Oi SA (OIBRQ) AI Stock Analysis

• Market Cap: $37.72M
• Dividend Yield: N/A
• Average Volume (3M): 11.00
• Price to Earnings (P/E): <0.1
• Beta (1Y): 15338.27
• Revenue Growth: -14.43%
• EPS Growth: N/A
• Country: US
• Employees: 6,490
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 788,636
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 11
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 49.74
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: -10.36
• Enterprise Value/Ebitda: 0.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 33 Underperform
• 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 Business Overview & Revenue Model

Company Description

Oi 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 Money

Oi 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 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.

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.

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.

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 Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.65, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.89 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	79 Outperform	$5.31B	12.10	7.38%	5.24%	19.25%	5.69%
VIV	72 Outperform	$20.44B	20.24	8.20%	4.22%	-6.51%	-0.21%
AMX	68 Neutral	$61.16B	21.21	14.41%	2.62%	-0.64%	56.92%
AD	61 Neutral	$4.66B	―	-0.54%	42.37%	-3.65%	-134.04%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
TEF	60 Neutral	$30.36B	―	-3.55%	6.61%	-4.73%	-251.31%
OIBRQ	33 Underperform	$37.72M	<0.01		―	-14.43%	―