BOVESPA:OIBR4

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.7%

OIBR4

2.1%

BR Telecom

0.3%

BR Market


1 Year Return

-37.8%

OIBR4

34.9%

BR Telecom

22.9%

BR Market


Shareholder returns

OIBR4IndustryMarket
7 Day-0.7%2.1%0.3%
30 Day-9.1%-0.2%-0.3%
90 Day-18.6%1.8%0.9%
1 Year-26.8%-37.8%46.6%34.9%28.0%22.9%
3 Year-41.4%-50.2%25.7%7.5%64.3%46.6%
5 Year-84.5%-86.8%-1.2%-22.5%96.7%64.1%

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?

0.33x

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 (1.9x).


Next Steps

Future Growth

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

11.8%

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 is expected to decline over the next 3 years (0.03% per year).

High Growth Revenue: OIBR4's revenue is forecast to decline over the next 3 years (0.03% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Oi performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OIBR4 is unprofitable, but has reduced losses over the past 5 years at a rate of 31.6% 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 (6%).


Return on Equity

High ROE: OIBR4 has a negative Return on Equity (-22.07%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: OIBR4 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: OIBR4 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Oi's financial position?


Financial Position Analysis

Short Term Liabilities: OIBR4's short term assets (R$21.9B) exceeds its short term liabilities (R$12.0B)

Long Term Liabilities: OIBR4's short term assets (21.9B) do not cover its long term liabilities (38.5B)


Debt to Equity History and Analysis

Debt Level: OIBR4's debt to equity ratio (65.3%) is considered high

Reducing Debt: OIBR4's debt to equity ratio has reduced from 203.9% to 65.3% over the past 5 years.

Debt Coverage: OIBR4's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: Insufficient data to determine if OIBR4's interest payments on its debt are well covered by EBIT.


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%4.9%industryaverage6.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Oi's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Eurico de Jesus Teles Neto (62yo)

1.9yrs

Tenure

0

Mr. Eurico de Jesus Teles Neto has been Chief Executive Officer of Oi S.A. since November 24, 2017. Mr. de Jesus Teles Neto has been Chief Legal Officer of Oi S.A. since May 2016 and serves as its Member  ...


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: OIBR4's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

62yo

Average Age

Experienced Board: OIBR4's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Eurico de Jesus Teles Neto (62yo)

    CEO, Chief Legal Officer & Member of Board of Executive Officers

    • Tenure: 1.9yrs
  • Rodrigo Modesto Abreu (50yo)

    COO & Member of Executive Board

    • Tenure: 0.08yrs
  • Silvio Roberto Almeida

    Administrative & Financial Officer and Member of Executive Board

    • Tenure: 1.8yrs
  • José Cláudio Gonçalves (51yo)

    Member of Board of Executive Officers

    • Tenure: 1.6yrs
  • Carlos Eduardo de Morais Medeiros (48yo)

    Regulation & Wholesale Officer and Member of Executive Board

    • Tenure: 0yrs
  • Bernardo Winik (50yo)

    Chief Commercial Officer & Member of Board of Executive Officers

    • Tenure: 0yrs
  • Carlos Augusto Machado de Almeida Brandão (45yo)

    CFO, Investor Relations Officer & Member of Board of Executive Officers

    • Tenure: 2yrs
  • Suzana Santos (47yo)

    Corporate Communications Officer & Member of Executive Board

    • Tenure: 2.9yrs
  • Marcos Mendes

    Interim Human Resources Officer & Member of Executive Board

    • Tenure: 1yrs
  • David Tavares Nunes

    Chief Accounting Officer

    • Tenure: 0yrs

Board Members

  • José Mettrau Carneiro da Cunha (70yo)

    Independent Director

    • Tenure: 10.7yrs
  • Marcos Grodetzky (63yo)

    Independent Vice Chairman

    • Tenure: 1.1yrs
  • Paulino do Rego Barros (63yo)

    Independent Director

    • Tenure: 1.1yrs
  • Pedro Wagner Coelho (71yo)

    Chairman of Fiscal Council

    • Tenure: 2.5yrs
  • Wallim de Vasconcellos (61yo)

    Independent Director

    • Tenure: 1.1yrs
  • Marcos Rocha (55yo)

    Independent Director

    • Tenure: 1.8yrs
  • Maria Helena dos Santos de Santana (60yo)

    Independent Director

    • Tenure: 1.1yrs
  • Roger Rafols (45yo)

    Independent Director

    • Tenure: 0.8yrs
  • Eleazar Carvalho Filho (61yo)

    Independent Chairman

    • Tenure: 1.1yrs
  • Henrique Fernandes Luz (64yo)

    Independent Director

    • Tenure: 1.1yrs

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$5.841b
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 18:06
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.