TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
12.67 USD
+0.2 (+1.6%)
12.71 USD
+0.04 (+0.32%)
We assign a fundamental rating of 5 out of 10 to VIV. VIV was compared to 35 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of VIV get a neutral evaluation. Nothing too spectacular is happening here. VIV has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years VIV has been profitable.
VIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VIV has a Return On Assets of 4.61%. This is in the better half of the industry: VIV outperforms 77.14% of its industry peers.
VIV's Return On Equity of 8.57% is fine compared to the rest of the industry. VIV outperforms 68.57% of its industry peers.
With a decent Return On Invested Capital value of 7.48%, VIV is doing good in the industry, outperforming 80.00% of the companies in the same industry.
VIV had an Average Return On Invested Capital over the past 3 years of 6.41%. This is in line with the industry average of 6.32%.
The last Return On Invested Capital (7.48%) for VIV is above the 3 year average (6.41%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 10.12%, VIV is doing good in the industry, outperforming 71.43% of the companies in the same industry.
VIV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.99%, VIV is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
VIV's Operating Margin has been stable in the last couple of years.
VIV's Gross Margin of 44.00% is on the low side compared to the rest of the industry. VIV is outperformed by 65.71% of its industry peers.
VIV's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for VIV has been reduced compared to 1 year ago.
The number of shares outstanding for VIV has been increased compared to 5 years ago.
VIV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
VIV has a Altman-Z score of 1.90. This is amongst the best in the industry. VIV outperforms 82.86% 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 has a better Debt to FCF ratio (1.95) than 94.29% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that VIV is not too dependend on debt financing.
The Debt to Equity ratio of VIV (0.20) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.52
WACC14.34%
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.
VIV has a Current ratio of 0.98. This is in the lower half of the industry: VIV underperforms 62.86% of its industry peers.
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 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
VIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.20%.
Measured over the past years, VIV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.63% on average per year.
The Revenue has been growing slightly by 7.03% in the past year.
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)-35.2%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%13.51%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%7.06%
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 10.97% on average per year.
Based on estimates for the next years, VIV will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y2.32%
EPS Next 2Y15.3%
EPS Next 3Y16.84%
EPS Next 5Y10.97%
Revenue Next Year6.88%
Revenue Next 2Y6.34%
Revenue Next 3Y6.03%
Revenue Next 5Y4.56%
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
A Price/Earnings ratio of 18.63 indicates a rather expensive valuation of VIV.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than 62.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, VIV is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.93 indicates a correct valuation of VIV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIV indicates a rather cheap valuation: VIV is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, VIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaper than 94.29% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 16.84% in the coming years.
PEG (NY)8.02
PEG (5Y)N/A
EPS Next 2Y15.3%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.61%.
VIV's Dividend Yield is a higher than the industry average which is at 5.03.
VIV's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 44.23% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.23%
EPS Next 2Y15.3%
EPS Next 3Y16.84%
12.67
+0.2 (+1.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners9.26%
Inst Owner Change-23.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.44B
Analysts80
Price Target13.94 (10.02%)
Short Float %1.7%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)3.82%
PT rev (3m)29.52%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-53.34%
EPS NY rev (1m)-44.56%
EPS NY rev (3m)-44.46%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 12.93 | ||
| P/S | 1.89 | ||
| P/FCF | 10.46 | ||
| P/OCF | 5.4 | ||
| P/B | 1.6 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)0.68
EY5.37%
EPS(NY)0.98
Fwd EY7.74%
FCF(TTM)1.21
FCFY9.56%
OCF(TTM)2.35
OCFY18.52%
SpS6.7
BVpS7.91
TBVpS2.36
PEG (NY)8.02
PEG (5Y)N/A
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%
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-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 | 1.9 |
F-Score8
WACC14.34%
ROIC/WACC0.52
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)-35.2%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%13.51%
EPS Next Y2.32%
EPS Next 2Y15.3%
EPS Next 3Y16.84%
EPS Next 5Y10.97%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%7.06%
Revenue Next Year6.88%
Revenue Next 2Y6.34%
Revenue Next 3Y6.03%
Revenue Next 5Y4.56%
EBIT growth 1Y8.11%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year178.77%
EBIT Next 3Y47.87%
EBIT Next 5Y27.63%
FCF growth 1Y1.12%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y0.96%
OCF growth 3Y3.22%
OCF growth 5Y2.32%