Telefonica Brasil SA

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VIV : NYSE : Technology
$16.37 | %
Today's Range: 16.28 - 16.59
Avg. Daily Volume: 1244100.0
09/22/17 - 4:02 PM ET

Financial Analysis

TELEFONICA BRASIL SA's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged 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 weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.71% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)3091.243605.17
EBITDA ($mil)1079.061185.37
EBIT ($mil)513.55516.11
Net Income ($mil)250.45256.07

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2348.851855.96
Total Assets ($mil)31568.6531730.64
Total Debt ($mil)3152.742572.69
Equity ($mil)20769.3921347.93

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin67.064.49
EBITDA Margin34.932.87
Operating Margin16.6114.32
Sales Turnover0.410.33
Return on Assets3.873.14
Return on Equity5.884.67
Debt Q2 FY17 Q2 FY16
Current Ratio0.960.98
Interest Expense91.9124.41
Interest Coverage5.594.15

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1119.341119.34
Div / share0.440.34
Book value / share18.5619.07
Institutional Own % n/a n/a
Avg Daily Volume1231685.01481401.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 34.54 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 24.93. For additional comparison, its price-to-book ratio of 0.89 indicates a significant discount versus the S&P 500 average of 3.11 and a significant discount versus the industry average of 3.56. The price-to-sales ratio is well 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VIV 15.16 Peers 34.54   VIV 5.29 Peers 7.11

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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
VIV 15.79 Peers 15.74   VIV NM Peers 0.68

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

VIV is trading at a premium 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VIV 0.89 Peers 3.56   VIV 23.86 Peers 55.16

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VIV 1.43 Peers 11.06   VIV 21.96 Peers 0.84

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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