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. VIV has an average financial health and profitability rating. 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.
VIV had a positive operating cash flow in the past year.
In the past 5 years VIV has always been profitable.
In the past 5 years VIV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.35%, VIV is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Equity value of 7.80%, VIV is doing good in the industry, outperforming 66.67% of the companies in the same industry.
VIV has a Return On Invested Capital of 7.23%. This is amongst the best in the industry. VIV outperforms 83.33% 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 5.71%.
The 3 year average ROIC (5.61%) for VIV is below the current ROIC(7.23%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.83%, VIV is in the better half of the industry, outperforming 80.00% 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 15.08%, VIV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 70.00% of its industry peers.
VIV's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VIV is destroying value.
Compared to 1 year ago, VIV has less shares outstanding
Compared to 5 years ago, VIV has less shares outstanding
The debt/assets ratio for VIV has been reduced compared to a year ago.
2.2 Solvency
VIV has an Altman-Z score of 1.70. This is a bad value and indicates that VIV is not financially healthy and even has some risk of bankruptcy.
VIV has a Altman-Z score of 1.70. This is amongst the best in the industry. VIV outperforms 86.67% of its industry peers.
The Debt to FCF ratio of VIV is 1.95, which is an excellent value as it means it would take VIV, only 1.95 years of fcf income to pay off all of its debts.
VIV's Debt to FCF ratio of 1.95 is amongst the best of the industry. VIV outperforms 93.33% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that VIV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, VIV belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.48
WACC15.05%
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: 63.33% 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.
Looking at the Quick ratio, with a value of 0.91, VIV is doing worse than 63.33% of the companies in the same industry.
| 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.
Measured over the past years, VIV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.52% on average per year.
Looking at the last year, VIV shows a small growth in Revenue. The Revenue has grown by 6.98% in the last year.
VIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.69% yearly.
EPS 1Y (TTM)18.91%
EPS 3Y3.24%
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
Based on estimates for the next years, VIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.46% on average per year.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.40% yearly.
EPS Next Y15.86%
EPS Next 2Y18.82%
EPS Next 3Y18.3%
EPS Next 5Y17.46%
Revenue Next Year7.15%
Revenue Next 2Y6.8%
Revenue Next 3Y6.4%
Revenue Next 5Y7.4%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.04, VIV is valued correctly.
66.67% of the companies in the same industry are more expensive than VIV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VIV to the average of the S&P500 Index (29.36), we can say VIV is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.48, the valuation of VIV can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VIV is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VIV to the average of the S&P500 Index (22.65), we can say VIV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VIV is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 4.47 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as VIV's earnings are expected to grow with 18.30% in the coming years.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y18.82%
EPS Next 3Y18.3%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.81, VIV has a dividend in line with its industry peers.
With a Dividend Yield of 1.36, VIV pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of VIV decreases each year by -1.15%.
VIV has been paying a dividend for at least 10 years, so it has 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
39.93% of the earnings are spent on dividend by VIV. This is a low number and sustainable payout ratio.
DP39.93%
EPS Next 2Y18.82%
EPS Next 3Y18.3%
8.57
-0.64 (-6.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners9.76%
Inst Owner Change-95.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.94B
Analysts81.05
Price Target10.09 (17.74%)
Short Float %0.45%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend2.31
Dividend Growth(5Y)-1.15%
DP39.93%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)4.59%
PT rev (3m)-4.47%
EPS NQ rev (1m)-5%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 11.48 | ||
| P/S | 1.47 | ||
| P/FCF | 8.2 | ||
| P/OCF | 4.22 | ||
| P/B | 1.17 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 4.47 |
EPS(TTM)0.57
EY6.65%
EPS(NY)0.75
Fwd EY8.71%
FCF(TTM)1.05
FCFY12.2%
OCF(TTM)2.03
OCFY23.69%
SpS5.81
BVpS7.32
TBVpS2.21
PEG (NY)0.95
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 | 1.7 |
F-Score9
WACC15.05%
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 3Y3.24%
EPS 5Y-10.52%
EPS Q2Q%14.61%
EPS Next Y15.86%
EPS Next 2Y18.82%
EPS Next 3Y18.3%
EPS Next 5Y17.46%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y6.5%
Revenue growth 5Y3.69%
Sales Q2Q%7.07%
Revenue Next Year7.15%
Revenue Next 2Y6.8%
Revenue Next 3Y6.4%
Revenue Next 5Y7.4%
EBIT growth 1Y19.18%
EBIT growth 3Y13.22%
EBIT growth 5Y6.22%
EBIT Next Year189.04%
EBIT Next 3Y47.51%
EBIT Next 5Y31.39%
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%