Telefonica Brasil S.A. American Depositary Shares (Each representing One Common Share) (VIV)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that sell essential services, generate cash, and trade at a sensible price. Telefônica Brasil fits parts of that picture: it provides mobile and fixed telecom services in Brazil, and the provided figures show revenue growth of 7.60% and profit growth of 16.97%, with second-quarter fiscal 2026 revenue of $15.8B and net income of $1.6B, a 9.98% margin. That is not a fast grower, but it is profitable. The balance sheet appears moderate with debt-to-equity of 0.30, and Piotroski F-Score 7/9. Cash generation is striking: TTM free cash flow of $10.7B and FCF yield 42.2%, per FairStock, though one must check whether such cash flow is sustainable and truly belongs to equity holders. At the 2026-10-13 close of $12.27, FairStock's P/E is 15.34, P/B 1.54, and dividend yield 8.31%. A Graham Number of $19.23 implies a 36.19% margin of safety on those calculations. The PEG of 0.90 and EV/EBITDA of 1.49 also look undemanding. But returns on capital are merely okay—ROE 9.87%, ROCE 5.51%—and the Altman Z-Score of 0.43 is a red flag. Telecom is competitive, regulated, capital-intensive, and exposed to Brazil's economy and currency. So this is a cash-rich, high-yield, low-expectation situation, but not a wide-moat compounder. I would want the dividend covered by durable free cash flow and the weak risk score to improve before trusting the apparent discount.

In plain English: Telefônica Brasil provides mobile and fixed-line phone and internet services in Brazil. It earns a profit, generates a lot of cash compared with its stock market value, and pays a high dividend, while the share price looks low compared with its earnings and accounting value. The main worry is a very weak financial-risk score, so the cheapness comes with real balance-sheet and industry risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer