Oi SA (OIBRQ) AI Stock Analysis

Compare

78 Followers

Top Page

Oi SA

(OTC:OIBRQ)

Rating:33Underperform

Price Target:

$0.00

▼(-100.00%Downside)

Oi SA's stock score reflects significant financial challenges, with high leverage and negative equity being major concerns. The technical analysis indicates weak momentum, and while the stock appears undervalued, this is primarily due to extraordinary gains rather than strong underlying performance. The earnings call provides some optimism with strategic initiatives and cost savings, but the overall outlook remains cautious due to revenue declines and cash flow issues.

Oi SA (OIBRQ) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$35.33M

Dividend YieldN/A

Average Volume (3M)0.00

Price to Earnings (P/E)<0.1

Beta (1Y)15329.04

Revenue Growth-14.43%

EPS GrowthN/A

CountryUS

Employees6,490

SectorCommunication Services

Sector Strength84

IndustryTelecommunications Services

Share Statistics

EPS (TTM)1.76

Shares Outstanding788,636

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)-0.01

Price to Sales (P/S)0.00

P/FCF Ratio-0.28

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Oi SA Business Overview & Revenue Model

Company DescriptionOi SA (OIBRQ) is a Brazilian telecommunications company that provides a wide array of services, including fixed-line and mobile telephony, broadband internet, and pay television. Established in 1998 and headquartered in Rio de Janeiro, Brazil, Oi operates primarily within the Brazilian market, offering services to both residential and commercial customers. The company has historically been a significant player in the Brazilian telecom sector, catering to millions of users with its comprehensive suite of telecommunications services.

How the Company Makes MoneyOi SA generates revenue through its diversified portfolio of telecommunications services. The company's primary revenue streams include subscription fees from mobile and fixed-line telephony services, broadband internet packages, and pay television offerings. Mobile services, which include voice and data plans, are a major contributor to Oi's revenue, driven by both prepaid and postpaid customer segments. Fixed-line services provide stable income from monthly subscription charges and additional voice services. Broadband internet services are another key revenue source, with Oi offering various plans tailored to different customer needs. Additionally, revenue is bolstered through business solutions provided to corporate clients, including data transmission and IT infrastructure services. Oi SA's earnings are also influenced by strategic partnerships and collaborations with other technology and telecom firms, which enhance its service offerings and expand its market reach.

Oi SA Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q1-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 13, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed view with notable growth in Oi Soluções and significant cost-saving measures. However, there were substantial revenue declines and challenges in maintaining cash flow. The company is focusing on operational efficiency and transformation towards digital solutions.

Q1-2025 Updates

Positive Updates

Growth in Oi Soluções

Oi Soluções began 2025 by strengthening its presence in the cloud computing segment, growing at an annual rate of over 30% in late 2024. The company signed contracts totaling R$53 million in new revenue in the first month of 2025.

Domestic Subsidiaries Revenue Growth

Revenues from domestic subsidiaries grew by nearly 20% year-on-year, driven by operations in Tahto and the start of Oi Services.

Cost Savings in Legacy Network Demobilization

Projects for demobilizing the legacy network are progressing better than planned, with cost savings of about R$1 billion accumulated from January 2024 to March 2025, with an estimated total accumulated saving of R$2.5 billion by the end of 2025.

Operational Efficiency and Cost Reduction

There was a 19% reduction in operating expenses and investments this quarter, with specific reductions in sales and personnel costs.

ICT Services Growth

ICT solutions accounted for approximately 39% of Oi Soluções' total revenue in 1Q 2025, with cloud services revenue increasing by 8% year-on-year and UC&C revenues growing by 30%.

Negative Updates

Revenue Decline

Nova Oi reported a revenue of R$631 million in the quarter, down 27% year-on-year, mainly due to the reduction in non-core revenues and the exit of fiber and TV operations.

Oi Soluções Revenue Fall

Oi Soluções revenue totaled R$271 million, falling 21% year-on-year, due to the decline in demand for legacy services and a more selective commercial strategy.

Cash Balance and Burn Rate

The cash balance was R$1.5 billion at the end of the period with a cash burn of 18% in the quarter, with a significant portion of cash tied to specific obligations.

Company Guidance

During Oi SA's First Quarter 2025 Earnings Call, the company provided guidance highlighting several key metrics and strategic initiatives. Oi Soluções was emphasized as the core component driving growth, with the company winning R$53 million in new contracts in early 2025. Revenues from domestic subsidiaries increased by nearly 20% year-on-year, linked to new ventures like Oi Services, which began contributing to consolidated revenue. Despite a 27% year-on-year decline in overall revenue to R$631 million, primarily due to the exit from fiber and TV operations, Oi Soluções accounted for approximately 60% of total revenue, focusing on high-value segments like ICT services. The company achieved cost savings of about R$1 billion since January 2024 and aims for an accumulated savings of R$2.5 billion by year-end 2025 through digital solutions and network optimization. Operating expenses were reduced by 19% this quarter, while routine EBITDA and CapEx decreased by 21% and 44% respectively. The cash balance stood at R$1.5 billion with an 18% cash burn rate, and Oi continues to explore funding alternatives to address liquidity needs and drive further transformation.

Oi SA Financial Statement Overview

Summary

Oi SA's financial statements reflect significant financial distress. The company faces challenges with profitability, high leverage, and negative equity, posing a substantial risk to stakeholders. Despite a positive swing in net income due to extraordinary items, underlying operational challenges remain.

Income Statement

Negative

Oi SA's income statement reveals significant challenges. The TTM gross profit margin and EBIT margin are negative, indicating the company is operating at a loss before and after accounting for operating expenses. The net profit margin is also negative, although there is a noticeable improvement in net income compared to the previous year, shifting from a large loss to positive figures due to extraordinary gains. Revenue has decreased compared to the previous year, suggesting difficulty in maintaining sales growth.

Balance Sheet

Very Negative

The balance sheet highlights a precarious financial position with a negative stockholders' equity, resulting in a non-calculable debt-to-equity ratio. The equity ratio is negative, indicating liabilities significantly exceed assets. This situation points to a high risk of insolvency, despite some reduction in total debt compared to previous years.

Cash Flow

Negative

Cash flow analysis shows negative operating and free cash flow, suggesting an inability to generate sufficient cash from operations to cover capital expenditures. The operating cash flow to net income ratio is negative, indicating cash flow issues despite a positive net income. The free cash flow to net income ratio is also negative, reinforcing concerns about cash sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	3.18B	4.26B	10.49B	9.28B	20.14B
Gross Profit	-1.45B	-681.56M	-198.26M	2.01B	4.82B
EBITDA	13.89B	620.72M	-11.55B	1.09B	4.15B
Net Income	9.61B	-5.43B	-19.27B	-11.05B	-9.10B
Balance Sheet
Total Assets	19.76B	26.12B	29.62B	73.84B	71.89B
Cash, Cash Equivalents and Short-Term Investments	1.75B	2.18B	3.21B	4.30B	2.27B
Total Debt	11.95B	25.49B	22.30B	29.33B	26.38B
Total Liabilities	36.05B	53.41B	51.46B	66.07B	54.10B
Stockholders Equity	-16.32B	-27.32B	-21.88B	7.75B	17.65B
Cash Flow
Free Cash Flow	-1.41B	-2.97B	-4.03B	951.57M	-5.11B
Operating Cash Flow	-1.34B	-2.80B	-2.59B	4.41B	2.31B
Investing Cash Flow	166.53M	1.31B	17.42B	-3.14B	-6.85B
Financing Cash Flow	969.36M	250.45M	-14.85B	799.63M	2.24B

Oi SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.10

Price Trends

50DMA

0.10

Negative

100DMA

0.10

Negative

200DMA

1.22

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

38.94

Neutral

STOCH

>-0.01

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OIBRQ, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OIBRQ.

Oi SA Risk Analysis

Oi SA disclosed 41 risk factors in its most recent earnings report. Oi SA reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Oi SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$18.26B	17.94	7.95%	2.03%	-5.69%	-0.05%
TKC	77 Outperform	$5.01B	11.87	6.74%	4.15%	14.09%	-11.43%
AMX	71 Outperform	$53.05B	31.79	8.54%	3.12%	0.19%	-49.68%
Sector *	61 Neutral	$40.89B	-1.56	-12.05%	3.97%	2.10%	-69.66%
TEF	59 Neutral	$29.48B	―	-0.55%	4.92%	-2.29%	-182.68%
USM	57 Neutral	$5.92B	―	-0.84%	―	-4.11%	-163.81%
OIBRQ	33 Underperform	$35.33M	<0.01		―	-14.43%	―

* Communication Services Sector Average

Performance Comparison

OIBRQ

Oi SA

0.10

-1.88

-94.95%

AMX

America Movil

17.51

0.06

0.34%

VIV

Telefonica Brasil

11.22

2.67

31.23%

TEF

Telefonica

5.21

1.02

24.34%

TKC

Turkcell Iletisim

5.78

-2.00

-25.71%

USM

United States Cellular

68.70

11.16

19.40%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2025