Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. Click here to learn more.
"We rate TELEFONICA BRASIL SA (VIV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 14.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for TELEFONICA BRASIL SA is rather high; currently it is at 62.47%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.77% significantly outperformed against the industry average.
- Net operating cash flow has increased to $1,152.50 million or 44.33% when compared to the same quarter last year. In addition, TELEFONICA BRASIL SA has also vastly surpassed the industry average cash flow growth rate of -22.25%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 139.7% when compared to the same quarter one year prior, rising from $380.29 million to $911.46 million.
- You can view the full analysis from the report here: VIV Ratings Report
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