TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.17 USD
-0.03 (-0.25%)
We assign a fundamental rating of 5 out of 10 to VIV. VIV was compared to 37 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
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.
VIV had a positive operating cash flow in each of the past 5 years.
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.
VIV's Return On Equity of 8.85% is fine compared to the rest of the industry. VIV outperforms 70.27% of its industry peers.
VIV's Return On Invested Capital of 7.84% is amongst the best of the industry. VIV outperforms 86.49% 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 6.52%.
The 3 year average ROIC (6.41%) for VIV is below the current ROIC(7.84%), indicating increased profibility in the last year.
| 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's Profit Margin of 10.34% is fine compared to the rest of the industry. VIV outperforms 72.97% of its industry peers.
VIV's Profit Margin has declined in the last couple of years.
VIV's Operating Margin of 15.52% is fine compared to the rest of the industry. VIV outperforms 62.16% of its industry peers.
In the last couple of years the Operating Margin of VIV has remained more or less at the same level.
The Gross Margin of VIV (44.27%) is worse than 62.16% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIV is destroying value.
VIV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VIV has been increased compared to 5 years ago.
The debt/assets ratio for VIV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VIV (1.98) is better than 83.78% of its industry peers.
The Debt to FCF ratio of VIV is 1.74, which is an excellent value as it means it would take VIV, only 1.74 years of fcf income to pay off 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 94.59% of the companies in the same industry.
VIV has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
VIV has a better Debt to Equity ratio (0.19) than 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.55
WACC14.16%
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 in line with its industry peers.
A Quick Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, VIV is in line with its industry, outperforming 45.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
VIV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.68%, which is quite good.
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)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 16.06% yearly.
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y16.48%
EPS Next 2Y25.37%
EPS Next 3Y23.63%
EPS Next 5Y16.06%
Revenue Next Year6.87%
Revenue Next 2Y6.4%
Revenue Next 3Y6.2%
Revenue Next 5Y5.67%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.64, 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 70.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.87, VIV is valued a bit cheaper.
VIV is valuated correctly with a Price/Forward Earnings ratio of 12.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 75.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, VIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
VIV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIV is cheaper than 89.19% 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 | 10.25 | ||
| EV/EBITDA | 4.94 |
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.
VIV's earnings are expected to grow with 23.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y25.37%
EPS Next 3Y23.63%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 2.38, VIV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, VIV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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%
NYSE:VIV (1/6/2026, 10:51:08 AM)
12.17
-0.03 (-0.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.02%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.50B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target14.66 (20.46%)
Short Float %1.39%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.28
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)-3.43%
PT rev (3m)3.57%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-12.82%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 12.52 | ||
| P/S | 1.82 | ||
| P/FCF | 10.25 | ||
| P/OCF | 5.3 | ||
| P/B | 1.56 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 4.94 |
EPS(TTM)0.69
EY5.67%
EPS(NY)0.97
Fwd EY7.99%
FCF(TTM)1.19
FCFY9.75%
OCF(TTM)2.29
OCFY18.85%
SpS6.67
BVpS7.8
TBVpS2.38
PEG (NY)1.07
PEG (5Y)N/A
Graham Number11
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 | 1.98 |
F-Score9
WACC14.16%
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 5Y16.06%
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 5Y5.67%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year181.75%
EBIT Next 3Y48.97%
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.
What is the valuation status for VIV stock?
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 valuation of TELEFONICA BRASIL-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TELEFONICA BRASIL-ADR (VIV) is 17.64 and the Price/Book (PB) ratio is 1.56.
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.