BOVESPA:OIBR4

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

OIBR4

0.3%

BR Telecom

13.2%

BR Market


1 Year Return

-35.4%

OIBR4

-3.3%

BR Telecom

-19.3%

BR Market

Return vs Industry: OIBR4 underperformed the BR Telecom industry which returned -3.2% over the past year.

Return vs Market: OIBR4 underperformed the BR Market which returned -18.8% over the past year.


Shareholder returns

OIBR4IndustryMarket
7 Day9.2%0.3%13.2%
30 Day-28.0%-12.2%-26.1%
90 Day-22.8%-18.9%-33.4%
1 Year-35.4%-35.4%2.5%-3.3%-16.3%-19.3%
3 Year-71.4%-75.7%9.0%-10.4%21.7%8.1%
5 Year-82.0%-84.7%0.3%-20.4%46.9%21.3%

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?

0.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OIBR4's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OIBR4's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OIBR4 is unprofitable, so we can't compare its PE Ratio to the 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 good value based on its PB Ratio (0.3x) compared to the BR Telecom industry average (1.2x).


Next Steps

Future Growth

How is Oi forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.4%

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 (0.8% per year) is forecast to grow slower than the BR market (8.8% per year).

High Growth Revenue: OIBR4's revenue (0.8% 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?

24.3%

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, but has reduced losses over the past 5 years at a rate of 24.3% 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 (16.8%).


Return on Equity

High ROE: OIBR4 has a negative Return on Equity (-50.58%), 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$20.2B) exceed its short term liabilities (R$11.9B).

Long Term Liabilities: OIBR4's short term assets (R$20.2B) do not cover its long term liabilities (R$40.9B).


Debt to Equity History and Analysis

Debt Level: OIBR4's debt to equity ratio (89.2%) is considered high.

Reducing Debt: OIBR4's debt to equity ratio has reduced from 205.5% to 89.2% over the past 5 years.


Balance Sheet

Inventory Level: OIBR4 has a high level of physical assets or inventory.

Debt Coverage by Assets: OIBR4's debt is covered by short term assets (assets are 1.1x debt).


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 been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: OIBR4 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Oi's 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 payouts.

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

1.7yrs

Average management tenure


CEO

Rodrigo Modesto Abreu (50yo)

0.17

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 Board0.17yrno datano data
Camille Faria
Chief Financial & Investor Relations Officer and Member of Executive Board0.42yrno datano data
José Cláudio Gonçalves
Member of Board of Executive Officers2yrsno datano data
Carlos Eduardo de Morais Medeiros
Regulation & Wholesale Officer and Member of Executive Boardno datano datano data
Bernardo Winik
Chief Commercial Officer & Member of Board of Executive Officersno datano datano data
Suzana Santos
Corporate Communications Officer & Member of Executive Board3.33yrsno datano data
Silvio Roberto Almeida
Administrative & Financial Officer and Member of Executive Board2.17yrsno datano data
Marcos Mendes
Interim Human Resources Officer & Member of Executive Board1.42yrsno datano data
Antonio Rabelo Filho
Chief Legal Officer & Member of Executive Boardno datano datano data
David Tavares Nunes
Chief Accounting Officerno datano datano data

1.7yrs

Average Tenure

50yo

Average Age

Experienced Management: OIBR4's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
José Mettrau Carneiro da Cunha
Independent Director11yrsno datano data
Marcos Grodetzky
Independent Vice Chairman1.5yrsno datano data
Paulino do Rego Barros
Independent Director1.5yrsno datano data
Pedro Wagner Coelho
Chairman of Fiscal Council2.92yrsno datano data
Wallim de Vasconcellos
Independent Director1.5yrsno datano data
Marcos Rocha
Independent Director2.17yrsno datano data
Maria Helena dos Santos Fernandes de Santana
Independent Director1.5yrsno datano data
Roger Rafols
Independent Director1.25yrsno datano data
Eleazar Carvalho Filho
Independent Chairman1.5yrsno datano data
Henrique Fernandes Luz
Independent Director1.5yrsno datano data

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: OIBR4's board of directors are not considered experienced ( 1.5 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 been substantially diluted in the past year, with total shares outstanding growing by 365.4%.


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: 1963
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$3.046b
  • Shares outstanding: 5.95b
  • Website: https://www.oi.com.br

Number of Employees


Location

  • Oi S.A.
  • Rua do Lavradio, 71
  • 2 andar
  • Rio de Janeiro
  • Rio de Janeiro
  • 20230-070
  • 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, and pay TV services; local and intraregional long-distance carrier services; domestic and international long-distance services; and mobile voice and data telecommunications services, as well as value-added services. It also provides wholesale interconnection, network usage, and traffic transportation services to other telecommunications providers. In addition, the company offers financial, payment and credit systems, network, data traffic, call center and telemarketing, and Wi-Fi Internet services. Further, the company is involved in raising funds in the international market; investment management, property investment, and receivables portfolio management activities; and the purchase and sale of real estate. As of December 31, 2018, it had 4.9 million ADSL subscribers; 1.6 million residential pay TV subscribers; and 37.7 million mobile subscribers. It serves residential, subscription and prepaid, and mobile broadband customers, as well as small, medium-sized, and large corporate customers. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1963 and is headquartered in Rio de Janeiro, Brazil. On June 20, 2016, Oi S.A. along with its subsidiaries filed for bankruptcy protection. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 19:25
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.