BOVESPA:VIVT4

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Executive Summary

Telefônica Brasil S.A. provides mobile and fixed telecommunications services to residential and corporate customers in Brazil.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VIVT4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

VIVT4

-0.2%

BR Telecom

3.3%

BR Market


1 Year Return

-3.6%

VIVT4

11.5%

BR Telecom

-4.7%

BR Market

Return vs Industry: VIVT4 underperformed the BR Telecom industry which returned 11.5% over the past year.

Return vs Market: VIVT4 exceeded the BR Market which returned -4.7% over the past year.


Shareholder returns

VIVT4IndustryMarket
7 Day1.3%-0.2%3.3%
30 Day2.3%0.03%3.3%
90 Day-4.6%6.1%29.0%
1 Year1.9%-3.6%16.9%11.5%-1.3%-4.7%
3 Year36.9%8.6%19.5%1.7%64.8%46.8%
5 Year57.2%12.7%22.7%-3.1%89.6%57.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

17.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VIVT4 (R$48.85) is trading above our estimate of fair value (R$34.08)

Significantly Below Fair Value: VIVT4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VIVT4 is poor value based on its PE Ratio (17.1x) compared to the Telecom industry average (14.6x).

PE vs Market: VIVT4 is poor value based on its PE Ratio (17.1x) compared to the BR market (15x).


Price to Earnings Growth Ratio

PEG Ratio: VIVT4 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: VIVT4 is good value based on its PB Ratio (1.2x) compared to the XS Telecom industry average (1.2x).


Next Steps

Future Growth

How is Telefônica Brasil forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIVT4's forecast earnings growth (10.6% per year) is below the savings rate (10.7%).

Earnings vs Market: VIVT4's earnings (10.6% per year) are forecast to grow slower than the BR market (27.1% per year).

High Growth Earnings: VIVT4's earnings are forecast to grow, but not significantly.

Revenue vs Market: VIVT4's revenue (3.4% per year) is forecast to grow slower than the BR market (9.3% per year).

High Growth Revenue: VIVT4's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIVT4's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Telefônica Brasil performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIVT4 has high quality earnings.

Growing Profit Margin: VIVT4's current net profit margins (10.9%) are lower than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: VIVT4's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: VIVT4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VIVT4 had negative earnings growth (-47.4%) over the past year, making it difficult to compare to the Telecom industry average (2.6%).


Return on Equity

High ROE: VIVT4's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Telefônica Brasil's financial position?


Financial Position Analysis

Short Term Liabilities: VIVT4's short term assets (R$21.1B) exceed its short term liabilities (R$19.2B).

Long Term Liabilities: VIVT4's short term assets (R$21.1B) exceed its long term liabilities (R$19.4B).


Debt to Equity History and Analysis

Debt Level: VIVT4's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: VIVT4's debt to equity ratio has reduced from 15.7% to 6.1% over the past 5 years.

Debt Coverage: VIVT4's debt is well covered by operating cash flow (434.2%).

Interest Coverage: VIVT4's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Telefônica Brasil current dividend yield, its reliability and sustainability?

7.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VIVT4's dividend (7.23%) is higher than the bottom 25% of dividend payers in the BR market (1.32%).

High Dividend: VIVT4's dividend (7.23%) is in the top 25% of dividend payers in the BR market (5.66%)


Stability and Growth of Payments

Stable Dividend: VIVT4's dividend payments have been volatile in the past 10 years.

Growing Dividend: VIVT4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.8%), VIVT4's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VIVT4's dividends in 3 years are not forecast to be well covered by earnings (125% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Christian Mauad Gebara (46yo)

1.5yrs

Tenure

Mr. Christian Mauad Gebara serves as Chief Executive Officer of Telefónica Brasil, S.A. (Telefónica Brasil) since 2019 and also serves as its Chairman. Christian holds a degree in Business Administration f ...


Leadership Team

NamePositionTenureCompensationOwnership
Christian Mauad Gebara
CEO & Director1.5yrsno datano data
David Sanchez-Friera
Chief Financial & Investor Relations Officer4.33yrsno datano data
Luis Carlos Da Plaster
Investor Relations Directorno datano datano data
Breno Rodrigo de Oliveira
General Secretary & Legal Officerno datano datano data
Paula França Mansur
Chief Audit Officer2.17yrsno datano data

2.2yrs

Average Tenure

46yo

Average Age

Experienced Management: VIVT4's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christian Mauad Gebara
CEO & Director1.5yrsno datano data
Sônia Júlia Villalobos
Director4.25yrsno datano data
Luiz Fernando Furlán
Director12.42yrsno datano data
Juan Carlos Ros Brugueras
Director0.42yrno datano data
Eduardo Navarro de Carvalho
Chairman of the Board4.08yrsno datano data
Narcis Serra Serra
Independent Director15.5yrsno datano data
José del Rey Osorio
Independent Director3.5yrsno datano data
Antonio Carlos Valente da Silva
Director4.25yrsno datano data
Francisco Javier de Paz Mancho
Director12.42yrsno datano data
Julio Esteban Lopez
Director2.83yrsno datano data

4.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: VIVT4's board of directors are considered experienced (4.2 years average tenure).


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

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


Key Information

  • Name: Telefônica Brasil S.A.
  • Ticker: VIVT4
  • Exchange: BOVESPA
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$82.533b
  • Shares outstanding: 1.69b
  • Website: https://www.telefonica.com.br

Number of Employees


Location

  • Telefônica Brasil S.A.
  • Avenida Engenheiro Luis Carlos Berrini, 1376
  • 32º andar
  • São Paulo
  • São Paulo
  • 04571-936
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIVT3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLSep 1998
VIVT4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLSep 1998
VIVNYSE (New York Stock Exchange)SPON ADR EA REPR 1 PFD SHUSUSDNov 1998
VIV NBMV (Bolsa Mexicana de Valores)SPON ADR EA REPR 1 PFD SHMXMXNNov 1998
TSPDB (Deutsche Boerse AG)SPON ADR EA REPR 1 PFD SHDEEURNov 1998

Biography

Telefônica Brasil S.A. provides mobile and fixed telecommunications services to residential and corporate customers in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband Internet access through 3G, 4G, and 4.5G, as well as mobile value-added services and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through direct to home satellite technology, IPTV, and cable, as well as pay-per-view and video on demand services; network services, such as rental of facilities; other services comprising Internet access, private network connectivity, computer equipment leasing, extended, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. Telefônica Brasil S.A. markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and telesales. The company was formerly known as Telecomunicações de São Paulo S.A. - TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil. Telefônica Brasil S.A. operates as a subsidiary of SP Telecomunicações Participações Ltda 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 18:04
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
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.