TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.24 USD
-0.22 (-1.77%)
12.36 USD
+0.12 (+0.98%)
Taking everything into account, VIV scores 5 out of 10 in our fundamental rating. VIV was compared to 38 industry peers in the Diversified Telecommunication Services industry. VIV has an average financial health and profitability rating. 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.
In the past year VIV had a positive cash flow from operations.
In the past 5 years VIV has always been profitable.
Each year in the past 5 years VIV had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.89%, VIV is doing good in the industry, outperforming 71.05% 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 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 6.52%.
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 73.68% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
Looking at the Operating Margin, with a value of 15.52%, VIV is in the better half of 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's Gross Margin of 44.27% is on the low side compared to the rest of the industry. VIV is outperformed by 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.
VIV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VIV has more shares outstanding
VIV has a worse debt/assets ratio than last year.
2.2 Solvency
VIV has an Altman-Z score of 1.98. 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.
VIV has a Altman-Z score of 1.98. This is amongst the best in the industry. VIV outperforms 81.58% 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.
With an excellent Debt to FCF ratio value of 1.74, VIV belongs to the best 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.
With an excellent Debt to Equity ratio value of 0.19, VIV belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.55
WACC14.24%
2.3 Liquidity
A Current Ratio of 1.02 indicates that VIV should not have too much problems paying its short term obligations.
The Current ratio of VIV (1.02) is comparable to the rest of the industry.
A Quick Ratio of 0.96 indicates that VIV may have some problems paying 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
VIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.55%.
The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
VIV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.88%.
The Revenue has been growing slightly by 4.76% on average over the past years.
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.
The Revenue is expected to grow by 5.67% on average over the next years.
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
VIV is valuated rather expensively with a Price/Earnings ratio of 17.74.
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.
The average S&P500 Price/Earnings ratio is at 26.76. VIV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.47, which indicates a correct valuation of VIV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 78.95% of the companies listed in the same industry.
VIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 12.47 |
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 86.84% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.67% in the coming years.
PEG (NY)27.47
PEG (5Y)N/A
EPS Next 2Y16.64%
EPS Next 3Y17.67%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.60, VIV pays a bit more dividend than its industry peers.
VIV's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 2Y16.64%
EPS Next 3Y17.67%
12.24
-0.22 (-1.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.09%
Inst Owner Change0.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.61B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target15.12 (23.53%)
Short Float %1.55%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.29
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)3.86%
PT rev (3m)10.32%
EPS NQ rev (1m)-10.4%
EPS NQ rev (3m)-16.2%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 12.47 | ||
| P/S | 1.82 | ||
| P/FCF | 10.25 | ||
| P/OCF | 5.3 | ||
| P/B | 1.56 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)0.69
EY5.64%
EPS(NY)0.98
Fwd EY8.02%
FCF(TTM)1.19
FCFY9.75%
OCF(TTM)2.31
OCFY18.86%
SpS6.71
BVpS7.84
TBVpS2.4
PEG (NY)27.47
PEG (5Y)N/A
Graham Number11.03
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
WACC14.24%
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.