TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
USA - NYSE:VIV - US87936R2058 - ADR
12.01 USD
-0.41 (-3.3%)
12.25 USD
+0.24 (+2%)
We assign a fundamental rating of 5 out of 10 to VIV. VIV was compared to 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
VIV had positive earnings in the past year.
VIV had a positive operating cash flow in the past year.
VIV had positive earnings in each of the past 5 years.
In the past 5 years VIV always reported a positive cash flow from operatings.
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.
The Return On Equity of VIV (8.57%) is better than 66.67% of its industry peers.
VIV has a better Return On Invested Capital (7.48%) than 80.56% 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 6.38%.
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
VIV has a Profit Margin of 10.12%. This is in the better half of the industry: VIV outperforms 69.44% of its industry peers.
VIV's Profit Margin has declined in the last couple of years.
VIV has a Operating Margin of 14.99%. This is in the better half of the industry: VIV outperforms 69.44% of its industry peers.
VIV's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 44.00%, VIV is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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
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.
Compared to 1 year ago, VIV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.83 indicates that VIV is not a great score, but indicates 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.
Looking at the Debt to FCF ratio, with a value of 1.95, VIV belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
VIV has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
VIV has a Debt to Equity ratio of 0.20. This is amongst the best in the industry. VIV outperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.53
WACC14.19%
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.
The Current ratio of VIV (0.98) is worse than 63.89% of its industry peers.
VIV has a Quick 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.
The Quick ratio of VIV (0.95) is worse than 61.11% of its industry peers.
| 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%.
The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
The Revenue has been growing slightly by 7.03% in the past year.
VIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.76% yearly.
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
VIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.61% yearly.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y0.75%
EPS Next 2Y15.44%
EPS Next 3Y16.38%
EPS Next 5Y10.61%
Revenue Next Year6.86%
Revenue Next 2Y6.36%
Revenue Next 3Y6.02%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 17.66 indicates a rather expensive valuation of VIV.
Compared to the rest of the industry, the Price/Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.76. VIV is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.13 indicates a correct valuation of VIV.
83.33% of the companies in the same industry are more expensive than VIV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.21. VIV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 12.13 |
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.
VIV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.84 | ||
| EV/EBITDA | 4.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 16.38% in the coming years.
PEG (NY)23.49
PEG (5Y)N/A
EPS Next 2Y15.44%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, VIV has a reasonable but not impressive dividend return.
VIV's Dividend Yield is a higher than the industry average which is at 5.14.
Compared to the average S&P500 Dividend Yield of 2.44, VIV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 2Y15.44%
EPS Next 3Y16.38%
12.01
-0.41 (-3.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.25B
Analysts79
Price Target14.15 (17.82%)
Short Float %1.71%
Short Ratio7.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)3.28%
PT rev (3m)26.67%
EPS NQ rev (1m)3.8%
EPS NQ rev (3m)9.74%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-44.96%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 12.13 | ||
| P/S | 1.78 | ||
| P/FCF | 9.84 | ||
| P/OCF | 5.08 | ||
| P/B | 1.51 | ||
| P/tB | 5.04 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)0.68
EY5.66%
EPS(NY)0.99
Fwd EY8.24%
FCF(TTM)1.22
FCFY10.16%
OCF(TTM)2.36
OCFY19.69%
SpS6.75
BVpS7.97
TBVpS2.38
PEG (NY)23.49
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 | 1.83 |
F-Score8
WACC14.19%
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)-35.2%
EPS 3Y-19.2%
EPS 5Y-10.63%
EPS Q2Q%13.51%
EPS Next Y0.75%
EPS Next 2Y15.44%
EPS Next 3Y16.38%
EPS Next 5Y10.61%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%7.06%
Revenue Next Year6.86%
Revenue Next 2Y6.36%
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%