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Telefonica Brasil S.A. (NYSE: VIV) – Is this large market cap stock undervalued?

Telefonica Brasil S.A. (NYSE: VIV), is firmly in the large market cap category with market cap of 22532.87. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Telefonica Brasil S.A. is 14.28 (with a change from open of -0.42%), this in conjunction with a target price of 14.21. Volume today has so far reached 793873, with an average volume of about 2097.71. The GAP for this stock, is 1.77%.

The P/E ratio is 20.22, bringing the forward P/E to a value of 14.18. The current EPS for Telefonica Brasil S.A., is 0.7, with a EPS growth for this year coming to a value of -47.80%. Performance has been interesting with performance year to date coming to 61.89%.

Looking further into the growth statistics for Telefonica Brasil S.A., EPS is looking like it will grow 34.69% in the next year. Looking even further it is projected to be 2.10%. Quarter over quarter is -30.70% for EPS growth and for sales growth quarter over quarter it is 5.50%. Looking at past EPS growth statistics we see that for the past five years it has been -13.50%. Sales growth for the past five years has in fact been 20.60%.

Looking at the ownership, we see that the insider ownership is at 88.00% and institutional ownership is 16.40%. Shares outstanding is 1599.21, while shares float is at a value of 670.97. Float short for Telefonica Brasil S.A. is 1.40% and the short ratio is 4.48.

In terms of debt, long term debt/equity is 0.1, while the total debt/equity comes to 0.13. The ability to meet these debts, means that the current ratio is 1, and the quick ratio is 1. The most recent gross margin is 49.40% and their operating margin is 14.10%. The profit margin is 9.20%.

Telefonica Brasil S.A. has seen returns on assets of 3.80%, and on investment, 5.40%. Return on equity is 5.70%. Price/Earnings to growth ratio is 9.63. Price/Sales ratio is at a value of 1.76, with Price/book ratio coming to 1.15 and Price/cash is 13.11, and finally Price/Free cash Flow is 26.77.

The simple moving averages are -2.42% and 23.22% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -8.99% and the 52 week low is 90.92%.

Telefonica Brasil S.A. has a dividend yield of 1.99%, with a current price of 14.28. The ability to pay this means the payout ratio is 34.20%. This is in an industry, Wireless Communications, with equally high dividends from other companies in this sector, which it is Technology. Telefonica Brasil S.A. is based in Brazil.

Performance in the Wireless Communications industry means that Telefonica Brasil S.A. has seen performance for the past week of -1.19%, with performance for the month coming to -3.69%. Looking at the data for the quarter it is at a value of 20.48%, and for the half year the performance is 38.24%. Volatility for this week is 2.60% and for the month this is 2.41%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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