TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
12.035 USD
+0.11 (+0.88%)
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 an average financial health and profitability rating. VIV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VIV had positive earnings in the past year.
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
VIV has a Return On Assets of 4.61%. This is in the better half of the industry: VIV outperforms 75.00% of its industry peers.
VIV's Return On Equity of 8.57% is fine compared to the rest of the industry. VIV outperforms 75.00% of its industry peers.
VIV has a better Return On Invested Capital (7.48%) than 80.56% 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 5.85%.
The 3 year average ROIC (6.41%) for VIV is below the current ROIC(7.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.57% | ||
| ROIC | 7.48% |
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
The Profit Margin of VIV (10.12%) is better than 77.78% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
VIV's Operating Margin of 14.99% is fine compared to the rest of the industry. VIV outperforms 69.44% 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 has a worse Gross Margin (44.00%) than 63.89% of its industry peers.
In the last couple of years the Gross Margin of VIV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.99% | ||
| PM (TTM) | 10.12% | ||
| GM | 44% |
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.
Compared to 1 year ago, VIV has less shares outstanding
VIV has more shares outstanding than it did 5 years ago.
VIV has a worse debt/assets ratio than last year.
2.2 Solvency
VIV has an Altman-Z score of 1.83. 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 1.83, VIV belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.95, VIV belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that VIV is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.20, VIV belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.53
WACC14.17%
2.3 Liquidity
VIV has a Current Ratio of 0.98. 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 Current ratio, with a value of 0.98, VIV is doing worse than 61.11% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that VIV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, VIV is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for VIV have decreased strongly by -21.55% 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.
VIV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.19%.
Measured over the past years, VIV shows a small growth in Revenue. The Revenue has been growing by 4.76% on average per year.
EPS 1Y (TTM)-21.55%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%15.69%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.48%
3.2 Future
The Earnings Per Share is expected to grow by 10.61% on average over the next years. This is quite good.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y-0.1%
EPS Next 2Y15.06%
EPS Next 3Y16.45%
EPS Next 5Y10.61%
Revenue Next Year6.85%
Revenue Next 2Y6.35%
Revenue Next 3Y6.02%
Revenue Next 5Y4.21%
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
Based on the Price/Earnings ratio of 17.19, the valuation of VIV can be described as rather expensive.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than 63.89% of the companies in the same industry.
VIV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.35, the valuation of VIV can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIV indicates a rather cheap valuation: VIV is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VIV to the average of the S&P500 Index (22.55), we can say VIV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 94.44% 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 | 9.95 | ||
| EV/EBITDA | 4.85 |
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 2.03%.
VIV's Dividend Yield is a higher than the industry average which is at 5.41.
VIV's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
44.23% of the earnings are spent on dividend by VIV. This is a bit on the high side, but may be sustainable.
DP44.23%
EPS Next 2Y15.06%
EPS Next 3Y16.45%
NYSE:VIV (11/3/2025, 2:54:47 PM)
12.035
+0.11 (+0.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change2.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.29B
Revenue(TTM)55.85B
Net Income(TTM)5.83B
Analysts78
Price Target14.55 (20.9%)
Short Float %1.58%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.29
Dividend Growth(5Y)-26.73%
DP44.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.16%
Min EPS beat(2)-5.9%
Max EPS beat(2)-2.41%
EPS beat(4)2
Avg EPS beat(4)-0.09%
Min EPS beat(4)-5.9%
Max EPS beat(4)6.14%
EPS beat(8)4
Avg EPS beat(8)-0.55%
EPS beat(12)6
Avg EPS beat(12)4.2%
EPS beat(16)8
Avg EPS beat(16)3.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-2.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.66%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)1
Avg Revenue beat(16)-2.12%
PT rev (1m)4.41%
PT rev (3m)22.6%
EPS NQ rev (1m)-4.92%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-45.17%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 12.35 | ||
| P/S | 1.8 | ||
| P/FCF | 9.95 | ||
| P/OCF | 5.14 | ||
| P/B | 1.52 | ||
| P/tB | 5.1 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)0.7
EY5.82%
EPS(NY)0.97
Fwd EY8.09%
FCF(TTM)1.21
FCFY10.05%
OCF(TTM)2.34
OCFY19.46%
SpS6.69
BVpS7.89
TBVpS2.36
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.57% | ||
| ROCE | 8.67% | ||
| ROIC | 7.48% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 17.56% | ||
| OM | 14.99% | ||
| PM (TTM) | 10.12% | ||
| GM | 44% | ||
| FCFM | 18.08% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 65.88% | ||
| Cap/Sales | 16.94% | ||
| Interest Coverage | 4.07 | ||
| Cash Conversion | 86.04% | ||
| Profit Quality | 178.75% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.83 |
F-Score8
WACC14.17%
ROIC/WACC0.53
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 5Y10.61%
Revenue 1Y (TTM)7.19%
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 5Y4.21%
EBIT growth 1Y8.11%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year182.4%
EBIT Next 3Y48.46%
EBIT Next 5Y27.21%
FCF growth 1Y1.12%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y0.96%
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 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 financial health of TELEFONICA BRASIL-ADR (VIV) stock?
The financial health rating of TELEFONICA BRASIL-ADR (VIV) is 5 / 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.