OTCPK:OIBR.Q

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.

Risks

  • Oi has significant price volatility in the past 3 months.

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

18.1%

OTCPK:OIBR.Q

1.5%

US Telecom

1.1%

US Market


1 Year Return

-17.9%

OTCPK:OIBR.Q

6.9%

US Telecom

2.1%

US Market

OIBR.Q underperformed the Telecom industry which returned 8.4% over the past year.

OIBR.Q underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

OIBR.QIndustryMarket
7 Day18.1%1.5%1.1%
30 Day27.9%5.9%3.7%
90 Day-1.9%9.0%2.3%
1 Year-17.9%-17.9%12.6%6.9%4.4%2.1%
3 Year-42.6%-42.6%17.5%0.4%47.0%37.4%
5 Year-94.5%-94.5%33.7%3.1%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

0.36x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Oi to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Oi to establish if it is available at substantial discount.


Price Based on Earnings

Oi is loss making, we can't compare its value to the US Telecom industry average.

Oi is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Oi, we can't assess if its growth is good value.


Price Based on Value of Assets

Oi is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Oi expected 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 Estimates


Future Annual Growth Analysis

Oi's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Oi is not considered high growth as it is expected to be loss making for the next 1-3 years.

Oi's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare Oi's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Oi's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Oi will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


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

Oi does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Oi's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Oi's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Oi has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Oi has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Oi improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Oi's financial position?


Financial Position Analysis

Oi is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Oi's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Oi's level of debt (65.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (203.9% vs 65.3% today).

Debt is not well covered by operating cash flow (8.7%, less than 20% of total debt).

Unable to confirm if the interest payments on Oi's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Oi's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Oi's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Oi has not reported any payouts.

Unable to verify if Oi's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Oi has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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)

1.8yrs

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

48yo

Average Age

The average tenure for the Oi management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

62yo

Average Age

The average tenure for the Oi board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Eurico de Jesus Teles Neto (62yo)

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

    • Tenure: 1.8yrs
  • Silvio Roberto Almeida

    Administrative & Financial Officer and Member of Executive Board

    • Tenure: 1.7yrs
  • Márcio Pitzer (40yo)

    Internal Audit Officer & Member of Executive Board

    • Tenure: 0yrs
  • José Cláudio Gonçalves (51yo)

    COO & Member of Board of Executive Officers

    • Tenure: 1.5yrs
  • 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: 1.9yrs
  • Suzana Santos (47yo)

    Corporate Communications Officer & Member of Executive Board

    • Tenure: 2.8yrs
  • Marcos Mendes

    Interim Human Resources Officer & Member of Executive Board

    • Tenure: 0.9yrs
  • David Tavares Nunes

    Chief Accounting Officer

    • Tenure: 0yrs

Board Members

  • José Mettrau Carneiro da Cunha (70yo)

    Independent Director

    • Tenure: 10.6yrs
  • Marcos Grodetzky (63yo)

    Vice Chairman

    • Tenure: 1yrs
  • Paulino do Rego Barros (63yo)

    Independent Director

    • Tenure: 1yrs
  • Pedro Wagner Coelho (71yo)

    Chairman of Fiscal Council

    • Tenure: 2.4yrs
  • Wallim de Vasconcellos (61yo)

    Independent Director

    • Tenure: 1yrs
  • Marcos Rocha (55yo)

    Independent Director

    • Tenure: 1.7yrs
  • Maria Helena dos Santos de Santana (60yo)

    Independent Director

    • Tenure: 1yrs
  • Rodrigo de Abreu (50yo)

    Independent Director

    • Tenure: 1yrs
  • Eleazar Carvalho Filho (61yo)

    Chairman

    • Tenure: 1yrs
  • Henrique Fernandes Luz (64yo)

    Independent Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: Oi S.A.
  • Ticker: OIBR.Q
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$6.444b
  • Listing Market Cap: R$1.579b
  • 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 Analysis2019/09/16 23:32
End of Day Share Price2019/09/16 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.