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Oi SA (OIBRQ)
OTHER OTC:OIBRQ
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Oi SA
(OTC:OIBRQ)
Select Model
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Rating:37Underperform
Price Target:
$0.94
▲(43.85% Upside)
Oi SA's overall stock score is severely impacted by its poor financial performance, which is characterized by declining revenues, persistent losses, high leverage, and negative cash flows. The technical analysis further supports a bearish outlook with all indicators pointing to oversold conditions. The valuation metrics, while suggesting potential undervaluation, are overshadowed by the company's financial distress. Without any positive earnings call insights or notable corporate events, the stock remains highly risky.
Positive Factors
Digital Transformation Focus
Oi SA's focus on digital transformation could enhance operational efficiency and service delivery, potentially improving long-term profitability and market competitiveness.
Diverse Revenue Streams
A diverse revenue base across multiple telecom services can provide resilience against market fluctuations and support stable long-term growth.
Strategic Partnerships
Strategic partnerships can expand Oi's market reach and improve service offerings, fostering growth and competitive advantage in the telecom industry.
Negative Factors
High Leverage
High leverage and negative equity pose significant risks to financial stability, limiting Oi's ability to invest in growth and manage economic downturns.
Declining Revenues
Significant revenue decline indicates operational challenges and market share loss, threatening long-term viability and competitive positioning.
Negative Cash Flows
Negative cash flows highlight liquidity issues, constraining Oi's ability to fund operations and invest in strategic initiatives, impacting long-term growth.
Oi SA (OIBRQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.95M
Dividend YieldN/A
Average Volume (3M)4.00
Price to Earnings (P/E)<0.1
Beta (1Y)16599.05
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees6,490
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding788,636
10 Day Avg. Volume12
30 Day Avg. Volume4
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 Cap1.68K
Enterprise Value/Revenue51.19
Enterprise Value/Gross Profit-6.17
Enterprise Value/Ebitda9.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Oi SA Business Overview & Revenue Model
Company DescriptionOi SA (OIBRQ) is a telecommunications company based in Brazil, primarily engaged in providing a wide range of communication services, including fixed-line and mobile telephony, broadband internet, and pay television. The company operates in various sectors, including residential, corporate, and wholesale telecommunications services, aiming to enhance connectivity and digital solutions for its diverse customer base.
How the Company Makes MoneyOi SA generates revenue through multiple streams, primarily from subscription and usage fees for its telecommunications services. Key revenue sources include fixed-line voice services, mobile services, broadband internet subscriptions, and pay TV services. The company also earns income from the sale of equipment and devices associated with its services. Additionally, Oi engages in partnerships with other telecom operators and technology providers to enhance its service offerings and expand its market reach, which contributes to its overall earnings. The company has also explored various business strategies, including restructuring its operations and focusing on digital transformation, to improve profitability and streamline costs.
Oi SA Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Mar 25, 2026
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 is facing significant financial challenges across all verticals. The income statement reflects declining revenues and persistent losses, while the balance sheet shows high leverage and negative equity, posing risks to financial stability. Cash flow issues further exacerbate the situation, with negative cash flows indicating liquidity concerns. The company needs strategic restructuring to improve its financial health.Income Statement
The income statement shows significant challenges, with negative gross and net profit margins indicating ongoing losses. Revenue has drastically declined by 86.27% in the TTM period, reflecting severe operational difficulties. Despite a positive EBITDA margin, the overall profitability remains weak.20
Very Negative
Balance Sheet
The balance sheet reveals a precarious financial position, with negative stockholders' equity and a high debt load. The debt-to-equity ratio is negative, indicating more liabilities than equity, which poses a risk to financial stability. Return on equity is also negative, highlighting inefficiencies in generating returns on shareholder investments.15
Very Negative
Cash Flow
Cash flow analysis shows negative operating and free cash flows, indicating cash outflows from operations. The free cash flow to net income ratio is positive, suggesting some efficiency in converting income to cash, but overall cash flow health is poor due to negative growth and coverage ratios.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 227.75M | 3.18B | 4.26B | 10.49B | 10.48B | 10.93B |
| Gross Profit | -1.89B | -1.45B | -681.56M | -198.26M | 435.88M | 2.01B |
| EBITDA | 1.23B | 13.89B | 620.72M | -11.55B | -1.29B | 1.09B |
| Net Income | -1.84B | 9.61B | -5.43B | -19.27B | -10.43B | -11.05B |
Balance Sheet | ||||||
| Total Assets | 18.73B | 19.76B | 26.12B | 29.62B | 76.04B | 73.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.75B | 2.18B | 3.21B | 3.11B | 4.30B |
| Total Debt | 12.60B | 13.80B | 25.49B | 22.30B | 36.17B | 29.33B |
| Total Liabilities | 34.20B | 36.05B | 53.41B | 51.46B | 78.67B | 66.07B |
| Stockholders Equity | -15.50B | -16.32B | -27.32B | -21.88B | -2.67B | 7.75B |
Cash Flow | ||||||
| Free Cash Flow | -609.33M | -1.41B | -2.97B | -4.03B | -3.61B | 951.57M |
| Operating Cash Flow | -529.90M | -1.34B | -2.80B | -2.59B | -110.63M | 4.41B |
| Investing Cash Flow | 98.22M | 166.53M | 1.31B | 17.42B | -4.80B | -3.46B |
| Financing Cash Flow | -281.18M | 969.36M | 250.45M | -14.85B | 3.78B | 799.63M |
Oi SA Technical Analysis
Negative
0.65
Price Trends
1.24
Negative
0.92
Negative
0.51
Positive
Market Momentum
-0.15
Negative
8.68
Positive
0.00
Neutral
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 0.65 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 1.24, and above the 200-day MA of 0.51, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 8.68 is Positive, neither overbought nor oversold. The STOCH value of 0.00 is Neutral, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.43B | 18.29 | 8.36% | 5.03% | -3.16% | 4.70% | |
75 Outperform | $3.77B | 5.84 | 53.38% | ― | 6.42% | ― | |
74 Outperform | $5.34B | 12.94 | 7.60% | 5.57% | 19.02% | 9.26% | |
61 Neutral | $4.93B | -31.95 | -2.95% | 0.40% | 15.38% | -292.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
45 Neutral | $21.93B | -9.86 | -0.70% | 7.47% | -5.49% | -75.51% | |
37 Underperform | $6.95M | <0.01 | ― | ― | ― | ― |
* Communication Services Sector Average
OIBRQ
Oi SA
0.67
0.57
570.00%
TEO
Telecom Argentina
10.93
-1.39
-11.28%
VIV
Telefonica Brasil
12.06
4.19
53.24%
TEF
Telefonica
3.81
>-0.01
-0.18%
TKC
Turkcell Iletisim
6.09
-0.74
-10.89%
VEON
VEON
54.50
8.81
19.28%
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.