TELEFONICA BRASIL-ADR (VIV) Stock Fundamental Analysis
NYSE:VIV - New York Stock Exchange, Inc. - US87936R2058 - ADR - Currency: USD
Taking everything into account, VIV scores 5 out of 10 in our fundamental rating. VIV was compared to 35 industry peers in the Diversified Telecommunication Services industry. VIV has an average financial health and profitability rating. VIV is valued correctly, but it does not seem to be growing.
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.
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
The Return On Assets of VIV (4.61%) is better than 74.29% of its industry peers.
VIV has a better Return On Equity (8.57%) than 65.71% 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 7.11%.
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 68.57% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
With a decent Operating Margin value of 14.99%, VIV is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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: 71.43% 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.
The number of shares outstanding for VIV has been reduced compared to 1 year ago.
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 1.89 indicates that VIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VIV (1.89) is better than 85.71% of its industry peers.
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.
VIV's Debt to FCF ratio of 1.95 is amongst the best of the industry. VIV outperforms 91.43% 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's Debt to Equity ratio of 0.20 is amongst the best of the industry. VIV outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.52
WACC14.29%
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's Current ratio of 0.98 is on the low side compared to the rest of the industry. VIV is outperformed by 62.86% 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 62.86% of its industry peers.
| 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 -42.83% in the last year.
The earnings per share for VIV have been decreasing by -10.63% on average. This is quite bad
Looking at the last year, VIV shows a small growth in Revenue. The Revenue has grown by 7.03% in the last 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)-42.83%
EPS 3Y-14.4%
EPS 5Y-10.63%
EPS Q2Q%-43.24%
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 small growth in Earnings Per Share. The EPS will grow by 7.04% on average per year.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y55.26%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
EPS Next 5Y7.04%
Revenue Next Year6.68%
Revenue Next 2Y6.22%
Revenue Next 3Y5.92%
Revenue Next 5Y4.4%
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
A Price/Earnings ratio of 18.51 indicates a rather expensive valuation of VIV.
65.71% of the companies in the same industry are more expensive than VIV, based on the Price/Earnings ratio.
VIV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of VIV can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIV indicates a rather cheap valuation: VIV is cheaper than 97.14% 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 (35.34), we can say VIV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 7.55 |
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.
VIV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.36 | ||
| EV/EBITDA | 5.07 |
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.
The decent profitability rating of VIV may justify a higher PE ratio.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y37.75%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.31, VIV pays a bit more dividend than its industry peers.
VIV's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of VIV decreases each year by -26.73%.
VIV has been paying a dividend for at least 10 years, so it has 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 2Y37.75%
EPS Next 3Y8.25%
12.4
+0.1 (+0.81%)
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 Cap20.00B
Analysts81.11
Price Target13.43 (8.31%)
Short Float %1.25%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)20.17%
PT rev (3m)26.32%
EPS NQ rev (1m)7.1%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)0.19%
EPS NY rev (3m)99.48%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 7.55 | ||
| P/S | 1.87 | ||
| P/FCF | 10.36 | ||
| P/OCF | 5.35 | ||
| P/B | 1.59 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 5.07 |
EPS(TTM)0.67
EY5.4%
EPS(NY)1.64
Fwd EY13.25%
FCF(TTM)1.2
FCFY9.65%
OCF(TTM)2.32
OCFY18.69%
SpS6.62
BVpS7.81
TBVpS2.33
PEG (NY)0.33
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 | 1.89 |
F-Score8
WACC14.29%
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)-42.83%
EPS 3Y-14.4%
EPS 5Y-10.63%
EPS Q2Q%-43.24%
EPS Next Y55.26%
EPS Next 2Y37.75%
EPS Next 3Y8.25%
EPS Next 5Y7.04%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y8.24%
Revenue growth 5Y4.76%
Sales Q2Q%7.06%
Revenue Next Year6.68%
Revenue Next 2Y6.22%
Revenue Next 3Y5.92%
Revenue Next 5Y4.4%
EBIT growth 1Y8.11%
EBIT growth 3Y18.52%
EBIT growth 5Y5.9%
EBIT Next Year178.77%
EBIT Next 3Y47.87%
EBIT Next 5Y27.44%
FCF growth 1Y1.12%
FCF growth 3Y6.33%
FCF growth 5Y3.51%
OCF growth 1Y0.96%
OCF growth 3Y3.22%
OCF growth 5Y2.32%