VIVTelefônica Brasil S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.5×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VIV?
Telefônica Brasil S.A. earns 9.5% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.46 points above what the capital costs: growth creates value
- Operating margin
- 4126%
Operating margin · Telecom Services median 11% · fiscal year to FY2025
- Cash conversion
- 2.47×
Cash conversion · 2.79× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6700% |
| FY2021 | 6350% |
| FY2022 | 4277% |
| FY2023 | 4793% |
| FY2024 | 3876% |
| FY2025 | 4126% |
Details›
- Gross marginfiscal year to FY2025
- 11161%
- Operating marginfiscal year to FY2025
- 4126%
- Net marginfiscal year to FY2025
- 2581%
- Free cash flow margin
- 4712%
- Revenue, trailing twelve months
- $239M
- Free cash flow, trailing twelve months
- $11.3B
- Net income, trailing twelve months
- $6.17B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.