Is Telefônica Brasil (BVMF:VIVT3) A Risky Investment?
Nov 23
Brazilian (BOVESPA) Telecom Sector Analysis
UpdatedDec 03, 2022
DataAggregated Company Financials
Companies12
- 7D1.7%
- 3M-1.2%
- 1Y-19.3%
- YTD-13.5%
Over the last 7 days, the Telecom industry has risen 1.7%, driven by gains from Telefônica Brasil of 1.9%. In contrast, the industry has lost 19% in the last 12 months. As for the next few years, earnings are expected to grow by 24% per annum.
Sector Valuation and Performance
Has the Brazilian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 03 Dec 2022 | R$106.7b | R$72.9b | R$7.8b | 14.8x | 13.7x | 1.5x |
| Mon, 31 Oct 2022 | R$110.0b | R$71.0b | R$8.2b | 12.4x | 13.4x | 1.5x |
| Wed, 28 Sep 2022 | R$105.0b | R$69.9b | R$8.1b | 13.8x | 13x | 1.5x |
| Fri, 26 Aug 2022 | R$112.8b | R$69.7b | R$8.1b | 14.7x | 14x | 1.6x |
| Sun, 24 Jul 2022 | R$120.0b | R$67.0b | R$9.1b | 13x | 13.2x | 1.8x |
| Tue, 21 Jun 2022 | R$116.1b | R$67.0b | R$9.1b | 12.6x | 12.8x | 1.7x |
| Thu, 19 May 2022 | R$128.7b | R$66.4b | R$9.2b | 15.7x | 13.9x | 1.9x |
| Sat, 16 Apr 2022 | R$139.8b | R$65.9b | R$9.1b | 21.2x | 15.4x | 2.1x |
| Mon, 14 Mar 2022 | R$131.2b | R$65.2b | R$9.1b | 22.6x | 14.5x | 2x |
| Wed, 09 Feb 2022 | R$133.1b | R$64.8b | R$7.7b | 26.8x | 17.2x | 2.1x |
| Fri, 07 Jan 2022 | R$129.1b | R$64.8b | R$7.7b | 23.3x | 16.7x | 2x |
| Sun, 05 Dec 2021 | R$138.3b | R$64.8b | R$7.7b | 26.9x | 17.9x | 2.1x |
| Tue, 02 Nov 2021 | R$133.6b | R$73.4b | R$3.6b | 33.7x | 37.3x | 1.8x |
| Thu, 30 Sep 2021 | R$133.5b | R$73.0b | R$2.9b | 35.9x | 46.4x | 1.8x |
| Sat, 28 Aug 2021 | R$140.3b | R$73.0b | R$2.9b | 46.7x | 48.8x | 1.9x |
| Sun, 04 Jul 2021 | R$131.6b | R$71.9b | R$2.8b | 35.8x | 47.7x | 1.8x |
| Wed, 07 Apr 2021 | R$131.1b | R$70.9b | -R$2,142,778,000.00 | 31.9x | -61.2x | 1.9x |
| Sat, 09 Jan 2021 | R$134.6b | R$70.2b | -R$4,672,667,000.00 | 17.8x | -28.8x | 1.9x |
| Fri, 02 Oct 2020 | R$90.3b | R$48.5b | -R$10,234,764,000.00 | 15.5x | -8.8x | 1.9x |
| Mon, 06 Jul 2020 | R$97.4b | R$49.1b | -R$13,679,169,000.00 | 11.6x | -7.1x | 2x |
| Thu, 09 Apr 2020 | R$90.3b | R$52.6b | -R$11,942,706,000.00 | 11.4x | -7.6x | 1.7x |
| Wed, 01 Jan 2020 | R$103.0b | R$55.5b | -R$5,208,659,000.00 | 17.5x | -19.8x | 1.9x |
Price to Earnings Ratio
-19x
Current Industry PE
- Investors are pessimistic on the Brazilian Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 13.7x which is higher than its 3-year average PE of -0.27x.
- The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 1.5x.
Past Earnings Growth
- Total earnings for the Communication Services industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 3.6% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Brazilian Telecom sector?
| BR Market | 1.96% | |
| Telecom | 1.72% | |
| Entertainment | 3.03% | |
| Telecom Services and Carriers | 2.19% | |
| Media | 1.18% | |
| Interactive Media and Services | 0.86% | |
| Wireless Telecom | 0.69% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 19.9%, which is lower than the prior year's growth of 50.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Interactive Media and Services industry, expecting annual earnings growth of 110% over the next 5 years.
- In contrast, the Entertainment industry is expected to see its earnings grow by 20% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| VIVT3 Telefônica Brasil | R$39.48 | 1.9% +R$1.3b | -22.4% | PE11.8x | |
| TIMS3 TIM | R$13.16 | 0.7% +R$217.8m | -4.4% | PE14.8x | |
| FIQE3 Unifique Telecomunicações | R$3.93 | 12.3% +R$151.8m | -39.9% | PE11.5x | |
| DESK3 Desktop | R$9.96 | 9.2% +R$73.2m | -37.6% | PE18.7x | |
| BMOB3 Bemobi Mobile Tech | R$14.78 | 3.0% +R$37.6m | 9.0% | PE14.8x |