TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
11.73 USD
+0.03 (+0.26%)
11.73 USD
0 (0%)
VIV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VIV had positive earnings in the past year.
VIV had a positive operating cash flow in the past year.
Each year in the past 5 years VIV has been profitable.
VIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VIV has a better Return On Assets (4.89%) than 71.05% of its industry peers.
VIV has a better Return On Equity (8.85%) than 71.05% of its industry peers.
VIV's Return On Invested Capital of 7.84% is amongst the best of the industry. VIV outperforms 86.84% 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 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.
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.
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
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
Compared to 1 year ago, VIV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VIV (1.95) is better than 84.21% 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.
Looking at the Debt to FCF ratio, with a value of 1.74, VIV belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
The Debt to Equity ratio of VIV (0.19) is better than 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.95 |
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.
Looking at the Current ratio, with a value of 1.02, VIV is in line with its industry, outperforming 47.37% of the companies in the same 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 of 0.96. This is comparable to the rest of the industry: VIV outperforms 47.37% of its industry peers.
| 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%.
Measured over the past years, VIV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.63% on average per year.
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
Based on estimates for the next years, VIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.67% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.51, VIV is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 71.05% of the companies listed in the same industry.
VIV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
VIV is valuated correctly with a Price/Forward Earnings ratio of 12.26.
78.95% of the companies in the same industry are more expensive than VIV, based on the Price/Forward Earnings ratio.
VIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
86.84% of the companies in the same industry are more expensive than VIV, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 4.84 |
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)27.11
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.
VIV's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| 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%
11.73
+0.03 (+0.26%)
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 Cap18.80B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price TargetN/A
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 | 17.51 | ||
| Fwd PE | 12.26 | ||
| P/S | 1.79 | ||
| P/FCF | 10.08 | ||
| P/OCF | 5.21 | ||
| P/B | 1.53 | ||
| P/tB | 5.02 | ||
| EV/EBITDA | 4.84 |
EPS(TTM)0.67
EY5.71%
EPS(NY)0.96
Fwd EY8.16%
FCF(TTM)1.16
FCFY9.92%
OCF(TTM)2.25
OCFY19.18%
SpS6.54
BVpS7.64
TBVpS2.34
PEG (NY)27.11
PEG (5Y)N/A
Graham Number10.73
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 | 1.95 |
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)-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.