Telefonica Brasil S.A (NYSE: VIV) shares currently have a dividend yield of 6.90%. Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. The company has a P/E ratio of 6.48. The average volume for Telefonica Brasil S.A has been 1,654,300 shares per day over the past 30 days. Telefonica Brasil S.A has a market cap of $25.1 billion and is part of the telecommunications industry. Shares are down 7.2% year to date as of the close of trading on Thursday. TheStreet Ratings rates Telefonica Brasil S.A as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- VIV's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for TELEFONICA BRASIL SA is rather high; currently it is at 61.19%. Regardless of VIV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VIV's net profit margin of 10.89% compares favorably to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Diversified Telecommunication Services industry and the overall market, TELEFONICA BRASIL SA's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Net operating cash flow has declined marginally to $798.50 million or 4.83% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TELEFONICA BRASIL SA has marginally lower results.
- You can view the full Telefonica Brasil S.A Ratings Report.
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