TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
11.97 USD
+0.14 (+1.18%)
11.97 USD
0 (0%)
Overall VIV gets a fundamental rating of 5 out of 10. We evaluated VIV against 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 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.
In the past 5 years VIV has always 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 70.27% of its industry peers.
VIV has a better Return On Equity (8.85%) than 70.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.84%, VIV belongs to the top of the industry, outperforming 86.49% 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 6.52%.
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 has a Profit Margin of 10.34%. This is in the better half of the industry: VIV outperforms 72.97% 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 62.16% of the companies in the same industry.
VIV's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 44.27%, VIV is doing worse than 62.16% of the companies in the same industry.
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.
Compared to 1 year ago, VIV has less shares outstanding
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
VIV has an Altman-Z score of 1.97. This is not the best score and indicates that VIV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.97, VIV belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
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.
VIV has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. VIV outperforms 94.59% of its industry peers.
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 Debt to Equity ratio of 0.19. This is amongst the best in the industry. VIV outperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.56
WACC14.11%
2.3 Liquidity
VIV has a Current Ratio of 1.02. This is a normal value and indicates that VIV is financially healthy and should not expect problems in meeting its short term obligations.
VIV has a Current ratio of 1.02. This is comparable to the rest of the industry: VIV outperforms 48.65% of its industry peers.
A Quick Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
VIV's Quick ratio of 0.96 is in line compared to the rest of the industry. VIV outperforms 48.65% of its industry peers.
| 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.
The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
Looking at the last year, VIV shows a small growth in Revenue. The Revenue has grown by 6.88% in the last year.
The Revenue has been growing slightly by 4.76% on average over the past years.
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
Based on estimates for the next years, VIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
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
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
Based on the Price/Earnings ratio of 17.60, the valuation of VIV can be described as rather expensive.
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.
VIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
The Price/Forward Earnings ratio is 12.41, which indicates a correct valuation of VIV.
Based on the Price/Forward Earnings ratio, VIV is valued a bit cheaper than 78.38% of the companies in the same industry.
VIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.17 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
VIV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 23.63% in the coming years.
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 1.72%. Purely for dividend investing, there may be better candidates out there.
VIV's Dividend Yield is a higher than the industry average which is at 2.41.
VIV's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of VIV decreases each year by -26.73%.
VIV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-26.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VIV pays out 42.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y25.37%
EPS Next 3Y23.63%
11.97
+0.14 (+1.18%)
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 Cap19.18B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target14.66 (22.47%)
Short Float %1.39%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)-3.43%
PT rev (3m)5.14%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-16.35%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.81 | ||
| P/FCF | 10.17 | ||
| P/OCF | 5.26 | ||
| P/B | 1.55 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 4.89 |
EPS(TTM)0.68
EY5.68%
EPS(NY)0.96
Fwd EY8.06%
FCF(TTM)1.18
FCFY9.83%
OCF(TTM)2.28
OCFY19.01%
SpS6.62
BVpS7.73
TBVpS2.36
PEG (NY)1.07
PEG (5Y)N/A
Graham Number10.88
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 | 1.97 |
F-Score9
WACC14.11%
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)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.
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 16.48% in the next year.