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Oi SA (OIBZQ)
OTHER OTC:OIBZQ
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Oi SA
(OTC:OIBZQ)
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Rating:38Underperform
Price Target:―
Oi SA's stock score reflects severe financial challenges, with insolvency risks and negative cash flow generation weighing heavily. While recent earnings call achievements like debt reduction provide some hope, technical indicators and poor valuation metrics underscore ongoing distress. The risk of investing in this stock remains high given the precarious financial position and bearish technical outlook.
Oi SA (OIBZQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.02M
Dividend YieldN/A
Average Volume (3M)30.00
Price to Earnings (P/E)<0.1
Beta (1Y)-87489.95
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees6,490
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-2.28
Shares Outstanding65,708,890
10 Day Avg. Volume90
30 Day Avg. Volume30
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)>-0.01
Price to Sales (P/S)0.02
P/FCF Ratio-0.05
Enterprise Value/Market Cap56.69
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit-1.13
Enterprise Value/Ebitda0.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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 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 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 presented a mix of positive developments such as growth in Oi Soluções and cost savings from legacy network demobilization, alongside significant challenges including a decline in consolidated net revenue and cash burn issues. Although there are strong efforts toward operational efficiency and cost reductions, the financial health is still under pressure due to legacy service costs and funding challenges.Q1-2025 Updates
Positive Updates
Oi Soluções Revenue Growth
Oi Soluções, the group's core component, strengthened its presence in the cloud computing segment, growing at an annual rate of over 30% in late 2024. The company won bids and signed contracts totaling R$53 million in new revenue during the first month of 2025.
Cost Savings from Legacy Network Demobilization
Projects to demobilize the legacy network resulted in a cost saving of about R$1 billion from January 2024 to March 2025, with an estimated total accumulated saving of approximately R$2.5 billion by the end of 2025.
Operational Efficiency and Cost Reductions
The company achieved a 19% reduction in operating expenses and investments in the first quarter of 2025. Routine OpEx was reduced by 21% year-on-year.
Growth in Subsidiary Revenues
Revenues from domestic subsidiaries grew by nearly 19% year-on-year, attributed to the start of operations of the newly created Oi Services.
Strong Performance in ICT Solutions
ICT revenues accounted for approximately 39% of Oi Soluções' total revenue in Q1 2025, with Cloud services revenue increasing by 8% year-on-year, UC&C revenues growing by 30%, and IoT revenues by 12%.
Negative Updates
Decline in Consolidated Net Revenue
Consolidated net revenue fell 34.3% compared to the first quarter of 2024, largely due to the exit of the fiber and TV operations in February.
Reduction in Oi Soluções Revenue
Oi Soluções revenue, which accounts for approximately 60% of total revenues, fell by 21% year-on-year.
Cash Burn and Funding Challenges
The cash balance was BRL 1.5 billion at the end of the period with a cash burn of 18% in the quarter. The company is still working on funding alternatives to offset the cash burn.
Impact of Legacy Services Costs
Routine EBITDA continued to be impacted by high costs of legacy services, affecting profitability.
Company Guidance
During Oi SA's First Quarter 2025 Earnings Call, the company provided detailed guidance on its performance and strategic initiatives. Oi Soluções emerged as the primary revenue driver, contributing approximately 60% of total revenue, with a focus on high-value technology services such as cloud computing and AI. The company reported a total revenue of R$631 million, down 27% year-on-year, largely due to a decrease in non-core revenues. Oi's domestic subsidiaries showed a nearly 20% increase in revenue, bolstered by the inception of Oi Services. Despite a 34.3% decline in consolidated net revenue compared to the previous year, the company achieved a 19% reduction in operating expenses through strategic cost management. The legacy network demobilization is projected to save approximately R$2.5 billion by year-end. Additionally, Oi maintained a cash balance of R$1.5 billion, although cash burn remains a concern, prompting ongoing efforts to secure funding alternatives.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 2024 | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 3.18B | 9.72B | 10.49B | 9.28B | 20.14B |
| Gross Profit | -1.71B | -1.45B | 433.59M | -198.26M | 2.01B | 4.82B |
| EBITDA | 15.29B | 13.89B | 763.55M | -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 | -3.54B | -4.03B | 951.57M | -5.11B |
| Operating Cash Flow | -800.19M | -1.34B | -2.80B | -2.59B | 4.41B | 2.31B |
| Investing Cash Flow | 82.19M | 166.53M | 1.31B | 17.42B | -3.14B | -6.85B |
| Financing Cash Flow | 334.07M | 969.36M | 250.45M | -14.85B | 799.63M | 2.24B |
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 | $184.80B | 10.21 | 17.65% | 6.18% | 2.05% | 61.39% | |
73 Outperform | $262.52B | 22.57 | 19.99% | 1.51% | 6.27% | 31.78% | |
72 Outperform | $196.99B | 16.10 | 12.12% | 4.03% | 1.46% | 0.88% | |
68 Neutral | $5.81B | -13.21 | -28.48% | ― | 25.39% | -42.90% | |
57 Neutral | $4.33B | -164.23 | -0.54% | 45.92% | -3.65% | -134.04% | |
38 Underperform | $34.02M | <0.01 | -81.27% | ― | ― | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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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.