BOVESPA:OIBR4

Stock Analysis Report

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Executive Summary

Oi S.A., a switched fixed-line telephony services concessionaire, provides integrated telecommunication services in Brazil. More Details


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has Oi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OIBR4 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OIBR4's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of BR stocks.


Market Performance


7 Day Return

-9.4%

OIBR4

-5.0%

BR Telecom

-6.3%

BR Market


1 Year Return

74.2%

OIBR4

-0.6%

BR Telecom

5.6%

BR Market

Return vs Industry: OIBR4 exceeded the BR Telecom industry which returned -0.6% over the past year.

Return vs Market: OIBR4 exceeded the BR Market which returned 5.6% over the past year.


Shareholder returns

OIBR4IndustryMarket
7 Day-9.4%-5.0%-6.3%
30 Day-13.5%-6.3%-3.7%
90 Day-23.8%-12.9%2.2%
1 Year74.2%74.2%3.4%-0.6%8.2%5.6%
3 Year-27.3%-38.2%19.6%2.1%40.5%26.2%
5 Year108.0%76.9%50.8%18.2%137.1%97.4%

Long-Term Price Volatility Vs. Market

How volatile is Oi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Oi undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OIBR4 (R$2.3) is trading below our estimate of fair value (R$6.74)

Significantly Below Fair Value: OIBR4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OIBR4 is unprofitable, so we can't compare its PE Ratio to the XS Telecom industry average.

PE vs Market: OIBR4 is unprofitable, so we can't compare its PE Ratio to the BR market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OIBR4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OIBR4 is overvalued based on its PB Ratio (2.3x) compared to the XS Telecom industry average (1.1x).


Next Steps

Future Growth

How is Oi forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

59.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OIBR4 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OIBR4 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OIBR4 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OIBR4's revenue (1.8% per year) is forecast to grow slower than the BR market (12% per year).

High Growth Revenue: OIBR4's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OIBR4 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Oi performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OIBR4 is currently unprofitable.

Growing Profit Margin: OIBR4 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OIBR4 is unprofitable, and losses have increased over the past 5 years at a rate of 4% per year.

Accelerating Growth: Unable to compare OIBR4's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OIBR4 is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (3.9%).


Return on Equity

High ROE: OIBR4 has a negative Return on Equity (-243.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Oi's financial position?


Financial Position Analysis

Short Term Liabilities: OIBR4's short term assets (R$18.2B) exceed its short term liabilities (R$12.1B).

Long Term Liabilities: OIBR4's short term assets (R$18.2B) do not cover its long term liabilities (R$54.5B).


Debt to Equity History and Analysis

Debt Level: OIBR4's debt to equity ratio (448.6%) is considered high.

Reducing Debt: OIBR4's debt to equity ratio has increased from 302.4% to 448.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OIBR4 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if OIBR4 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Oi current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OIBR4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OIBR4's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OIBR4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OIBR4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OIBR4 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OIBR4's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Rodrigo Modesto Abreu (51 yo)

1.08yrs

Tenure

Mr. Rodrigo Modesto de Abreu has been Chief Operating Officer at Oi S.A. since September 5, 2019 and also serves as its Member of Executive Board since September 2019 and serves as its Chief Executive Offi...


Leadership Team

NamePositionTenureCompensationOwnership
Rodrigo Modesto Abreu
CEO, COO & Member of Executive Board1.08yrsno datano data
Camille Faria
Chief Financial & Investor Relations Officer and Member of Executive Board1.33yrsno datano data
José Cláudio Gonçalves
Operations & Technology Officer and Member of Executive Board2.92yrsno datano data
Carlos Eduardo de Morais Medeiros
Regulation & Institutional Affairs Officer and Member of Executive Boardno datano datano data
Bernardo Wink
Custumers Officer & Member of Executive Boardno datano datano data
Suzana Santos
Corporate Comm. Officer4.25yrsno datano data
Rogerio Takayanagi
Strategy & Transformation Officer and Member of Executive Board1.08yrsno datano data
Marcos Aurélio Mendes
People & Management Officer and Member of Executive Board2.33yrsno datano data
Antonio Rabelo Filho
Chief Legal Officer & Member of Executive Boardno datano datano data
Luiz Modenese
Internal Audit Officer & Member of Executive Officer1.08yrsno datano data
Daniel Junqueira Hermeto
Business Support Officer & Member of Executive Board1.08yrsno datano data
Pedro Arakawa
Wholesale & Franchises Officer and Member of Executive Board1.08yrsno datano data

1.1yrs

Average Tenure

49yo

Average Age

Experienced Management: OIBR4's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marcos Grodetzky
Independent Vice Chairman2.42yrsno datano data
Paulino do Rego Barros
Independent Director2.42yrsno datano data
Eleazar de Carvalho Filho
Independent Chairman2.42yrsno datano data
Pedro Wagner Coelho
Chairman of Fiscal Council3.83yrsno datano data
Marcos Rocha
Independent Director3.08yrsno datano data
Mateus Bandeira
Director0.33yrno datano data
Maria Helena dos Santos Fernandes de Santana
Independent Director2.42yrsno datano data
Roger Rafols
Independent Director2.17yrsno datano data
Armando Netto
Independent Director0.67yrno datano data
Luis Maria Palha da Silva
Director5.42yrsno datano data
Henrique Fernandes Luz
Independent Director2.42yrsno datano data
Claudia Woods
Independent Director0.92yrno datano data

2.4yrs

Average Tenure

62yo

Average Age

Experienced Board: OIBR4's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Oi S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oi S.A.
  • Ticker: OIBR4
  • Exchange: BOVESPA
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$11.256b
  • Shares outstanding: 5.95b
  • Website: https://www.oi.com.br

Number of Employees


Location

  • Oi S.A.
  • Rua Humberto de Campos, 425
  • Leblon
  • Rio de Janeiro
  • Rio de Janeiro
  • 22430-190
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OIBR3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLOct 1993
OIBR4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLOct 1993
OIBR.QOTCPK (Pink Sheets LLC)ADR EACH REPR 1 PRFUSUSDNov 2001
OIBR.CNYSE (New York Stock Exchange)ADR EACH REP 5 ORD SPON (POST REV SPLIT)USUSDNov 2009
TSLLDB (Deutsche Boerse AG)ADR EACH REP 5 ORD SPON (POST REV SPLIT)DEEURNov 2009

Biography

Oi S.A., a switched fixed-line telephony services concessionaire, provides integrated telecommunication services in Brazil. The company offers fixed telephony services, including voice, data communication,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 22:55
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.