TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
13.11 USD
-0.09 (-0.68%)
13.11 USD
0 (0%)
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. VIV has only an average score on both its financial health and profitability. VIV is not valued too expensively and it also shows a decent growth rate.
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.
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
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.
With a decent Return On Equity value of 8.85%, VIV is doing good in the industry, outperforming 72.22% of the companies in the same industry.
VIV has a Return On Invested Capital of 7.84%. This is amongst the best in the industry. VIV outperforms 83.33% 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 6.45%.
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 75.00% of the companies in the same industry.
VIV's Profit Margin has declined in the last couple of years.
VIV has a better Operating Margin (15.52%) than 72.22% 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 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.
Compared to 1 year ago, VIV has less shares outstanding
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 2.03. 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.
Looking at the Altman-Z score, with a value of 2.03, VIV belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of VIV is 1.74, which is an excellent value as it means it would take VIV, only 1.74 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.74, VIV belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
VIV has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
VIV's Debt to Equity ratio of 0.19 is amongst the best of the industry. VIV outperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.54
WACC14.41%
2.3 Liquidity
A Current Ratio of 1.02 indicates that VIV should not have too much problems paying its short term obligations.
VIV has a Current ratio of 1.02. This is comparable to the rest of the industry: VIV outperforms 47.22% 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.
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
VIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.55%.
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.
The Revenue has been growing slightly by 4.76% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.68% on average over the next years. This is quite good.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VIV is valuated rather expensively with a Price/Earnings ratio of 18.46.
Compared to the rest of the industry, the Price/Earnings ratio of VIV is on the same level as its industry peers.
When comparing the Price/Earnings ratio of VIV to the average of the S&P500 Index (25.89), we can say VIV is valued slightly cheaper.
VIV is valuated correctly with a Price/Forward Earnings ratio of 13.32.
VIV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VIV is cheaper than 77.78% of the companies 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 13.32 |
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 94.44% of the companies listed 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 | 10.65 | ||
| EV/EBITDA | 5.13 |
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
VIV has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
VIV's Dividend Yield is a higher than the industry average which is at 5.54.
Compared to an average S&P500 Dividend Yield of 2.36, VIV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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 2Y15.06%
EPS Next 3Y16.45%
13.11
-0.09 (-0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change2.87%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.01B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target14.55 (10.98%)
Short Float %1.58%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)2.84%
PT rev (3m)8.39%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-16.24%
EPS NY rev (1m)-1.58%
EPS NY rev (3m)-46.06%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 13.32 | ||
| P/S | 1.9 | ||
| P/FCF | 10.65 | ||
| P/OCF | 5.51 | ||
| P/B | 1.62 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 5.13 |
EPS(TTM)0.71
EY5.42%
EPS(NY)0.98
Fwd EY7.51%
FCF(TTM)1.23
FCFY9.39%
OCF(TTM)2.38
OCFY18.15%
SpS6.92
BVpS8.08
TBVpS2.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.36
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 | 2.03 |
F-Score9
WACC14.41%
ROIC/WACC0.54
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.