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Oi SA (OIBRQ)
OTHER OTC:OIBRQ
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Oi SA
(OTC:OIBRQ)
Select Model
Select Model
Rating:37Underperform
Price Target:
$0.94
▼(-6.50% Downside)
Oi SA's overall stock score is heavily impacted by its dire financial performance, with significant challenges across income, balance sheet, and cash flow statements. Technical analysis further supports a negative outlook with bearish indicators. The valuation appears low, but this is overshadowed by the company's financial distress, making it a high-risk investment.
Positive Factors
Service Portfolio Expansion
Partnerships with content and tech companies enhance Oi's service offerings, potentially increasing customer retention and revenue through bundled services.
Integrated Communication Solutions
Offering integrated solutions can strengthen customer relationships and provide a competitive edge in the telecom market, supporting long-term growth.
Restructuring Efforts
The restructuring process aims to enhance service offerings and operational efficiency, which could improve financial health and market position over time.
Negative Factors
High Debt Levels
High debt levels and negative equity pose risks to financial stability, limiting Oi's ability to invest in growth and respond to market changes.
Declining Revenue
Significant revenue decline reflects operational challenges and competitive pressures, threatening Oi's ability to sustain its market position.
Negative Cash Flows
Negative cash flows indicate liquidity issues, constraining Oi's capacity to fund operations and invest in strategic initiatives, impacting long-term viability.
Oi SA (OIBRQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.65M
Dividend YieldN/A
Average Volume (3M)4.00
Price to Earnings (P/E)<0.1
Beta (1Y)15420.36
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 Cap105.42
Enterprise Value/Revenue8.63
Enterprise Value/Gross Profit-1.04
Enterprise Value/Ebitda1.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
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:Apr 01, 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
1.00
Price Trends
1.40
Negative
0.75
Positive
0.42
Positive
Market Momentum
>-0.01
Positive
11.23
Positive
<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 1 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.40, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 11.23 is Positive, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.73B | 18.44 | 8.36% | 4.88% | -3.16% | 4.70% | |
75 Outperform | $3.60B | 5.58 | 48.17% | ― | 6.42% | ― | |
74 Outperform | $5.00B | 11.43 | 7.60% | 5.56% | 19.02% | 9.26% | |
61 Neutral | $5.73B | ― | -2.95% | 0.36% | 15.38% | -292.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
45 Neutral | $23.86B | ― | -0.70% | 7.81% | -5.49% | -75.51% | |
37 Underperform | $18.65M | 0.02 | ― | ― | ― | ― |
* Communication Services Sector Average
OIBRQ
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VEON
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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.