VIV (Telefonica Brasil) Profitability Rank: 8 (As of Jun. 2026) — 14% Above Median

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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

VIV Telefonica Brasil SA VIV
86 GF Score
Price $12.20
GF Value $12.69
Valuation Fairly Valued
! 3 Warning Signs
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What is Telefonica Brasil Profitability Rank?

Telefonica Brasil VIV -0.97% 86 Profitability Rank is 8 as of Jun. 2026, which is 14% above its 10-year median of 7.00. GuruFocus rates VIV with a GF Score™ of 86/100 and a GF Value™ of $12.69 (Fairly Valued). The stock has 3 warning signs investors should review.

Telefonica Brasil has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Telefonica Brasil's Operating Margin % for the quarter that ended in Jun. 2026 was 16.48%. As of today, Telefonica Brasil's Piotroski F-Score is 6.


Telefonica Brasil Profitability Rank Related Terms


VIV vs VZ, TMUS, T: Profitability Rank Comparison

For the Telecom Services subindustry, Telefonica Brasil's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Telefonica Brasil Profitability Rank vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Telefonica Brasil's Profitability Rank falls into.


VIV
86GF Score
Telefonica Brasil SA VIV
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Telefonica Brasil Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Telefonica Brasil has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Telefonica Brasil's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=506.821 / 3075.077
=16.48 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Telefonica Brasil has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Telefonica Brasil SA operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 8 mean?
Telefonica Brasil (VIV) has a Profitability Rank of 8 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Telefonica Brasil and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Telefonica Brasil's Profitability Rank has ranged from 6.00 to 8.00.
Is Telefonica Brasil's Profitability Rank too high?
Telefonica Brasil's current Profitability Rank of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 8.00. Overall, Telefonica Brasil has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Profitability Rank compare to VZ and TMUS?
Telefonica Brasil's Profitability Rank of 8 can be compared against companies in the Telecommunication Services industry. Historically, Telefonica Brasil's own Profitability Rank has ranged from 6.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Telecommunication Services company?
A good Profitability Rank depends on the Telecommunication Services industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Telefonica Brasil and its competitors. Telefonica Brasil's current Profitability Rank is 8, which is 14% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (VIV) is currently considered Fairly Valued. The stock's GF Value™ is $12.69, compared to a current price of $12.20 — trading 3.9% below its estimated fair value. The current Profitability Rank is 8, which is 14% above median its 10-year median of 7.00. Telefonica Brasil's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Telefonica Brasil (VIV), the current Profitability Rank is 8 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Telefonica Brasil (VIV) Overvalued in 2026?

Based on GuruFocus' analysis, Telefonica Brasil stock appears to be undervalued. The current stock price of $12.20 is trading 3.9% below its estimated GF Value™ of $12.69. GuruFocus considers Telefonica Brasil to be Fairly Valued.

Key valuation signals for VIV:

  • Profitability Rank: 8 (14% above median its 10-year median of 7.00)
  • GF Value™: $12.69 vs. price of $12.20 (3.9% below fair value)
  • GF Score™: 86/100 with 3 warning signs

No single metric tells the full story. See the VIV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Telefonica Brasil Business Description

Address Avenida Engenheiro Luis Carlos Berrini, 1376, 32nd Floor, Sao Paulo, SP, BRA, 04571-936
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
86GF Score

Get the complete analysis for VIV

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$12.20
Price
$12.69
GF Value