TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
NYSE:VIV - New York Stock Exchange, Inc. - US87936R2058 - ADR - Currency: USD
Taking everything into account, VIV scores 5 out of 10 in our fundamental rating. VIV was compared to 32 industry peers in the Diversified Telecommunication Services industry. VIV has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on VIV.
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
VIV has a Return On Assets of 4.51%. This is in the better half of the industry: VIV outperforms 71.88% of its industry peers.
Looking at the Return On Equity, with a value of 8.39%, VIV is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
VIV's Return On Invested Capital of 7.32% is fine compared to the rest of the industry. VIV outperforms 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIV is in line with the industry average of 7.13%.
The last Return On Invested Capital (7.32%) for VIV is above the 3 year average (6.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.39% | ||
| ROIC | 7.32% |
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 10.07%, VIV is doing good in the industry, outperforming 75.00% of the companies in the same industry.
VIV's Profit Margin has declined in the last couple of years.
VIV's Operating Margin of 14.93% is fine compared to the rest of the industry. VIV outperforms 68.75% 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's Gross Margin of 43.78% is on the low side compared to the rest of the industry. VIV is outperformed by 68.75% of its industry peers.
In the last couple of years the Gross Margin of VIV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.93% | ||
| PM (TTM) | 10.07% | ||
| GM | 43.78% |
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.
Compared to 1 year ago, VIV has less shares outstanding
The number of shares outstanding for VIV has been increased compared to 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 1.76. This is a bad value and indicates that VIV is not financially healthy and even has some risk of bankruptcy.
VIV's Altman-Z score of 1.76 is amongst the best of the industry. VIV outperforms 84.38% of its industry peers.
VIV has a debt to FCF ratio of 2.00. This is a very positive value and a sign of high solvency as it would only need 2.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.00, VIV belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
VIV has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.20, VIV belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.45
WACC16.31%
2.3 Liquidity
A Current Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
With a Current ratio value of 0.96, VIV is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
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.
The Quick ratio of VIV (0.92) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for VIV have decreased strongly by -31.33% 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.
Looking at the last year, VIV shows a small growth in Revenue. The Revenue has grown by 7.11% in the last year.
The Revenue has been growing slightly by 4.76% on average over the past years.
EPS 1Y (TTM)-31.33%
EPS 3Y-14.4%
EPS 5Y-10.63%
EPS Q2Q%-39.81%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.23%
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 13.40% on average per year.
The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y55.26%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
EPS Next 5Y13.4%
Revenue Next Year5.52%
Revenue Next 2Y5.35%
Revenue Next 3Y5.57%
Revenue Next 5Y5.01%
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 14.81, which indicates a correct valuation of VIV.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
VIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 7.05 indicates a rather cheap valuation of VIV.
100.00% of the companies in the same industry are more expensive than VIV, based on the Price/Forward Earnings ratio.
VIV is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 93.75% of the companies in the same industry.
VIV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 4.82 |
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.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y37.75%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
VIV's Dividend Yield is comparable with the industry average which is at 5.16.
VIV's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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 44.35% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.35%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
11.4
+0.29 (+2.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners9.26%
Inst Owner Change1.55%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.47B
Analysts80
Price Target11.17 (-2.02%)
Short Float %1.04%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.28
Dividend Growth(5Y)-26.73%
DP44.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.31%
Min EPS beat(2)-2.41%
Max EPS beat(2)1.8%
EPS beat(4)2
Avg EPS beat(4)-1.38%
Min EPS beat(4)-11.06%
Max EPS beat(4)6.14%
EPS beat(8)5
Avg EPS beat(8)2.86%
EPS beat(12)6
Avg EPS beat(12)1.82%
EPS beat(16)9
Avg EPS beat(16)4.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-2.62%
Revenue beat(8)0
Avg Revenue beat(8)-2.53%
Revenue beat(12)1
Avg Revenue beat(12)-2.05%
Revenue beat(16)1
Avg Revenue beat(16)-2.17%
PT rev (1m)5.12%
PT rev (3m)6.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.74%
EPS NY rev (1m)0%
EPS NY rev (3m)79.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 7.05 | ||
| P/S | 1.78 | ||
| P/FCF | 9.82 | ||
| P/OCF | 5.05 | ||
| P/B | 1.49 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 4.82 |
EPS(TTM)0.77
EY6.75%
EPS(NY)1.62
Fwd EY14.18%
FCF(TTM)1.16
FCFY10.18%
OCF(TTM)2.26
OCFY19.81%
SpS6.39
BVpS7.67
TBVpS2.27
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.39% | ||
| ROCE | 8.48% | ||
| ROIC | 7.32% | ||
| ROICexc | 7.97% | ||
| ROICexgc | 16.72% | ||
| OM | 14.93% | ||
| PM (TTM) | 10.07% | ||
| GM | 43.78% | ||
| FCFM | 18.17% |
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%
ROICexcg growth 3Y16.7%
ROICexcg 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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 66.94% | ||
| Cap/Sales | 17.18% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 87.08% | ||
| Profit Quality | 180.4% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.76 |
F-Score7
WACC16.31%
ROIC/WACC0.45
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)-31.33%
EPS 3Y-14.4%
EPS 5Y-10.63%
EPS Q2Q%-39.81%
EPS Next Y55.26%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
EPS Next 5Y13.4%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.23%
Revenue Next Year5.52%
Revenue Next 2Y5.35%
Revenue Next 3Y5.57%
Revenue Next 5Y5.01%
EBIT growth 1Y12.38%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year178.77%
EBIT Next 3Y47.87%
EBIT Next 5Y28.41%
FCF growth 1Y4.56%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y4.1%
OCF growth 3Y3.22%
OCF growth 5Y2.32%