NYSE:VIV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and good value.


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


Market Performance


7 Day Return

3.7%

VIV

0.6%

US Telecom

0.07%

US Market


1 Year Return

28.9%

VIV

8.4%

US Telecom

8.9%

US Market

Return vs Industry: VIV exceeded the US Telecom industry which returned 8.4% over the past year.

Return vs Market: VIV exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

VIVIndustryMarket
7 Day3.7%0.6%0.07%
30 Day2.6%0.6%-0.3%
90 Day-6.4%10.7%-1.6%
1 Year38.2%28.9%14.1%8.4%11.3%8.9%
3 Year15.8%-3.8%28.0%9.3%46.3%36.8%
5 Year-5.5%-29.3%40.7%8.4%62.1%44.3%

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?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIV ($13.34) is trading below our estimate of fair value ($20.72)

Significantly Below Fair Value: VIV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VIV is good value based on its PE Ratio (12.4x) compared to the Telecom industry average (16x).

PE vs Market: VIV is good value based on its PE Ratio (12.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: VIV is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: VIV is good value based on its PB Ratio (1.3x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

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

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIV's forecast earnings growth (5.3% per year) is above the savings rate (2.7%).

Earnings vs Market: VIV's earnings (5.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: VIV's revenue (2.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: VIV's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIV's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Telefônica Brasil performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VIV's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: VIV's earnings growth over the past year (6%) is below its 5-year average (15.8% per year).

Earnings vs Industry: VIV earnings growth over the past year (6%) exceeded the Telecom industry -23%.


Return on Equity

High ROE: VIV's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: VIV has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: VIV has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Telefônica Brasil's financial position?


Financial Position Analysis

Short Term Liabilities: VIV's short term assets (R$22.8B) exceeds its short term liabilities (R$22.2B)

Long Term Liabilities: VIV's short term assets (22.8B) exceeds its long term liabilities (21.2B)


Debt to Equity History and Analysis

Debt Level: VIV's debt to equity ratio (7.8%) is considered satisfactory

Reducing Debt: VIV's debt to equity ratio has reduced from 18.2% to 7.8% over the past 5 years.

Debt Coverage: VIV's debt is well covered by operating cash flow (276.5%).

Interest Coverage: VIV's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: VIV's debt is covered by short term assets (assets are 4.181120x debt).


Next Steps

Dividend

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

7.88%

Current Dividend Yield


Dividend Yield vs Market

company7.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VIV's dividend (7.88%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VIV's dividend (7.88%) is in the top 25% of dividend payers in the US market (3.68%)

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

Growing Dividend: VIV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.9%), VIV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VIV's dividends in 3 years are forecast to be covered by earnings (88.1% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Christian Mauad Gebara (46yo)

0.8yrs

Tenure

0

Mr. Christian Mauad Gebara serves as Chief Operating Officer at Telefônica Brasil S.A. and served as the Chief Revenue Officer of since August 2015. Mr. Gebara focuses more on profitable growth and competi ...


Management Age and Tenure

1.4yrs

Average Tenure

46yo

Average Age

Experienced Management: VIV's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

5.7yrs

Average Tenure

66.5yo

Average Age

Experienced Board: VIV's board of directors are considered experienced (5.7 years average tenure).


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

  • Breno Rodrigo de Oliveira (44yo)

    Chief Legal Officer & General Secretary

    • Tenure: 0yrs
  • David Sanchez-Friera (49yo)

    Chief Financial & Investor Relations Officer

    • Tenure: 3.6yrs
  • Luis Carlos Da Plaster

    Investor Relations Director

    • Tenure: 0yrs
  • Christian Mauad Gebara (46yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Paula França Mansur

    Chief Audit Officer

    • Tenure: 1.4yrs

Board Members

  • Luiz Fernando Furlán (73yo)

    Director

    • Tenure: 11.7yrs
  • Antonio de Oliveira (75yo)

    Independent Director

    • Tenure: 7.9yrs
  • Eduardo Navarro de Carvalho (56yo)

    Chairman of the Board

    • Tenure: 3.3yrs
  • Luis Miguel Gilpérez Lopez (60yo)

    Director

    • Tenure: 8.9yrs
  • Narcís Serra Serra (75yo)

    Independent Director

    • Tenure: 14.8yrs
  • José del Rey Osorio (67yo)

    Director

    • Tenure: 2.8yrs
  • Antonio Carlos Valente da Silva (66yo)

    Director

    • Tenure: 3.5yrs
  • Francisco Javier de Paz Mancho (61yo)

    Director

    • Tenure: 11.7yrs
  • Christian Mauad Gebara (46yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Julio Esteban Lopez (73yo)

    Director

    • Tenure: 2.1yrs

Company Information

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


Key Information

  • Name: Telefônica Brasil S.A.
  • Ticker: VIV
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$86.592b
  • Listing Market Cap: R$21.260b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:43
End of Day Share Price2019/10/22 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.