Telefonica Brasil SA

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VIV : NYSE : Communications
$15.24 up 0.15 | 0.99%
Today's Range: 15.02 - 15.27
Avg. Daily Volume: 1145800.0
03/19/18 - 4:02 PM ET

Financial Analysis

TELEFONICA BRASIL SA's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. TELEFONICA BRASIL SA has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of 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 remained virtually unchanged only decreasing by 1.47% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)2876.63313.07
EBITDA ($mil)1046.841169.03
EBIT ($mil)528.59616.46
Net Income ($mil)414.31370.76

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)1320.911662.22
Total Assets ($mil)30609.8431374.11
Total Debt ($mil)2420.132707.9
Equity ($mil)20972.021285.02

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin67.767.92
EBITDA Margin36.3935.28
Operating Margin18.3818.61
Sales Turnover0.430.42
Return on Assets4.544.0
Return on Equity6.635.89
Debt Q4 FY17 Q4 FY16
Current Ratio0.940.9
Interest Expense47.51133.09
Interest Coverage11.134.63

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)1119.341119.34
Div / share0.330.13
Book value / share18.7419.02
Institutional Own % n/a n/a
Avg Daily Volume1183339.01238217.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 15.15 for the Diversified Telecommunication Services industry and a significant discount compared to the S&P 500 average of 25.66. For additional comparison, its price-to-book ratio of 0.81 indicates a significant discount versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 2.60. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 12.29 Peers 15.15   VIV 4.43 Peers 6.72

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

VIV is trading at a 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 12.63 Peers 12.97   VIV NM Peers 0.43

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 0.81 Peers 2.60   VIV 9.82 Peers 134.81

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 1.30 Peers 1.58   VIV -0.17 Peers 3.62

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 discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

VIV significantly trails its peers on the basis of sales growth



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