TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
12.77 USD
+0.09 (+0.71%)
VIV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 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
VIV had positive earnings in the past year.
In the past year VIV had a positive cash flow from operations.
Each year in the past 5 years VIV has been profitable.
In the past 5 years VIV always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.89%, VIV is doing good in the industry, outperforming 72.22% of the companies in the same industry.
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.
VIV has a better Return On Invested Capital (7.84%) than 83.33% 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 6.44%.
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 75.00% of the companies in the same industry.
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 72.22% of the companies in the same industry.
VIV's Operating Margin has been stable in the last couple of years.
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.
The debt/assets ratio for VIV is higher compared to a year ago.
2.2 Solvency
VIV has an Altman-Z score of 1.99. 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 better Altman-Z score (1.99) than 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 better Debt to FCF ratio (1.74) than 94.44% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
The Debt to Equity ratio of VIV (0.19) is better than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.55
WACC14.33%
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 (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.
With a Quick ratio value of 0.96, VIV perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
| 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.
VIV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.63% yearly.
The Revenue has been growing slightly by 6.88% in the past year.
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
VIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.68% yearly.
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.
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 17.99, which indicates a rather expensive current valuation of VIV.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VIV to the average of the S&P500 Index (25.07), we can say VIV is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.09, the valuation of VIV can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 77.78% of the companies listed in the same industry.
VIV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
VIV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 4.99 |
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
With a Yearly Dividend Yield of 1.86%, VIV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.85, VIV pays a bit more dividend than its industry peers.
VIV's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| 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
42.62% of the earnings are spent on dividend by VIV. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y15.06%
EPS Next 3Y16.45%
NYSE:VIV (11/21/2025, 3:37:08 PM)
12.77
+0.09 (+0.71%)
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 Cap20.46B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target14.65 (14.72%)
Short Float %1.54%
Short Ratio7.33
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 | 17.99 | ||
| Fwd PE | 13.09 | ||
| P/S | 1.86 | ||
| P/FCF | 10.47 | ||
| P/OCF | 5.42 | ||
| P/B | 1.59 | ||
| P/tB | 5.22 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)0.71
EY5.56%
EPS(NY)0.98
Fwd EY7.64%
FCF(TTM)1.22
FCFY9.55%
OCF(TTM)2.36
OCFY18.46%
SpS6.86
BVpS8.01
TBVpS2.45
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.31
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 | 1.99 |
F-Score9
WACC14.33%
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 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.