TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.68 USD
+0.62 (+5.14%)
12.68 USD
0 (0%)
Overall VIV gets a fundamental rating of 6 out of 10. We evaluated VIV against 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
- In the past year VIV was profitable.
- In the past year VIV had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 4.89%, VIV is doing good in the industry, outperforming 70.27% of the companies in the same industry.
- 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 has a better Return On Invested Capital (7.84%) than 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 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
- 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.
- VIV's Profit Margin has declined in the last couple of years.
- The Operating Margin of VIV (15.52%) is better than 62.16% of its industry peers.
- In the last couple of years the Operating Margin of VIV has remained more or less at the same level.
- The Gross Margin of VIV (44.27%) is worse than 62.16% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIV is destroying value.
- The number of shares outstanding for VIV has been reduced compared to 1 year ago.
- Compared to 5 years ago, VIV has more shares outstanding
- VIV has a worse debt/assets ratio than last year.
2.2 Solvency
- VIV has an Altman-Z score of 1.94. 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's Altman-Z score of 1.94 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.
- The Debt to FCF ratio of VIV (1.74) is better than 94.59% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
- VIV has a Debt to Equity ratio of 0.19. This is amongst the best in the industry. VIV outperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.55
WACC14.25%
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's Current ratio of 1.02 is in line compared to the rest of the industry. VIV outperforms 48.65% of its industry peers.
- 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.
- The Quick ratio of VIV (0.96) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- VIV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.68%, which is quite good.
- The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
- 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.
- Based on estimates for the next years, VIV will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
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
- 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.11 indicates a rather expensive valuation of VIV.
- VIV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIV is cheaper than 70.27% of the companies in the same industry.
- When comparing the Price/Earnings ratio of VIV to the average of the S&P500 Index (26.94), we can say VIV is valued slightly cheaper.
- A Price/Forward Earnings ratio of 12.78 indicates a correct valuation of VIV.
- Based on the Price/Forward Earnings ratio, VIV is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, VIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 91.89% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 4.8 |
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.
- VIV's earnings are expected to grow with 23.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y25.37%
EPS Next 3Y23.63%
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.
- Compared to an average industry Dividend Yield of 2.33, VIV pays a bit more dividend than its industry peers.
- VIV's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| 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 2Y25.37%
EPS Next 3Y23.63%
12.68
+0.62 (+5.14%)
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 Change0.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.32B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts75
Price Target14.66 (15.62%)
Short Float %1.37%
Short Ratio6.16
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-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)-11.25%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 12.78 | ||
| P/S | 1.86 | ||
| P/FCF | 10.47 | ||
| P/OCF | 5.41 | ||
| P/B | 1.59 | ||
| P/tB | 5.21 | ||
| EV/EBITDA | 4.8 |
EPS(TTM)0.7
EY5.52%
EPS(NY)0.99
Fwd EY7.83%
FCF(TTM)1.21
FCFY9.55%
OCF(TTM)2.34
OCFY18.47%
SpS6.81
BVpS7.96
TBVpS2.43
PEG (NY)1.1
PEG (5Y)N/A
Graham Number11.2
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 | 1.94 |
F-Score9
WACC14.25%
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 6 / 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 18.11 and the Price/Book (PB) ratio is 1.59.
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.