Telefônica Brasil S.A.
Telefônica Brasil S.A. Fundamental Analysis
Telefônica Brasil S.A. (VIV) shows moderate financial fundamentals with a PE ratio of 21.61, profit margin of 10.34%, and ROE of 8.83%. The company generates $58.5B in annual revenue with moderate year-over-year growth of 7.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VIV's fundamental strength across five key dimensions:
Efficiency Score
WeakVIV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVIV trades at attractive valuation levels.
Growth Score
ModerateVIV shows steady but slowing expansion.
Financial Health Score
ExcellentVIV maintains a strong and stable balance sheet.
Profitability Score
WeakVIV struggles to sustain strong margins.
Key Financial Metrics
Is VIV Expensive or Cheap?
P/E Ratio
VIV trades at 21.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VIV's PEG of 0.94 indicates potential undervaluation.
Price to Book
The market values Telefônica Brasil S.A. at 1.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.44 times EBITDA. This is generally considered low.
How Well Does VIV Make Money?
Net Profit Margin
For every $100 in sales, Telefônica Brasil S.A. keeps $10.34 as profit after all expenses.
Operating Margin
Core operations generate 16.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.83 in profit for every $100 of shareholder equity.
ROA
Telefônica Brasil S.A. generates $4.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telefônica Brasil S.A. generates strong operating cash flow of $20.11B, reflecting robust business health.
Free Cash Flow
Telefônica Brasil S.A. generates strong free cash flow of $10.40B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.51 in free cash annually.
FCF Yield
VIV converts 8.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How VIV Stacks Against Its Sector Peers
| Metric | VIV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.61 | 21.66 | Neutral |
| ROE | 8.83% | 1190.00% | Weak |
| Net Margin | 10.34% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.02 | 1.59 | Neutral |
| ROA | 4.89% | -202359.00% (disorted) | Weak |
VIV outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telefônica Brasil S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.78%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
14.13%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
15.39%
Industry Style: Growth, Technology, Streaming
High Growth