TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.06 USD
-0.36 (-2.9%)
11.88 USD
-0.18 (-1.49%)
Taking everything into account, VIV scores 6 out of 10 in our fundamental rating. VIV was compared to 37 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 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.
- VIV's Return On Invested Capital of 7.84% is amongst the best of the industry. VIV outperforms 86.49% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VIV is in line with the industry average of 6.52%.
- The last Return On Invested Capital (7.84%) for VIV is above the 3 year average (6.41%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 10.34%, VIV is doing good in the industry, outperforming 72.97% of the companies in the same industry.
- 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.
- 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.
- The number of shares outstanding for VIV has been increased compared to 5 years ago.
- VIV has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.95 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
- VIV's Altman-Z score of 1.95 is amongst the best of the industry. VIV outperforms 83.78% 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 better Debt to FCF ratio (1.74) than 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.
- The Debt to Equity ratio of VIV (0.19) is better than 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.55
WACC14.13%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that VIV should not have too much problems paying its short term obligations.
- VIV's Current ratio of 1.02 is in line compared 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 has a Quick ratio (0.96) which is in line with 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.
- 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.
- 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)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
- The Earnings Per Share is expected to grow by 16.15% on average over the next years. This is quite good.
- VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y16.48%
EPS Next 2Y25.37%
EPS Next 3Y23.63%
EPS Next 5Y16.15%
Revenue Next Year6.87%
Revenue Next 2Y6.4%
Revenue Next 3Y6.2%
Revenue Next 5Y5.74%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.23, VIV is valued on the expensive side.
- 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.
- When comparing the Price/Earnings ratio of VIV to the average of the S&P500 Index (27.30), we can say VIV is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 12.19, VIV is valued correctly.
- Based on the Price/Forward Earnings ratio, VIV is valued cheaper than 81.08% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, VIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.23 | ||
| Fwd PE | 12.19 |
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 89.19% of the companies listed in the same industry.
- VIV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
- The 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)1.05
PEG (5Y)N/A
EPS Next 2Y25.37%
EPS Next 3Y23.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.80%, VIV has a reasonable but not impressive dividend return.
- VIV's Dividend Yield is a higher than the industry average which is at 2.37.
- VIV's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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%
12.06
-0.36 (-2.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-23 2026-02-23/bmo
Inst Owners13.02%
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.33B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts75
Price Target14.66 (21.56%)
Short Float %1.39%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.29
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)-3.04%
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 | 17.23 | ||
| Fwd PE | 12.19 | ||
| P/S | 1.78 | ||
| P/FCF | 9.99 | ||
| P/OCF | 5.17 | ||
| P/B | 1.52 | ||
| P/tB | 4.97 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)0.7
EY5.8%
EPS(NY)0.99
Fwd EY8.2%
FCF(TTM)1.21
FCFY10.01%
OCF(TTM)2.33
OCFY19.36%
SpS6.79
BVpS7.93
TBVpS2.42
PEG (NY)1.05
PEG (5Y)N/A
Graham Number11.18
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 | 1.95 |
F-Score9
WACC14.13%
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 5Y16.15%
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 5Y5.74%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year181.75%
EBIT Next 3Y48.97%
EBIT Next 5Y29%
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 6 / 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 17.23 and the Price/Book (PB) ratio is 1.52.
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.