TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
NYSE:VIV - New York Stock Exchange, Inc. - US87936R2058 - ADR - Currency: USD
Overall VIV gets a fundamental rating of 5 out of 10. We evaluated VIV against 31 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes VIV very considerable for value investing!
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.
VIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VIV has a better Return On Assets (4.35%) than 80.00% of its industry peers.
VIV has a better Return On Equity (7.80%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.23%, VIV belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIV is in line with the industry average of 5.65%.
The last Return On Invested Capital (7.23%) for VIV is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 7.8% | ||
| ROIC | 7.23% |
ROA(3y)4.33%
ROA(5y)4.4%
ROE(3y)7.37%
ROE(5y)7.22%
ROIC(3y)5.61%
ROIC(5y)5.57%
1.3 Margins
VIV has a Profit Margin of 9.83%. This is in the better half of the industry: VIV outperforms 73.33% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
VIV's Operating Margin of 15.08% is fine compared to the rest of the industry. VIV outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of VIV has grown nicely.
VIV has a Gross Margin of 44.11%. This is in the lower half of the industry: VIV underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of VIV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.08% | ||
| PM (TTM) | 9.83% | ||
| GM | 44.11% |
OM growth 3Y6.31%
OM growth 5Y2.44%
PM growth 3Y-4.44%
PM growth 5Y-14.02%
GM growth 3Y-2.78%
GM growth 5Y-3.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIV is destroying value.
Compared to 1 year ago, VIV has less shares outstanding
Compared to 5 years ago, VIV has less shares outstanding
Compared to 1 year ago, VIV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that VIV is in the distress zone and has some risk of bankruptcy.
VIV has a better Altman-Z score (1.64) than 86.67% of its industry peers.
VIV has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.95, VIV belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
VIV's Debt to Equity ratio of 0.19 is amongst the best of the industry. VIV outperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.48
WACC15.07%
2.3 Liquidity
A Current Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
VIV has a worse Current ratio (0.96) than 63.33% of its industry peers.
VIV has a Quick Ratio of 0.96. 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's Quick ratio of 0.91 is on the low side compared to the rest of the industry. VIV is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.91% over the past year.
The earnings per share for VIV have been decreasing by -10.52% on average. This is quite bad
VIV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
Measured over the past years, VIV shows a small growth in Revenue. The Revenue has been growing by 3.69% on average per year.
EPS 1Y (TTM)18.91%
EPS 3Y3.16%
EPS 5Y-10.52%
EPS Q2Q%14.61%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y6.5%
Revenue growth 5Y3.69%
Sales Q2Q%7.07%
3.2 Future
The Earnings Per Share is expected to grow by 18.56% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y16.67%
EPS Next 2Y18.99%
EPS Next 3Y16.86%
EPS Next 5Y18.56%
Revenue Next Year7.15%
Revenue Next 2Y6.76%
Revenue Next 3Y6.3%
Revenue Next 5Y8.41%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.56 indicates a correct valuation of VIV.
70.00% of the companies in the same industry are more expensive than VIV, based on the Price/Earnings ratio.
VIV is valuated rather cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.90, which indicates a very decent 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 73.33% of the companies listed in the same industry.
VIV is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
63.33% of the companies in the same industry are more expensive than VIV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
VIV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VIV has a very decent profitability rating, which may justify a higher PE ratio.
VIV's earnings are expected to grow with 16.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y18.99%
EPS Next 3Y16.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, VIV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.32, VIV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, VIV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of VIV decreases each year by -1.15%.
VIV has paid a dividend for at least 10 years, which is a reliable track record.
VIV has decreased its dividend recently.
Dividend Growth(5Y)-1.15%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VIV pays out 39.93% of its income as dividend. This is a sustainable payout ratio.
DP39.93%
EPS Next 2Y18.99%
EPS Next 3Y16.86%
TELEFONICA BRASIL-ADR
NYSE:VIV (1/27/2025, 11:35:30 AM)
8.715
+0.21 (+2.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners9.72%
Inst Owner Change1.33%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.21B
Analysts79.05
Price Target9.65 (10.73%)
Short Float %0.31%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend2.31
Dividend Growth(5Y)-1.15%
DP39.93%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.46%
Min EPS beat(2)-11.06%
Max EPS beat(2)6.14%
EPS beat(4)2
Avg EPS beat(4)-1.82%
Min EPS beat(4)-14.22%
Max EPS beat(4)11.87%
EPS beat(8)4
Avg EPS beat(8)1.44%
EPS beat(12)6
Avg EPS beat(12)3.94%
EPS beat(16)8
Avg EPS beat(16)1.4%
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-2.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-2.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-2.01%
Revenue beat(16)1
Avg Revenue beat(16)-2.17%
PT rev (1m)-3.53%
PT rev (3m)-7.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 11.9 | ||
| P/S | 1.53 | ||
| P/FCF | 8.52 | ||
| P/OCF | 4.39 | ||
| P/B | 1.22 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)0.56
EY6.43%
EPS(NY)0.73
Fwd EY8.41%
FCF(TTM)1.02
FCFY11.74%
OCF(TTM)1.99
OCFY22.8%
SpS5.69
BVpS7.17
TBVpS2.17
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 7.8% | ||
| ROCE | 8.29% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 16.12% | ||
| OM | 15.08% | ||
| PM (TTM) | 9.83% | ||
| GM | 44.11% | ||
| FCFM | 17.99% |
ROA(3y)4.33%
ROA(5y)4.4%
ROE(3y)7.37%
ROE(5y)7.22%
ROIC(3y)5.61%
ROIC(5y)5.57%
ROICexc(3y)5.87%
ROICexc(5y)5.84%
ROICexgc(3y)12.04%
ROICexgc(5y)11.64%
ROCE(3y)6.46%
ROCE(5y)6.4%
ROICexcg growth 3Y10.94%
ROICexcg growth 5Y2.6%
ROICexc growth 3Y8.66%
ROICexc growth 5Y2.87%
OM growth 3Y6.31%
OM growth 5Y2.44%
PM growth 3Y-4.44%
PM growth 5Y-14.02%
GM growth 3Y-2.78%
GM growth 5Y-3.35%
F-Score9
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 66.57% | ||
| Cap/Sales | 16.94% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 86.19% | ||
| Profit Quality | 183.03% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.64 |
F-Score9
WACC15.07%
ROIC/WACC0.48
Cap/Depr(3y)73.73%
Cap/Depr(5y)75.19%
Cap/Sales(3y)19.54%
Cap/Sales(5y)19.56%
Profit Quality(3y)186.83%
Profit Quality(5y)193.96%
High Growth Momentum
Growth
EPS 1Y (TTM)18.91%
EPS 3Y3.16%
EPS 5Y-10.52%
EPS Q2Q%14.61%
EPS Next Y16.67%
EPS Next 2Y18.99%
EPS Next 3Y16.86%
EPS Next 5Y18.56%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y6.5%
Revenue growth 5Y3.69%
Sales Q2Q%7.07%
Revenue Next Year7.15%
Revenue Next 2Y6.76%
Revenue Next 3Y6.3%
Revenue Next 5Y8.41%
EBIT growth 1Y19.18%
EBIT growth 3Y13.22%
EBIT growth 5Y6.22%
EBIT Next Year189.04%
EBIT Next 3Y47.51%
EBIT Next 5Y32.62%
FCF growth 1Y14.13%
FCF growth 3Y-3.36%
FCF growth 5Y23.84%
OCF growth 1Y4.3%
OCF growth 3Y-0.97%
OCF growth 5Y9.49%