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Brazilian (BOVESPA) Telecom Sector Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies14
- 7D-0.5%
- 3M6.9%
- 1Y8.2%
- YTD-4.0%
Over the last 7 days, the Telecom industry has dropped 4.0%, driven by declines from every company within the industry. This takes the industry's 12 month performance to a gain of 6.3%.
Sector Valuation and Performance
Has the Brazilian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | R$137.0b | R$64.8b | R$7.7b | 26.3x |
| Tue, 02 Nov 2021 | R$133.6b | R$73.4b | R$3.6b | 33.7x |
| Thu, 30 Sep 2021 | R$133.5b | R$73.0b | R$2.9b | 35.9x |
| Sat, 28 Aug 2021 | R$140.3b | R$73.0b | R$2.9b | 46.7x |
| Sun, 04 Jul 2021 | R$131.6b | R$71.9b | R$2.8b | 35.8x |
| Wed, 07 Apr 2021 | R$131.1b | R$70.9b | -R$2,142,778,000.00 | 31.9x |
| Sat, 09 Jan 2021 | R$134.6b | R$70.2b | -R$4,672,667,000.00 | 17.8x |
| Fri, 02 Oct 2020 | R$90.3b | R$48.5b | -R$10,234,764,000.00 | 15.5x |
| Mon, 06 Jul 2020 | R$97.4b | R$49.1b | -R$13,679,169,000.00 | 11.6x |
| Thu, 09 Apr 2020 | R$90.3b | R$52.6b | -R$11,942,706,000.00 | 11.4x |
| Wed, 01 Jan 2020 | R$103.0b | R$55.5b | -R$5,208,659,000.00 | 17.5x |
| Sat, 05 Oct 2019 | R$98.3b | R$65.5b | -R$5,300,950,000.00 | 14.3x |
| Tue, 09 Jul 2019 | R$91.4b | R$65.7b | R$1.4b | 8.4x |
| Mon, 01 Apr 2019 | R$89.9b | R$66.0b | R$3.5b | 7.4x |
| Thu, 03 Jan 2019 | R$80.5b | R$66.5b | R$33.3b | 8.4x |
PE Ratio
8.4x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 26.1x which is higher than its 3-year average PE of 19.5x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Communication Services industry have declined 39% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Brazilian Telecom sector?
| Interactive Media and Services | 2.33% | |
| Telecom Services and Carriers | -0.55% | |
| Wireless Telecom | -0.72% | |
| Media | -3.38% | |
| Entertainment | -6.26% | |
Industry PE: Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 26.8x. This is likely because analysts are expecting annual earnings growth of 9.1%, which is higher than its past year's earnings decline of 9.8% per year. Meanwhile, investors are most pessimistic about the Media industry, which is trading below its 3-year average of 11.2x.
Forecasted Growth: Analysts are most optimistic on the Interactive Media and Services industry, expecting annual earnings growth of 57% over the next 5 years. This is better than its past earnings decline of 66% per year. Meanwhile, the Telecom Services and Carriers industry is expected to see its earnings grow by 9.1% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| CASH3 Méliuz | 7.5%+R$192.8m | 100.0% | PS13.2x | |
| FIQE3 Unifique Telecomunicações | 3.0%+R$68.8m | n/a | PE33.1x | |
| MOSI3 Mosaico Tecnologia ao Consumidor | 2.9%+R$32.9m | n/a | PE36x | |
| VIVT3 Telefônica Brasil | 0.02%+R$16.8m | 16.1% | PE17.4x | |
| SHOW3 T4F Entretenimento | 3.4%+R$7.4m | 7.3% | PS18.9x |
