TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIV - US87936R2058 - ADR
12.35 USD
+0.19 (+1.56%)
12.35 USD
0 (0%)
VIV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 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
In the past year VIV was profitable.
In the past year VIV had a positive cash flow from operations.
Each year in the past 5 years VIV has been profitable.
In the past 5 years VIV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VIV (4.89%) is better than 71.05% of its industry peers.
VIV has a Return On Equity of 8.85%. This is in the better half of the industry: VIV outperforms 71.05% of its industry peers.
With an excellent Return On Invested Capital value of 7.84%, VIV belongs to the best of the industry, outperforming 86.84% 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 6.52%.
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 73.68% 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 60.53% 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's Gross Margin of 44.27% is on the low side compared to the rest of the industry. VIV is outperformed by 63.16% 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
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 1.94. 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.
Looking at the Altman-Z score, with a value of 1.94, VIV belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
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.
VIV has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. VIV outperforms 94.74% 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 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.55
WACC14.26%
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 (1.02) which is in line with its industry peers.
A Quick Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, VIV perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 |
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 6.88%.
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)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 12.67% 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 5.67% yearly.
EPS Next Y0.65%
EPS Next 2Y16.64%
EPS Next 3Y17.67%
EPS Next 5Y12.67%
Revenue Next Year6.85%
Revenue Next 2Y6.42%
Revenue Next 3Y6.2%
Revenue Next 5Y5.67%
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 17.39 indicates a rather expensive valuation of VIV.
Based on the Price/Earnings ratio, VIV is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. VIV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.27, which indicates a correct valuation of VIV.
78.95% of the companies in the same industry are more expensive than VIV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, VIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VIV is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.09 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VIV does not grow enough to justify the current Price/Earnings ratio.
VIV has a very decent profitability rating, which may justify a higher PE ratio.
VIV's earnings are expected to grow with 17.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)26.94
PEG (5Y)N/A
EPS Next 2Y16.64%
EPS Next 3Y17.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, VIV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.60, VIV pays a bit more dividend than its industry peers.
VIV's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 2Y16.64%
EPS Next 3Y17.67%
12.35
+0.19 (+1.56%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.09%
Inst Owner Change0.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.79B
Revenue(TTM)58.57B
Net Income(TTM)6.05B
Analysts78
Price Target15.12 (22.43%)
Short Float %1.55%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)3.86%
PT rev (3m)10.32%
EPS NQ rev (1m)-10.4%
EPS NQ rev (3m)-16.2%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 12.27 | ||
| P/S | 1.79 | ||
| P/FCF | 10.09 | ||
| P/OCF | 5.22 | ||
| P/B | 1.54 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)0.71
EY5.75%
EPS(NY)1.01
Fwd EY8.15%
FCF(TTM)1.22
FCFY9.91%
OCF(TTM)2.37
OCFY19.16%
SpS6.88
BVpS8.04
TBVpS2.46
PEG (NY)26.94
PEG (5Y)N/A
Graham Number11.33
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
WACC14.26%
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)-21.55%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%15.69%
EPS Next Y0.65%
EPS Next 2Y16.64%
EPS Next 3Y17.67%
EPS Next 5Y12.67%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.48%
Revenue Next Year6.85%
Revenue Next 2Y6.42%
Revenue Next 3Y6.2%
Revenue Next 5Y5.67%
EBIT growth 1Y9.97%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year182.09%
EBIT Next 3Y48.98%
EBIT Next 5Y28.91%
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 grow by 0.65% in the next year.