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Oi SA (OIBRQ)
OTHER OTC:OIBRQ
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Oi SA
(OTC:OIBRQ)
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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
$35.53M
Dividend YieldN/A
Average Volume (3M)11.00
Price to Earnings (P/E)<0.1
Beta (1Y)15357.25
Revenue Growth-14.43%
EPS GrowthN/A
CountryUS
Employees6,490
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.91
Shares Outstanding788,636
10 Day Avg. Volume0
30 Day Avg. Volume11
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)>-0.01
Price to Sales (P/S)0.00796
P/FCF Ratio-0.02
Enterprise Value/Market Cap55.34
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit-10.85
Enterprise Value/Ebitda0.12
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering0
Oi SA Business Overview & Revenue Model
Company DescriptionOi S.A., a switched fixed-line telephony services concessionaire, provides telecommunication services in Brazil. The company offers fixed telephony services, including voice, data communication, and pay TV services; local and intraregional long-distance carrier services; domestic and international long-distance services; mobile telecommunications and corporate solutions; and maintenance, and repair services. It also provides call center and telemarketing, Internet, network, and Wi-Fi Internet services; and financial, and payment and credit system services. In addition, the company engages in the investment management activities, as well as raising funds in the international market. It serves residential, subscription and prepaid, mobile broadband, small, medium-sized, and large corporate customers. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1998 and is headquartered in Rio de Janeiro, Brazil. On June 20, 2016, Oi S.A. along with its subsidiaries filed for bankruptcy protection.
How the Company Makes MoneyOi generates revenue primarily through its telecommunications services, including mobile and fixed-line voice services, broadband internet access, and pay television subscriptions. The company's revenue model is based on monthly service fees, usage charges for voice calls, and sales of equipment and accessories. Key revenue streams include mobile services, which comprise prepaid and postpaid plans, as well as fixed broadband services targeted at both residential and enterprise customers. Oi also engages in partnerships with content providers and technology companies, enhancing its service portfolio and driving additional revenue through bundled offerings. The company faces competition in the Brazilian telecom market, which influences pricing strategies and customer acquisition efforts.
Oi SA Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call detailed significant growth and strategic advancements in Oi Soluções and cost savings through legacy demobilization. Despite these positive strides, the overall revenue decline and cash burn issues present ongoing challenges. The sentiment is cautiously optimistic with substantial progress in some areas overshadowed by revenue and cash flow concerns.Q1-2025 Updates
Positive Updates
Oi Soluções Revenue Growth
Oi Soluções strengthened its presence in the cloud computing segment, growing at an annual rate of over 30% at the end of 2024. The company won bids and signed contracts totaling R$53 million in new revenue in early 2025.
Cost Savings through Legacy Demobilization
The company achieved a cost saving of about R$1 billion from January 2024 to March 2025 through the demobilization of the legacy network, with an estimated total accumulated saving of approximately R$2.5 billion by the end of 2025.
Reduction in Operating Expenses
There was a 19% reduction in operating expenses and investments in the first quarter of 2025 due to the company's focus on operational efficiency and selective capital allocation.
Growth in Subsidiary Revenues
Revenues from domestic subsidiaries grew by 19% year-on-year, driven by the start of operations of Oi Services following the sale of ClientCo.
ICT Solutions Growth
ICT services within Oi Soluções experienced growth, with cloud services revenue increasing by 8% year-on-year, UC&C revenues growing by 30%, and IoT revenues increasing by 12%.
Negative Updates
Decline in Total Revenue
Consolidated net revenue fell 34.3% compared to the first quarter of 2024, largely due to the exit of fiber and TV operations in February, contributing to these revenues for only two months in the quarter.
Decrease in Oi Soluções Revenue
Oi Soluções revenues, which account for approximately 60% of total revenues, fell by 21% year-on-year due to the continued reduction in demand for legacy services and a focus on profitability.
Cash Burn and Limited Cash Availability
Cash balance at the end of the period was BRL 1.5 billion with a cash burn of 18% in the quarter. Some of this cash is tied to specific obligations and is not entirely available for use.
Company Guidance
During the First Quarter 2025 Earnings Call, Oi SA provided comprehensive guidance on its financial and operational performance. The company highlighted significant developments, such as the strengthening of Oi Soluções, which is the core revenue driver with 60% of total revenue, despite a 21% year-on-year decline. Oi Soluções' cloud services grew by 8%, while UC&C and IoT services increased by 30% and 12% respectively. Meanwhile, domestic subsidiaries saw a 19% revenue increase, driven by new ventures like Oi Services. Overall, Nova Oi reported revenues of R$631 million, marking a 27% year-on-year decline, primarily due to a reduction in non-core revenues. Operational efficiency measures led to a 19% reduction in OpEx and investments. Despite these efforts, consolidated net revenue fell by 34.3% compared to the previous year, largely due to the exit of fiber and TV operations. The company aims to complete legacy demobilization by year-end, projecting savings of approximately R$2.5 billion. The cash balance stood at R$1.5 billion, with an 18% cash burn in the quarter, signaling ongoing financial challenges. Oi continues to focus on transitioning to digital solutions and optimizing its cost structure to enhance profitability.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
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.30
Negative
Balance Sheet
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.20
Very Negative
Cash Flow
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.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.81B | 3.18B | 4.26B | 10.49B | 9.28B | 20.14B |
| Gross Profit | -181.13M | -1.45B | -681.56M | -198.26M | 2.01B | 4.82B |
| EBITDA | 16.65B | 13.89B | 620.72M | -11.55B | 1.09B | 4.15B |
| Net Income | 14.05B | 9.61B | -5.43B | -19.27B | -11.05B | -9.10B |
Balance Sheet | ||||||
| Total Assets | 19.64B | 19.76B | 26.12B | 29.62B | 73.84B | 71.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 1.75B | 2.18B | 3.21B | 4.30B | 2.27B |
| Total Debt | 12.97B | 11.95B | 25.49B | 22.30B | 29.33B | 26.38B |
| Total Liabilities | 34.28B | 36.05B | 53.41B | 51.46B | 66.07B | 54.10B |
| Stockholders Equity | -14.66B | -16.32B | -27.32B | -21.88B | 7.75B | 17.65B |
Cash Flow | ||||||
| Free Cash Flow | -772.37M | -1.41B | -2.97B | -4.03B | 951.57M | -5.11B |
| Operating Cash Flow | -824.79M | -1.34B | -2.80B | -2.59B | 4.41B | 2.31B |
| Investing Cash Flow | 175.81M | 166.53M | 1.31B | 17.42B | -3.14B | -6.85B |
| Financing Cash Flow | 587.66M | 969.36M | 250.45M | -14.85B | 799.63M | 2.24B |
Oi SA Technical Analysis
Negative
0.10
Price Trends
0.10
Negative
0.10
Positive
0.43
Negative
Market Momentum
>-0.01
Negative
38.88
Neutral
>-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 0.43, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.88 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 5.06B | 11.59 | 11.17% | 5.51% | 19.25% | 5.69% | |
72 Outperform | 20.54B | 20.12 | 7.96% | 4.17% | -6.51% | -0.21% | |
68 Neutral | 62.63B | 21.60 | 11.57% | 2.55% | -0.64% | 56.92% | |
61 Neutral | 4.29B | -162.95 | -0.54% | 46.28% | -3.65% | -134.04% | |
56 Neutral | 30.30B | -12.16 | -13.79% | 6.64% | -4.73% | -251.31% | |
33 Underperform | $35.53M | <0.01 | ― | -14.43% | ― | ||
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
OIBRQ
Oi SA
0.10
-3.84
-97.46%
AMX
America Movil
20.50
4.91
31.49%
VIV
Telefonica Brasil
12.76
3.24
34.03%
TEF
Telefonica
5.37
0.78
16.99%
TKC
Turkcell Iletisim
5.87
-0.82
-12.26%
AD
Array Digital Infrastructure
49.70
11.26
29.29%
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.