TELEFONICA BRASIL-ADR (VIV)
US87936R2058 - ADR
We assign a fundamental rating of 6 out of 10 to VIV. VIV was compared to 33 industry peers in the Diversified Telecommunication Services industry. While VIV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VIV. This makes VIV very considerable for value investing!
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.
Each year in the past 5 years VIV had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.35%, VIV belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
With a decent Return On Equity value of 7.80%, VIV is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of VIV (7.23%) is better than 84.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIV is in line with the industry average of 5.42%.
The last Return On Invested Capital (7.23%) for VIV is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 7.8% | ||
| ROIC | 7.23% |
ROA(3y)4.33%
ROA(5y)4.4%
ROE(3y)7.37%
ROE(5y)7.22%
ROIC(3y)5.61%
ROIC(5y)5.57%
1.3 Margins
VIV has a better Profit Margin (9.83%) than 78.13% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
VIV's Operating Margin of 15.08% is fine compared to the rest of the industry. VIV outperforms 68.75% of its industry peers.
VIV's Operating Margin has improved in the last couple of years.
The Gross Margin of VIV (44.11%) is worse than 68.75% of its industry peers.
In the last couple of years the Gross Margin of VIV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.08% | ||
| PM (TTM) | 9.83% | ||
| GM | 44.11% |
OM growth 3Y6.31%
OM growth 5Y2.44%
PM growth 3Y-4.44%
PM growth 5Y-14.02%
GM growth 3Y-2.78%
GM growth 5Y-3.35%
2. Health
2.1 Basic Checks
VIV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VIV has less shares outstanding
The number of shares outstanding for VIV has been reduced compared to 5 years ago.
The debt/assets ratio for VIV has been reduced compared to a year ago.
2.2 Solvency
VIV has an Altman-Z score of 1.62. This is a bad value and indicates that VIV is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, VIV belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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.
The Debt to FCF ratio of VIV (1.95) is better than 90.63% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.19, VIV belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.48
WACC15.04%
2.3 Liquidity
VIV has a Current Ratio of 0.96. 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 Current ratio (0.96) than 62.50% of its industry peers.
VIV has a Quick Ratio of 0.96. This is a bad value and indicates that VIV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.91, VIV perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
VIV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.25%, which is quite good.
Measured over the past years, VIV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.52% on average per year.
The Revenue has been growing slightly by 6.98% in the past year.
The Revenue has been growing slightly by 3.69% on average over the past years.
EPS 1Y (TTM)18.25%
EPS 3Y3.35%
EPS 5Y-10.52%
EPS Q2Q%13.97%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y6.5%
Revenue growth 5Y3.69%
Sales Q2Q%7.07%
3.2 Future
The Earnings Per Share is expected to grow by 18.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.06% on average over the next years. This is quite good.
EPS Next Y16.02%
EPS Next 2Y18.66%
EPS Next 3Y16.64%
EPS Next 5Y18.05%
Revenue Next Year6.62%
Revenue Next 2Y6.07%
Revenue Next 3Y5.58%
Revenue Next 5Y8.06%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.70, the valuation of VIV can be described as correct.
VIV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIV is cheaper than 68.75% of the companies in the same industry.
VIV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.15, the valuation of VIV can be described as reasonable.
VIV's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIV is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VIV to the average of the S&P500 Index (23.99), we can say VIV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIV indicates a rather cheap valuation: VIV is cheaper than 96.88% of the companies listed in the same industry.
VIV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIV is cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
VIV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VIV may justify a higher PE ratio.
A more expensive valuation may be justified as VIV's earnings are expected to grow with 16.64% in the coming years.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y18.66%
EPS Next 3Y16.64%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.04%.
In the last 3 months the price of VIV has falen by -23.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VIV's Dividend Yield is a higher than the industry average which is at 5.31.
Compared to an average S&P500 Dividend Yield of 2.36, VIV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of VIV decreases each year by -1.15%.
VIV has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VIV decreased recently.
Dividend Growth(5Y)-1.15%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.93% of the earnings are spent on dividend by VIV. This is a low number and sustainable payout ratio.
DP39.93%
EPS Next 2Y18.66%
EPS Next 3Y16.64%
TELEFONICA BRASIL-ADR
NYSE:VIV (12/26/2024, 4:10:02 PM)
After market: 7.79 0 (0%)7.79
-0.08 (-1.02%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners9.72%
Inst Owner Change0.59%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.70B
Analysts79.05
Price Target10 (28.37%)
Short Float %0.41%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)-1.15%
DP39.93%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.46%
Min EPS beat(2)-11.06%
Max EPS beat(2)6.14%
EPS beat(4)2
Avg EPS beat(4)-1.82%
Min EPS beat(4)-14.22%
Max EPS beat(4)11.87%
EPS beat(8)4
Avg EPS beat(8)1.44%
EPS beat(12)6
Avg EPS beat(12)3.94%
EPS beat(16)8
Avg EPS beat(16)1.4%
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-2.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-2.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-2.01%
Revenue beat(16)1
Avg Revenue beat(16)-2.17%
PT rev (1m)-3.87%
PT rev (3m)-6.95%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 11.15 | ||
| P/S | 1.44 | ||
| P/FCF | 7.98 | ||
| P/OCF | 4.11 | ||
| P/B | 1.14 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 4.14 |
EPS(TTM)0.53
EY6.8%
EPS(NY)0.7
Fwd EY8.97%
FCF(TTM)0.98
FCFY12.53%
OCF(TTM)1.9
OCFY24.33%
SpS5.43
BVpS6.83
TBVpS2.07
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 7.8% | ||
| ROCE | 8.29% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 16.12% | ||
| OM | 15.08% | ||
| PM (TTM) | 9.83% | ||
| GM | 44.11% | ||
| FCFM | 17.99% |
ROA(3y)4.33%
ROA(5y)4.4%
ROE(3y)7.37%
ROE(5y)7.22%
ROIC(3y)5.61%
ROIC(5y)5.57%
ROICexc(3y)5.87%
ROICexc(5y)5.84%
ROICexgc(3y)12.04%
ROICexgc(5y)11.64%
ROCE(3y)6.46%
ROCE(5y)6.4%
ROICexcg growth 3Y10.94%
ROICexcg growth 5Y2.6%
ROICexc growth 3Y8.66%
ROICexc growth 5Y2.87%
OM growth 3Y6.31%
OM growth 5Y2.44%
PM growth 3Y-4.44%
PM growth 5Y-14.02%
GM growth 3Y-2.78%
GM growth 5Y-3.35%
F-Score9
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 66.57% | ||
| Cap/Sales | 16.94% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 86.19% | ||
| Profit Quality | 183.03% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.62 |
F-Score9
WACC15.04%
ROIC/WACC0.48
Cap/Depr(3y)73.73%
Cap/Depr(5y)75.19%
Cap/Sales(3y)19.54%
Cap/Sales(5y)19.56%
Profit Quality(3y)186.83%
Profit Quality(5y)193.96%
High Growth Momentum
Growth
EPS 1Y (TTM)18.25%
EPS 3Y3.35%
EPS 5Y-10.52%
EPS Q2Q%13.97%
EPS Next Y16.02%
EPS Next 2Y18.66%
EPS Next 3Y16.64%
EPS Next 5Y18.05%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y6.5%
Revenue growth 5Y3.69%
Sales Q2Q%7.07%
Revenue Next Year6.62%
Revenue Next 2Y6.07%
Revenue Next 3Y5.58%
Revenue Next 5Y8.06%
EBIT growth 1Y19.18%
EBIT growth 3Y13.22%
EBIT growth 5Y6.22%
EBIT Next Year189.04%
EBIT Next 3Y47.51%
EBIT Next 5Y32.19%
FCF growth 1Y14.13%
FCF growth 3Y-3.36%
FCF growth 5Y23.84%
OCF growth 1Y4.3%
OCF growth 3Y-0.97%
OCF growth 5Y9.49%