0.12 | 0.45%
TELEFONICA BRASIL SA's gross profit margin for the fourth quarter of its fiscal year 2012 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. TELEFONICA BRASIL SA has average liquidity. Currently, the Quick Ratio is 1.13 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 6.18% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 4231.68 | 4532.34 |
| EBITDA ($mil) | 2485.58 | 2438.43 |
| EBIT ($mil) | 915.71 | 1742.03 |
| Net Income ($mil) | 705.71 | 772.91 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 3514.4 | 1578.54 |
| Total Assets ($mil) | 34310.74 | 35158.63 |
| Total Debt ($mil) | 3907.25 | 3341.94 |
| Equity ($mil) | 21821.22 | 23259.63 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 85.16 | 74.69 |
| EBITDA Margin | 58.73 | 53.8 |
| Operating Margin | 21.64 | 38.44 |
| Sales Turnover | 0.48 | 0.44 |
| Return on Assets | 6.33 | 6.65 |
| Return on Equity | 9.96 | 10.05 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 1.2 | 0.93 |
| Debt/Capital | 0.15 | 0.13 |
| Interest Expense | 133.43 | 152.7 |
| Interest Coverage | 6.86 | 11.41 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 741.93 | 742.54 |
| Div / share | 0.51 | 1.16 |
| EPS | 0.95 | 1.04 |
| Book value / share | 29.41 | 31.32 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1154158.0 | 1243942.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 47.89 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 0.90 indicates a significant discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 2.67. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TELEFONICA BRASIL SA proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VIV 9.09 | Peers 47.89 | VIV 4.14 | Peers 4.95 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. VIV is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. VIV is trading at a discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| VIV 12.68 | Peers 15.54 | VIV NM | Peers 1.28 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. VIV is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. VIV's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
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| VIV 0.90 | Peers 2.67 | VIV -21.93 | Peers 21.79 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. VIV is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, VIV is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| VIV 1.19 | Peers 1.69 | VIV 5.96 | Peers 0.82 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. VIV is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. VIV has a sales growth rate that significantly exceeds its peers. |
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