TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
13.11 USD
-0.09 (-0.68%)
13.11 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VIV. VIV was compared to 36 industry peers in the Diversified Telecommunication Services industry. VIV has only an average score on both its financial health and profitability. VIV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VIV had positive earnings in the past year.
VIV had a positive operating cash flow in the past year.
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
VIV has a better Return On Assets (4.89%) than 72.22% of its industry peers.
VIV has a Return On Equity of 8.85%. This is in the better half of the industry: VIV outperforms 72.22% 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 83.33% 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 6.44%.
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 75.00% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
VIV has a Operating Margin of 15.52%. This is in the better half of the industry: VIV outperforms 72.22% 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 worse Gross Margin (44.27%) than 63.89% 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
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
An Altman-Z score of 2.03 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
VIV's Altman-Z score of 2.03 is amongst the best of the industry. VIV outperforms 83.33% of its industry peers.
VIV has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
VIV has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. VIV outperforms 94.44% 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 better Debt to Equity ratio (0.19) than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.54
WACC14.41%
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 comparable to the rest of the industry.
VIV has a Quick Ratio of 1.02. 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 Quick ratio of 0.96. This is comparable to the rest of the industry: VIV outperforms 47.22% 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 for VIV have decreased strongly by -21.55% in the last year.
Measured over the past years, VIV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.63% on average per year.
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)-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 10.68% on average per year.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y15.06%
EPS Next 3Y16.45%
EPS Next 5Y10.68%
Revenue Next Year6.85%
Revenue Next 2Y6.35%
Revenue Next 3Y6.02%
Revenue Next 5Y4.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VIV is valuated rather expensively with a Price/Earnings ratio of 18.46.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than 61.11% of the companies in the same industry.
VIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
VIV is valuated correctly with a Price/Forward Earnings ratio of 13.36.
Based on the Price/Forward Earnings ratio, VIV is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
VIV is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 13.36 |
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 94.44% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
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 16.45% 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 1.86%. 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 5.85.
Compared to the average S&P500 Dividend Yield of 2.44, VIV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
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%
13.11
-0.09 (-0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change0.74%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.01B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target14.65 (11.75%)
Short Float %1.58%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)3.49%
PT rev (3m)9.09%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-16.05%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)-45.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 13.36 | ||
| P/S | 1.9 | ||
| P/FCF | 10.69 | ||
| P/OCF | 5.53 | ||
| P/B | 1.63 | ||
| P/tB | 5.33 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)0.71
EY5.42%
EPS(NY)0.98
Fwd EY7.48%
FCF(TTM)1.23
FCFY9.35%
OCF(TTM)2.37
OCFY18.08%
SpS6.89
BVpS8.05
TBVpS2.46
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.34
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 | 2.03 |
F-Score9
WACC14.41%
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 5Y10.68%
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 5Y4.27%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year182.4%
EBIT Next 3Y48.46%
EBIT Next 5Y27.29%
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.