TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
13.22 USD
+0.15 (+1.15%)
13.21 USD
-0.01 (-0.08%)
VIV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 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.
VIV had a positive operating cash flow in the past year.
VIV had positive earnings in each of the past 5 years.
Each year in the past 5 years VIV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VIV (4.89%) is better than 70.27% of its industry peers.
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.
With an excellent Return On Invested Capital value of 7.84%, VIV belongs to the best 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 6.50%.
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
The Profit Margin of VIV (10.34%) is better than 72.97% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
VIV has a better Operating Margin (15.52%) than 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.
VIV has a Gross Margin of 44.27%. This is in the lower half of the industry: VIV underperforms 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
VIV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VIV has been reduced compared to 1 year ago.
VIV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VIV has a worse debt to assets ratio.
2.2 Solvency
VIV has an Altman-Z score of 2.04. 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.
The Altman-Z score of VIV (2.04) 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's Debt to Equity ratio of 0.19 is amongst the best of the industry. VIV outperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.54
WACC14.44%
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.
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%.
VIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.76% yearly.
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
The Earnings Per Share is expected to grow by 12.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y15.06%
EPS Next 3Y16.45%
EPS Next 5Y12.67%
Revenue Next Year6.85%
Revenue Next 2Y6.35%
Revenue Next 3Y6.02%
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 18.89, which indicates a rather expensive current valuation of VIV.
VIV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIV is cheaper than 70.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. VIV is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.57, the valuation of VIV can be described as correct.
VIV's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIV is cheaper than 81.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. VIV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 89.19% of the companies 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 | 10.86 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
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 16.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.06%
EPS Next 3Y16.45%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 5.67, VIV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, VIV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 2Y15.06%
EPS Next 3Y16.45%
13.22
+0.15 (+1.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change0.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.18B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target15.18 (14.83%)
Short Float %1.54%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)7.25%
PT rev (3m)10.77%
EPS NQ rev (1m)-11.1%
EPS NQ rev (3m)-16.2%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 13.57 | ||
| P/S | 1.93 | ||
| P/FCF | 10.86 | ||
| P/OCF | 5.62 | ||
| P/B | 1.65 | ||
| P/tB | 5.41 | ||
| EV/EBITDA | 5.19 |
EPS(TTM)0.7
EY5.3%
EPS(NY)0.97
Fwd EY7.37%
FCF(TTM)1.22
FCFY9.21%
OCF(TTM)2.35
OCFY17.81%
SpS6.85
BVpS8
TBVpS2.44
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.22
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 | 2.04 |
F-Score9
WACC14.44%
ROIC/WACC0.54
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 Y-0.1%
EPS Next 2Y15.06%
EPS Next 3Y16.45%
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 2Y6.35%
Revenue Next 3Y6.02%
Revenue Next 5Y5.67%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year182.4%
EBIT Next 3Y48.46%
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 decline by -0.1% in the next year.