Telefonica Brazil (VIV) Fundamental Analysis: Revenue, Earnings & Valuation

9.39 / 10

Outperform

The stock displays outstanding fundamental strength (9.4/10). Key positives include strong cash flow generation (Cash-MV score 2), efficient inventory turnover (3 points), and robust net profit growth (13.37% YoY). However, a high PB-ROE (placing it in Group 2) and negative Cash-UP signal potential overvaluation and cash-flow concerns. Overall, the balance of factors suggests a fundamentally solid company, but investors should monitor valuation metrics.

Analysis Checks(5/10)

Revenue-MV

Value0.40

Score0/3

Weight-27.33%

1M Return-8.06%

Net income-Revenue

Value0.19

Score0/3

Weight-7.42%

1M Return-2.46%

PB-ROE

Value-0.88

Score0/3

Weight-16.55%

1M Return-6.32%

Total profit (YoY growth rate %)

Value8.51

Score1/3

Weight-2.07%

1M Return-0.68%

Net cash flow from operating activities (YoY growth rate %)

Value1.74

Score2/3

Weight-0.37%

1M Return-0.12%

Cash-UP

Value-0.25

Score1/3

Weight14.30%

1M Return3.74%

Asset-MV

Value-0.51

Score3/3

Weight109.01%

1M Return17.54%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value13.37

Score2/3

Weight-0.59%

1M Return-0.18%

Inventory turnover days

Value13.12

Score3/3

Weight7.35%

1M Return2.04%

Cash-MV

Value0.73

Score2/3

Weight23.67%

1M Return4.90%

Is VIV fundamentally strong?

VIV scores 9.39/10 on fundamentals and holds a Discounted valuation at present. Backed by its 6.21% ROE, 10.35% net margin, 23.71 P/E ratio, 1.86 P/B ratio, and -41.41% earnings growth, these metrics solidify its Outperform investment rating.