TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
NYSE:VIV - New York Stock Exchange, Inc. - US87936R2058 - ADR - Currency: USD
VIV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. VIV has only an average score on both its financial health and profitability. VIV scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
The Return On Assets of VIV (4.51%) is better than 69.70% of its industry peers.
VIV's Return On Equity of 8.39% is fine compared to the rest of the industry. VIV outperforms 63.64% of its industry peers.
VIV has a better Return On Invested Capital (7.32%) than 78.79% 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 7.13%.
The 3 year average ROIC (6.41%) for VIV is below the current ROIC(7.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.39% | ||
| ROIC | 7.32% |
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
Looking at the Profit Margin, with a value of 10.07%, VIV is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
VIV's Profit Margin has declined in the last couple of years.
The Operating Margin of VIV (14.93%) is better than 69.70% 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 Gross Margin of 43.78%. This is in the lower half of the industry: VIV underperforms 69.70% of its industry peers.
VIV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.93% | ||
| PM (TTM) | 10.07% | ||
| GM | 43.78% |
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.
Compared to 5 years ago, VIV has more shares outstanding
VIV has a worse debt/assets ratio than last year.
2.2 Solvency
VIV has an Altman-Z score of 1.73. This is a bad value and indicates that VIV is not financially healthy and even has some risk of bankruptcy.
VIV's Altman-Z score of 1.73 is amongst the best of the industry. VIV outperforms 84.85% of its industry peers.
VIV has a debt to FCF ratio of 2.00. This is a very positive value and a sign of high solvency as it would only need 2.00 years to pay back of all of its debts.
VIV has a better Debt to FCF ratio (2.00) than 87.88% of its industry peers.
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 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.45
WACC16.38%
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: 60.61% 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.
The Quick ratio of VIV (0.92) is worse than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for VIV have decreased strongly by -31.33% in the last year.
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.
VIV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.11%.
The Revenue has been growing slightly by 4.76% on average over the past years.
EPS 1Y (TTM)-31.33%
EPS 3Y-14.4%
EPS 5Y-10.63%
EPS Q2Q%-39.81%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.23%
3.2 Future
Based on estimates for the next years, VIV will show a very strong growth in Earnings Per Share. The EPS will grow by 35.43% on average per year.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y55.26%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
EPS Next 5Y35.43%
Revenue Next Year5.52%
Revenue Next 2Y5.35%
Revenue Next 3Y5.57%
Revenue Next 5Y5.62%
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
VIV is valuated correctly with a Price/Earnings ratio of 13.99.
Compared to the rest of the industry, the Price/Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 72.73% of the companies listed in the same industry.
VIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 6.67, which indicates a rather cheap 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 96.97% of the companies listed in the same industry.
VIV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIV is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
VIV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.28 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
VIV's 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.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y37.75%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.97%.
Compared to an average industry Dividend Yield of 4.99, VIV pays a bit more dividend than its industry peers.
VIV's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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
44.35% of the earnings are spent on dividend by VIV. This is a bit on the high side, but may be sustainable.
DP44.35%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
10.77
-0.12 (-1.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners9.26%
Inst Owner Change1.55%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.45B
Analysts80
Price Target10.76 (-0.09%)
Short Float %1.04%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.28
Dividend Growth(5Y)-26.73%
DP44.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.31%
Min EPS beat(2)-2.41%
Max EPS beat(2)1.8%
EPS beat(4)2
Avg EPS beat(4)-1.38%
Min EPS beat(4)-11.06%
Max EPS beat(4)6.14%
EPS beat(8)5
Avg EPS beat(8)2.86%
EPS beat(12)6
Avg EPS beat(12)1.82%
EPS beat(16)9
Avg EPS beat(16)4.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.66%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-2.62%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-2.62%
Revenue beat(8)0
Avg Revenue beat(8)-2.53%
Revenue beat(12)1
Avg Revenue beat(12)-2.05%
Revenue beat(16)1
Avg Revenue beat(16)-2.17%
PT rev (1m)1.26%
PT rev (3m)5.9%
EPS NQ rev (1m)-5.07%
EPS NQ rev (3m)-19.06%
EPS NY rev (1m)99.1%
EPS NY rev (3m)69.34%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 6.67 | ||
| P/S | 1.69 | ||
| P/FCF | 9.28 | ||
| P/OCF | 4.77 | ||
| P/B | 1.4 | ||
| P/tB | 4.76 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)0.77
EY7.15%
EPS(NY)1.62
Fwd EY15%
FCF(TTM)1.16
FCFY10.77%
OCF(TTM)2.26
OCFY20.96%
SpS6.39
BVpS7.67
TBVpS2.26
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 8.39% | ||
| ROCE | 8.48% | ||
| ROIC | 7.32% | ||
| ROICexc | 7.97% | ||
| ROICexgc | 16.72% | ||
| OM | 14.93% | ||
| PM (TTM) | 10.07% | ||
| GM | 43.78% | ||
| FCFM | 18.17% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 66.94% | ||
| Cap/Sales | 17.18% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 87.08% | ||
| Profit Quality | 180.4% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.73 |
F-Score7
WACC16.38%
ROIC/WACC0.45
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)-31.33%
EPS 3Y-14.4%
EPS 5Y-10.63%
EPS Q2Q%-39.81%
EPS Next Y55.26%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
EPS Next 5Y35.43%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%6.23%
Revenue Next Year5.52%
Revenue Next 2Y5.35%
Revenue Next 3Y5.57%
Revenue Next 5Y5.62%
EBIT growth 1Y12.38%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year178.77%
EBIT Next 3Y47.87%
EBIT Next 5Y29.16%
FCF growth 1Y4.56%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y4.1%
OCF growth 3Y3.22%
OCF growth 5Y2.32%