comparable with the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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 2Y25.37%
EPS Next 3Y23.63%
12.06
-0.1 (-0.82%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-23 2026-02-23/bmo
Inst Owners13.02%
Inst Owner Change0.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.33B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts75
Price Target14.66 (21.56%)
Short Float %1.39%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.29
Dividend Growth(5Y)-26.73%
DP42.62%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-3.04%
PT rev (3m)3.57%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-11.25%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 12.17 | ||
| P/S | 1.77 | ||
| P/FCF | 9.97 | ||
| P/OCF | 5.15 | ||
| P/B | 1.52 | ||
| P/tB | 4.96 | ||
| EV/EBITDA | 4.8 |
EPS(TTM)0.7
EY5.8%
EPS(NY)0.99
Fwd EY8.22%
FCF(TTM)1.21
FCFY10.03%
OCF(TTM)2.34
OCFY19.4%
SpS6.8
BVpS7.95
TBVpS2.43
PEG (NY)1.05
PEG (5Y)N/A
Graham Number11.19
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 | 1.94 |
F-Score9
WACC14.13%
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)14.68%
EPS 3Y-3.1%
EPS 5Y-10.63%
EPS Q2Q%15.69%
EPS Next Y16.48%
EPS Next 2Y25.37%
EPS Next 3Y23.63%
EPS Next 5Y16.15%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.48%
Revenue Next Year6.87%
Revenue Next 2Y6.4%
Revenue Next 3Y6.2%
Revenue Next 5Y5.74%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year181.75%
EBIT Next 3Y48.97%
EBIT Next 5Y29%
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 6 / 10 to VIV.
What is the valuation status for VIV stock?
ChartMill assigns a valuation rating of 6 / 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 valuation of TELEFONICA BRASIL-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TELEFONICA BRASIL-ADR (VIV) is 17.23 and the Price/Book (PB) ratio is 1.52.
What is the earnings growth outlook for TELEFONICA BRASIL-ADR?
The Earnings per Share (EPS) of TELEFONICA BRASIL-ADR (VIV) is expected to grow by 16.48% in the next year.