# Telefônica Brasil (VIVT3.SA) Canonical: https://gigainvestors.com/s/VIVT3.SA Analysis as of: 2026-10-16T07:34:46.774Z. Financial observations: FY1998–FY2025. Listing currency: BRL. Reporting currency: BRL. ## Verdict Not a wonderful business Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no. Share price: BRL 31.22 per share; close as of 2026-10-15. Estimated value: low BRL 17.62 per share, central BRL 18.67 per share, high BRL 19.87 per share. Buy at or below the central value BRL 18.67 per share. Valuation as of 2026-10-16T07:34:46.774Z; scenarios are not confidence intervals. Expected annual return: 10.7% at the stated quote. About 10.7% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points). ## Checklist ### understandable: pass - 1 revenue decline in the last 10 years (informational) - Financial history: 10 years - Years with declining revenue: 1 - Years with a net loss: 0 - Operating margin variation: 0.13× Chart: Operating margin; fiscal year observations. - FY2016: 0.15× - FY2017: 0.15× - FY2018: 0.22× - FY2019: 0.16× - FY2020: 0.15× - FY2021: 0.16× - FY2022: 0.14× - FY2023: 0.15× - FY2024: 0.16× - FY2025: 0.15× ### moat: fail - ROIC median below threshold - ROIC worst years below threshold (more than 1 bad year allowed) - Recent gross margin fell 5.2pp below the typical margin (limit 4pp) - ROIC, median of available years: 11.4% - ROIC, second-lowest year: 9.7% - Typical minus recent gross margin: 5.2 pp - Typical gross margin (annual median): 45.6% - Recent gross margin (lower of latest and 3-year median): 40.4% - Years with nonpositive capital: 0 - Capital spending / revenue: 19.3% - ROIC including acquisitions, ten-year median: 7.6% Chart: ROIC excluding acquisitions; fiscal year observations. - FY2016: 10.1% - FY2017: 10.5% - FY2018: 14.6% - FY2019: 9.8% - FY2020: 9.7% - FY2021: 12.3% - FY2022: 9.4% - FY2023: 12.4% - FY2024: 12.5% - FY2025: 14.1% ### economics: pass - Owner earnings / net income, 5-yr: 1.26× - Cash conversion uses consolidated totals: No - Owner earnings, five-year total: BRL 34B - Net income, five-year total: BRL 27B - Return on incremental invested capital: >100% - Working capital / revenue, annual change: -0.5 pp - Working capital / revenue, change between three-year averages: -2.7 pp - Working capital / revenue, final three-year average: 8.6% Chart: Annual owner cash / profit; fiscal year observations. - FY2021: 1.08× - FY2022: 1.09× - FY2023: 1.37× - FY2024: 1.33× - FY2025: 1.39× ### management: pass - Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years) - buybacks leaned toward cheaper years (informational) - ROIC first 3 years vs last 3 years: 10.5% vs 12.5% - Per-share earnings: 1.21 to 1.69 (three-year endpoint medians) - Management verdict uses per-share economic progress: Yes - Ordinary dilution, 10-year annual growth: -0.5% - Ordinary dilution, 5-year annual growth: -0.9% - Market cap gain: BRL 45B - Cumulative retained earnings: BRL -80M - Diluted shares, 10-year annual growth: -0.5% - Diluted shares, 5-year annual growth: -0.9% - $1 test, starting fiscal year: FY2016 - $1 test, ending fiscal year: FY2025 - Per-share value growth: 4.3% - Per-share value change: BRL 0.48 - Per-share value, starting three-year median: BRL 1.21 - Per-share value, ending three-year median: BRL 1.69 - Buybacks concentrated in cheaper years (correlation): 0.05 - Average buyback yield: 1.1% - Buyback history: 8 years - Debt-funded buybacks: No - Acquisition spending: BRL 9.1B - Cumulative net income, 10 years: BRL 54B - ROIC, first three-year median: 10.5% - ROIC, last three-year median: 12.5% Chart: Earnings per share; fiscal year observations. - FY2016: BRL 1.21 - FY2017: BRL 1.36 - FY2018: BRL 2.64 - FY2019: BRL 1.48 - FY2020: BRL 1.41 - FY2021: BRL 1.86 - FY2022: BRL 1.22 - FY2023: BRL 1.52 - FY2024: BRL 1.69 - FY2025: BRL 1.91 ### accounting: pass - Sloan accruals: -11.4% - Receivables to sales index (DSRI): 1.02× - Restructuring years, last five: 0 - Stock compensation / operating cash flow: 0.0% - Earnings backed by cash: Yes - Operating cash / earnings: 3.36× - Accounting red flags: 0 - Goodwill and intangibles / equity: 0.70× Chart: Sloan accruals; fiscal year observations. - FY2016: -7.2% - FY2017: -7.9% - FY2018: -2.9% - FY2019: -11.7% - FY2020: -13.4% - FY2021: -10.2% - FY2022: -12.5% - FY2023: -11.4% - FY2024: -11.5% - FY2025: -11.4% ## Holders ## Price story Down 28% since Feb 2026 · sales +6.7% Story as of 2026-10-16T10:00:02.453Z; price observation 2026-10-15. Price needs cash profits to grow 9.2% a year for ten years ### Sales · FY2024–2025 sales +6.7%; source https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm; observed 2026-02-24. - FY2016: BRL 43B - FY2017: BRL 43B - FY2018: BRL 43B - FY2019: BRL 44B - FY2020: BRL 43B - FY2021: BRL 44B - FY2022: BRL 48B - FY2023: BRL 52B - FY2024: BRL 56B - FY2025: BRL 60B ### Gross margin · FY2025 gross margin 40.4%; source https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm; observed 2026-02-24. - FY2016: 51.0% - FY2017: 53.1% - FY2018: 51.6% - FY2019: 49.9% - FY2020: 47.4% - FY2021: 43.7% - FY2022: 42.9% - FY2023: 43.5% - FY2024: 43.9% - FY2025: 40.4% ## Owner memo Memo as of 2026-10-16T08:06:05.509Z. ### How it makes money Operates in telecom services; annual sales are BRL 59.6 billion. - Source: https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm (filed 2026-02-24); FY2025: revenue 59595000000; grossProfit 24092863000; margin = grossProfit / revenue. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VIVT3.SA: Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line voice services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as value-added, prepaid plans with data sharing features, family plans, voice mail, caller identification, voice minutes in unlimited bundles to mobile and fixed-line phones, and digital services, and wireless roaming services. The company also offers data services, including broadband and mobile data services; fixed-line local services consist of activation, monthly subscription, public telephones and measured services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities and other services; wholesale services, including interconnection services to users of other network providers; and digital services that include entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices and accessories, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc; insurance services; and sale of wireless devices and consumer electronics. It markets and sells its solutions through Vivo stores, dealers, retail channels, distribution and digital channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. - TELESP and changed its name to Telefônica Brasil S.A. in October 2011. Telefônica Brasil S.A. was incorporated in 1998 and is headquartered in São Paulo, Brazil. ### Why customers stay Margins ranged from 40.4% to 43.9% during 2023–25; it earns 11.4% on its capital. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 43.5%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 43.9%. - Source: https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 40.4%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.10072300819147599],[2017,0.10497377013915397],[2018,0.1459250483961584],[2019,0.09756069807931075],[2020,0.09675981370595882],[2021,0.12297401005275375],[2022,0.09381219045997116],[2023,0.1243939506245319],[2024,0.12454407057887523],[2025,0.14121663834673445]]; median 0.11397389009595386. ROIC follows the displayed moat series; financial companies use return on tangible equity. ### Can it raise prices Kept about a 43% gross margin through 2022 cost inflation. - Source: https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.4372042149758407],[2022,0.4289963261088481],[2023,0.4354066267485482]]; range within 2 percentage points. ### Where the cash goes Paid dividends in 10 of 10 years; bought back BRL 3.7 billion of shares. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 7470869000; owner earnings 4268779000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 473769869.15449905; upkeep 7893890130.845501; owner earnings 4568633869.154499. Growth capex / owner earnings = 0.10370055529141756. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 148835000; upkeep 8368623000; owner earnings 8928258000. Growth capex / owner earnings = 0.016670105187372497. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 8838641000; owner earnings 5243934800. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 8289264000; owner earnings 5545005400. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 9295484000; owner earnings 6736191200. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 9894116000; owner earnings 4444249400. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 8811346000; owner earnings 6888408200. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 9324123000; owner earnings 7376788800. Growth capex / owner earnings = 0. - Source: https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 9457557000; owner earnings 8568182200. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,2966384000],[2017,3668551000],[2018,4136878000],[2019,6176842000],[2020,5259367000],[2021,4901326000],[2022,5709263000],[2023,3832612000],[2024,2532399000],[2025,2187402000]]. Zero only counted when supported by a complete cash-flow statement. - Source: https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 3694108000 BRL. ### Are managers owners Insiders own 77.1% of the company. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VIVT3.SA SharesStats.PercentInsiders = 77.125 percentage points; cache date 2026-10-16. ### What could break it US import tariffs could raise product costs. - Source: https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm (filed 2026-02-24); the international capital markets will remain open to Brazilian companies or that the resulting interest rates in such markets will be advantageous to us. Decreased foreign investment in Brazil may negatively affect growth and liquidity in the Brazilian economy, which in turn may have a negative impact on our business. Disruption or volatility in the global financial markets could further increase negative effects on the financial and economic environment in Brazil, which could have a material adverse effect on us. Moreover, in recent periods, the United States has announced and implemented tariff measures affecting imports into the United States, including the imposition of a broadly applicable additional tariff that began being collected in April 2025, and additional duties on certain Brazil-origin articles that were later modified or removed for certain products. We cannot assure you that further tariffs, export controls, sanctions, restrictions on technology or services, or other trade measures will not be adopted, expanded or re-imposed in the future. Increased tariffs and the potential for further trade restrictions may lead to a slowdown in global trade and economic activity, create supply chain disruptions and contribute to increased market volatility and uncertainty. For us, such developments could adversely affect our business and results of operations, including by: (i) adversely affecting the Brazilian economy (including through reduced export activity, currency volatility, inflation and interest rates), which may reduce demand for certain services, increase churn and bad debt expense and constrain consumer and enterprise spending; (ii) increasing the cost of, or disrupting the availability of, network equipment, devices, components, software and services that we procure directly or indirectly through global supply chains (including where suppliers pass through tariff- or compliance-related costs or face restrictions on technology transfers); (iii) increasing our capital expenditure requirements and operating costs, delaying network deployment and modernization, and requiring changes to procurement strategies, suppliers or contractual terms; and (iv) increasing volatility in the market price and liquidity of securities of Brazilian issuers, including our common shares and ADSs. Any downgrading of Brazil’s credit rating could reduce the trading price of our common shares and ADSs. We may be harmed by investors’ perceptions of risks related to Brazil’s sovereign debt credit rating. Brazil’s sovereign credit rating affects the cost and other terms upon which we are able to obtain funding. Rating agencies regularly evaluate Brazil and its sovereign ratings, which are based on a number of factors including macroeconomic trends, fiscal and budgetary conditions, indebtedness metrics and the perspective of changes in any of these factors. ### What the price says The price assumes cash profits grow 9.2% yearly over ten years; actual growth was 10.1%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.11993664691647521. Price 31.22; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.0192210666941435 → FY2025 2.6579067010210142. Closing-price date 2026-10-15. ## Monthly share-price history (BRL per share) - 2016-10: BRL 18.85 per share - 2016-11: BRL 18.38 per share - 2016-12: BRL 18.20 per share - 2017-01: BRL 19.10 per share - 2017-02: BRL 18.73 per share - 2017-03: BRL 17.75 per share - 2017-04: BRL 18.51 per share - 2017-05: BRL 18.88 per share - 2017-06: BRL 18.16 per share - 2017-07: BRL 18.90 per share - 2017-08: BRL 20.58 per share - 2017-09: BRL 21.56 per share - 2017-10: BRL 21.66 per share - 2017-11: BRL 19.47 per share - 2017-12: BRL 20.60 per share - 2018-01: BRL 21.78 per share - 2018-02: BRL 21.06 per share - 2018-03: BRL 22.10 per share - 2018-04: BRL 22.05 per share - 2018-05: BRL 20.75 per share - 2018-06: BRL 21.10 per share - 2018-07: BRL 18.79 per share - 2018-08: BRL 18.30 per share - 2018-09: BRL 18.15 per share - 2018-10: BRL 19.50 per share - 2018-11: BRL 21.63 per share - 2018-12: BRL 20.65 per share - 2019-01: BRL 20.80 per share - 2019-02: BRL 21.57 per share - 2019-03: BRL 22.00 per share - 2019-04: BRL 20.85 per share - 2019-05: BRL 21.38 per share - 2019-06: BRL 21.13 per share - 2019-07: BRL 22.50 per share - 2019-08: BRL 22.99 per share - 2019-09: BRL 22.36 per share - 2019-10: BRL 22.25 per share - 2019-11: BRL 23.15 per share - 2019-12: BRL 24.52 per share - 2020-01: BRL 26.19 per share - 2020-02: BRL 24.30 per share - 2020-03: BRL 25.30 per share - 2020-04: BRL 23.20 per share - 2020-05: BRL 23.41 per share - 2020-06: BRL 24.20 per share - 2020-07: BRL 26.28 per share - 2020-08: BRL 24.25 per share - 2020-09: BRL 22.06 per share - 2020-10: BRL 21.34 per share - 2020-11: BRL 22.38 per share - 2020-12: BRL 23.25 per share - 2021-01: BRL 22.60 per share - 2021-02: BRL 22.00 per share - 2021-03: BRL 22.12 per share - 2021-04: BRL 21.60 per share - 2021-05: BRL 22.10 per share - 2021-06: BRL 21.00 per share - 2021-07: BRL 20.61 per share - 2021-08: BRL 21.87 per share - 2021-09: BRL 21.44 per share - 2021-10: BRL 22.76 per share - 2021-11: BRL 25.15 per share - 2021-12: BRL 24.10 per share - 2022-01: BRL 24.84 per share - 2022-02: BRL 25.09 per share - 2022-03: BRL 26.85 per share - 2022-04: BRL 26.60 per share - 2022-05: BRL 25.53 per share - 2022-06: BRL 23.53 per share - 2022-07: BRL 22.30 per share - 2022-08: BRL 20.57 per share - 2022-09: BRL 20.25 per share - 2022-10: BRL 20.66 per share - 2022-11: BRL 19.03 per share - 2022-12: BRL 19.18 per share - 2023-01: BRL 20.91 per share - 2023-02: BRL 19.47 per share - 2023-03: BRL 19.33 per share - 2023-04: BRL 20.56 per share - 2023-05: BRL 20.00 per share - 2023-06: BRL 21.64 per share - 2023-07: BRL 21.06 per share - 2023-08: BRL 20.68 per share - 2023-09: BRL 21.59 per share - 2023-10: BRL 22.62 per share - 2023-11: BRL 26.38 per share - 2023-12: BRL 26.72 per share - 2024-01: BRL 25.68 per share - 2024-02: BRL 27.24 per share - 2024-03: BRL 25.30 per share - 2024-04: BRL 23.67 per share - 2024-05: BRL 21.65 per share - 2024-06: BRL 22.67 per share - 2024-07: BRL 24.26 per share - 2024-08: BRL 25.92 per share - 2024-09: BRL 27.91 per share - 2024-10: BRL 26.32 per share - 2024-11: BRL 24.76 per share - 2024-12: BRL 23.39 per share - 2025-01: BRL 25.94 per share - 2025-02: BRL 24.17 per share - 2025-03: BRL 24.92 per share - 2025-04: BRL 27.79 per share - 2025-05: BRL 28.66 per share - 2025-06: BRL 30.89 per share - 2025-07: BRL 31.48 per share - 2025-08: BRL 33.87 per share - 2025-09: BRL 34.07 per share - 2025-10: BRL 32.04 per share - 2025-11: BRL 35.43 per share - 2025-12: BRL 33.10 per share - 2026-01: BRL 37.38 per share - 2026-02: BRL 43.18 per share - 2026-03: BRL 41.23 per share - 2026-04: BRL 39.25 per share - 2026-05: BRL 33.82 per share - 2026-06: BRL 33.95 per share - 2026-07: BRL 32.63 per share - 2026-08: BRL 29.85 per share - 2026-09: BRL 29.81 per share - 2026-10: BRL 30.69 per share ## Annual estimated value (BRL per share) - FY2016: low BRL 8.84 per share, central BRL 9.36 per share, high BRL 9.95 per share - FY2017: low BRL 8.65 per share, central BRL 9.17 per share, high BRL 9.78 per share - FY2018: low BRL 8.49 per share, central BRL 9.02 per share, high BRL 9.63 per share - FY2019: low BRL 9.05 per share, central BRL 9.62 per share, high BRL 10.28 per share - FY2020: low BRL 10.52 per share, central BRL 11.14 per share, high BRL 11.86 per share - FY2021: low BRL 11.78 per share, central BRL 12.47 per share, high BRL 13.27 per share - FY2022: low BRL 11.48 per share, central BRL 12.24 per share, high BRL 13.11 per share - FY2023: low BRL 13.11 per share, central BRL 13.94 per share, high BRL 14.89 per share - FY2024: low BRL 15.16 per share, central BRL 16.08 per share, high BRL 17.14 per share - FY2025: low BRL 16.53 per share, central BRL 17.53 per share, high BRL 18.69 per share Historical values use today's bond yield for every fiscal year Historical values use today's FX rate into trading currency for every fiscal year Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates Prior published observations retained from 2026-10-15T06:40:32.886Z where newer inputs omit a numeric field or fiscal period. ## Sources [Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1066119/000207097926000018/viv-20251231.htm); period 2025-12-31, filed 2026-02-24. Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights. ## Reported holder observations