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Oi SA (OIBZQ)
OTHER OTC:OIBZQ
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Oi SA
(OTC:OIBZQ)
Rating:38Underperform
Price Target:―
Oi SA (OIBZQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.23M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)<0.1
Beta (1Y)-128280.77
Revenue Growth-14.43%
EPS GrowthN/A
CountryUS
Employees6,490
SectorCommunication Services
Sector Strength89
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.40
Shares Outstanding65,708,890
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-0.02
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 (OIBZQ) is a Brazilian telecommunications company that provides a wide range of services, including fixed-line and mobile telecommunications, broadband internet, and pay television. The company operates primarily in Brazil and is one of the largest providers in the country. Oi SA is focused on delivering integrated telecommunications solutions to both residential and business customers, leveraging its extensive network infrastructure.
How the Company Makes MoneyOi SA generates revenue through multiple streams, primarily from its telecommunications services. The company earns income from providing fixed-line telephony services, mobile voice and data services, and broadband internet access. Additionally, Oi SA offers pay television services, contributing to its revenue. The company also benefits from its business solutions segment, serving corporate clients with tailored telecommunications and IT solutions. Oi SA's earnings are influenced by its strategic partnerships with technology providers and its investments in infrastructure to enhance service quality and expand its customer base.
Oi SA Financial Statement Overview
Summary
Oi SA's financial performance is concerning, with negative equity indicating insolvency risk and a struggle to generate positive cash flow. Despite a positive net profit margin, this is misleading due to historical losses. Revenue growth is negative, and financial instability is evident across income, balance sheet, and cash flow metrics.Income Statement
The income statement reveals significant challenges for Oi SA. The gross profit margin is negative in the TTM period, indicating costs exceed revenue. Although the net profit margin is positive due to a high net income figure in TTM, this is misleading given historical losses. Revenue growth is negative, and EBIT and EBITDA margins are inconsistent, showing financial instability.35
Negative
Balance Sheet
Oi SA's balance sheet highlights a precarious financial position, with negative stockholders' equity indicating insolvency risk. The debt-to-equity ratio is not calculable due to negative equity, while the equity ratio is also negative, further emphasizing balance sheet weaknesses.20
Very Negative
Cash Flow
Cash flow analysis shows continued distress, with negative free cash flow growth and a negative operating cash flow to net income ratio. The company struggles to generate cash from operations, raising concerns about sustainability without external financing.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.74B | 9.72B | 10.49B | 9.28B | 20.14B | 22.06B | Gross Profit |
| -487.05M | 433.59M | -198.26M | 2.01B | 4.82B | 14.18B | EBIT |
| 16.35B | 0.00 | -15.63B | -3.25B | -2.73B | -5.27B | EBITDA |
| 18.41B | 763.55M | -11.55B | 1.09B | 4.15B | 31.79B | Net Income Common Stockholders |
| 12.03B | -5.43B | -19.27B | -11.05B | -9.10B | 24.62B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.05B | 2.18B | 3.21B | 4.30B | 2.27B | 4.59B | Total Assets |
| 26.89B | 26.12B | 29.62B | 73.84B | 71.89B | 65.44B | Total Debt |
| 4.37B | 25.49B | 22.30B | 29.33B | 26.38B | 16.45B | Net Debt |
| 1.15B | 23.70B | 19.30B | 25.22B | 24.29B | 12.06B | Total Liabilities |
| 15.55B | 53.41B | 51.46B | 66.07B | 54.10B | 42.54B | Stockholders Equity |
| 11.34B | -27.32B | -21.88B | 7.75B | 17.65B | 22.65B |
| Cash Flow | Free Cash Flow | ||||
| -3.63B | -3.54B | -4.03B | 951.57M | -5.11B | -2.38B | Operating Cash Flow |
| -3.07B | -2.80B | -2.59B | 4.41B | 2.31B | 2.86B | Investing Cash Flow |
| 804.25M | 1.31B | 17.42B | -3.14B | -6.85B | -4.92B | Financing Cash Flow |
| 16.29B | 250.45M | -14.85B | 799.63M | 2.24B | -424.34M |
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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $182.65B | 10.29 | 18.23% | 6.23% | 0.93% | 56.97% | |
76 Outperform | $275.78B | 23.67 | 19.35% | 1.26% | 5.31% | 38.46% | |
69 Neutral | $195.94B | 16.72 | 11.38% | 4.05% | 0.50% | -12.66% | |
64 Neutral | $5.19B | ― | -0.84% | ― | -3.48% | -169.60% | |
64 Neutral | $6.54B | ― | -17.68% | ― | 32.25% | 20.56% | |
60 Neutral | $14.12B | 6.43 | -3.56% | 3.69% | 2.49% | -35.43% | |
38 Underperform | $38.23M | <0.01 | -81.27% | ― | -14.43% | ― |
* Communication Services Sector Average
Performance Comparison
OIBZQ
Oi SA
1.07
0.02
1.90%
T
AT&T
27.42
11.00
66.99%
USM
United States Cellular
61.08
12.86
26.67%
VZ
Verizon
43.32
6.44
17.46%
TMUS
T Mobile US
242.88
77.90
47.22%
S
SentinelOne
19.76
-1.14
-5.45%
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 reflects a mixed performance for Oi SA, with positive developments in Oi Soluções revenue growth and cost-saving initiatives offset by significant revenue declines and financial challenges, including cash burn and profitability issues.Q1-2025 Updates
Positive Updates
Oi Soluções Revenue Growth
Oi Soluções, the core component of the group, reported revenues totaling R$271 million, representing approximately 60% of total revenue and showing a focus on higher value-added segments.
Revenue from Domestic Subsidiaries
Revenues from domestic subsidiaries grew by nearly 19% year-on-year, driven by the closure of the sale of ClientCo and the performance of Serede and Tahto.
Cost Savings from Legacy Network Demobilization
Cost-saving initiatives resulted in approximately R$1 billion saved from January 2024 to March 2025, with an estimated total accumulated saving of approximately R$2.5 billion by the end of 2025.
Reduction in Operating Expenses
The company achieved a 19% reduction in operating expenses and investments in the quarter.
Growing Cloud and ICT Services
ICT solutions, including cloud services, UC&C, and IoT, posted growth, with cloud services revenue increasing by 8% year-on-year.
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.
Consolidated Net Revenue Drop
Consolidated net revenue fell 34.3% compared to the first quarter of 2024, affected by the exit of fiber and TV operations.
Cash Burn and Financial Challenges
The company experienced a cash burn of 18% in the quarter, with a significant portion of cash tied to specific obligations and conditions.
Routine EBITDA Impact
Routine EBITDA continued to be impacted by the costs of legacy services, which remain high, reflecting challenges in improving profitability.
Company Guidance
In the first quarter of 2025, Oi SA reported a significant transformation in its business structure following the conclusion of mergers and acquisitions at the end of February 2024. The company highlighted three main service components: Oi Soluções, which is the primary revenue driver with a strong presence in both private and public sectors; newly operational Oi Services, contributing to consolidated revenue results starting in March; and the Legacy component, which is being optimized for cost reduction. For the first quarter, Oi's total revenue was R$631 million, reflecting a 27% year-on-year decline attributed to the reduction in non-core revenues. Oi Soluções generated R$271 million, accounting for approximately 60% of total revenue, while revenues from domestic subsidiaries grew by 19% year-on-year, driven by new operations like Oi Services. The company reported a 21% year-on-year decline in routine operating expenses to BRL 9 billion, with significant cost savings anticipated from ongoing demobilization of legacy networks. The quarter also saw a 44% year-on-year reduction in CapEx to $78 million. Despite a cash balance of BRL 1.5 billion, Oi continues to face cash burn challenges, with a focus on strengthening its financial sustainability and exploring new funding alternatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.