TELEFONICA BRASIL-ADR (VIV)
US87936R2058 - ADR
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VIV was profitable.
VIV had a positive operating cash flow in the past year.
Each year in the past 5 years VIV has been profitable.
Each year in the past 5 years VIV had a positive operating cash flow.
1.2 Ratios
VIV's Return On Assets of 4.17% is amongst the best of the industry. VIV outperforms 85.71% of its industry peers.
VIV has a Return On Equity of 7.23%. This is in the better half of the industry: VIV outperforms 68.57% of its industry peers.
With a decent Return On Invested Capital value of 5.92%, VIV is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIV is in line with the industry average of 5.67%.
The last Return On Invested Capital (5.92%) for VIV is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 7.23% | ||
| ROIC | 5.92% |
ROA(3y)4.33%
ROA(5y)4.4%
ROE(3y)7.37%
ROE(5y)7.22%
ROIC(3y)4.9%
ROIC(5y)5.14%
1.3 Margins
VIV has a Profit Margin of 9.65%. This is in the better half of the industry: VIV outperforms 77.14% of its industry peers.
In the last couple of years the Profit Margin of VIV has declined.
The Operating Margin of VIV (13.11%) is better than 62.86% 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 43.54% is on the low side compared to the rest of the industry. VIV is outperformed by 74.29% of its industry peers.
VIV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.11% | ||
| PM (TTM) | 9.65% | ||
| GM | 43.54% |
OM growth 3Y3.08%
OM growth 5Y0.57%
PM growth 3Y-4.44%
PM growth 5Y-14.02%
GM growth 3Y-2.78%
GM growth 5Y-3.35%
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.
Compared to 5 years ago, VIV has less shares outstanding
Compared to 1 year ago, VIV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that VIV is in the distress zone and has some risk of bankruptcy.
VIV's Altman-Z score of 1.64 is amongst the best of the industry. VIV outperforms 88.57% of its industry peers.
The Debt to FCF ratio of VIV is 1.88, which is an excellent value as it means it would take VIV, only 1.88 years of fcf income to pay off all of its debts.
VIV has a Debt to FCF ratio of 1.88. This is amongst the best in the industry. VIV outperforms 91.43% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that VIV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, VIV belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.43
WACC13.86%
2.3 Liquidity
A Current Ratio of 0.96 indicates that VIV may have some problems paying its short term obligations.
VIV has a Current ratio of 0.96. This is comparable to the rest of the industry: VIV outperforms 42.86% of its industry peers.
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.
VIV has a Quick ratio of 0.92. This is comparable to the rest of the industry: VIV outperforms 45.71% 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 has grown by an impressive 24.08% over the past year.
The earnings per share for VIV have been decreasing by -10.52% on average. This is quite bad
The Revenue has grown by 8.45% in the past year. This is quite good.
VIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.69% yearly.
EPS 1Y (TTM)24.08%
EPS 3Y3.01%
EPS 5Y-10.52%
EPS growth Q2Q42.65%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y6.5%
Revenue growth 5Y3.69%
Revenue growth Q2Q6.92%
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 16.26% on average per year.
VIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.23% yearly.
EPS Next Y7.9%
EPS Next 2Y11.47%
EPS Next 3Y17.91%
EPS Next 5Y16.26%
Revenue Next Year6.36%
Revenue Next 2Y5.64%
Revenue Next 3Y5.3%
Revenue Next 5Y7.23%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.86, VIV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of VIV indicates a somewhat cheap valuation: VIV is cheaper than 65.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, VIV is valued a bit cheaper.
VIV is valuated correctly with a Price/Forward Earnings ratio of 15.58.
Based on the Price/Forward Earnings ratio, VIV is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
VIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
VIV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIV is cheaper than 85.71% of the companies in the same industry.
74.29% of the companies in the same industry are more expensive than VIV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.48 | ||
| EV/EBITDA | 4.76 |
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.
VIV's earnings are expected to grow with 17.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y11.47%
EPS Next 3Y17.91%
5. Dividend
5.1 Amount
VIV has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
VIV's Dividend Yield is comparable with the industry average which is at 4.98.
With a Dividend Yield of 1.02, VIV pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of VIV decreases each year by -1.15%.
VIV has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VIV decreased recently.
Dividend Growth(5Y)-1.15%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VIV pays out 76.20% of its income as dividend. This is not a sustainable payout ratio.
DP76.2%
EPS Next 2Y11.47%
EPS Next 3Y17.91%
TELEFONICA BRASIL-ADR
NYSE:VIV (5/3/2024, 7:24:54 PM)
After market: 9.72 -0.23 (-2.31%)9.95
+0.31 (+3.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 15.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 7.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.11% | ||
| PM (TTM) | 9.65% | ||
| GM | 43.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.08%
EPS 3Y3.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.45%
Revenue growth 3Y6.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y