TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
Overall TIMB gets a fundamental rating of 6 out of 10. We evaluated TIMB against 22 industry peers in the Wireless Telecommunication Services industry. TIMB scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TIMB. These ratings could make TIMB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TIMB had positive earnings in the past year.
In the past year TIMB had a positive cash flow from operations.
Each year in the past 5 years TIMB has been profitable.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
TIMB has a Return On Assets of 5.85%. This is amongst the best in the industry. TIMB outperforms 80.95% of its industry peers.
TIMB's Return On Equity of 12.27% is fine compared to the rest of the industry. TIMB outperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.17%, TIMB belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TIMB is in line with the industry average of 6.52%.
The last Return On Invested Capital (10.17%) for TIMB is above the 3 year average (7.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 12.27% | ||
| ROIC | 10.17% |
ROA(3y)4.68%
ROA(5y)5.63%
ROE(3y)9.75%
ROE(5y)10.94%
ROIC(3y)7.12%
ROIC(5y)8.02%
1.3 Margins
With an excellent Profit Margin value of 12.71%, TIMB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TIMB's Profit Margin has declined in the last couple of years.
TIMB has a Operating Margin of 22.01%. This is amongst the best in the industry. TIMB outperforms 80.95% of its industry peers.
TIMB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 41.62%, TIMB is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
TIMB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.01% | ||
| PM (TTM) | 12.71% | ||
| GM | 41.62% |
OM growth 3Y3.57%
OM growth 5Y3.2%
PM growth 3Y3.7%
PM growth 5Y-4.5%
GM growth 3Y-10.09%
GM growth 5Y-6.51%
2. Health
2.1 Basic Checks
TIMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TIMB remains at a similar level compared to 1 year ago.
The number of shares outstanding for TIMB remains at a similar level compared to 5 years ago.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.97 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TIMB (1.97) is better than 80.95% of its industry peers.
The Debt to FCF ratio of TIMB is 1.94, which is an excellent value as it means it would take TIMB, only 1.94 years of fcf income to pay off all of its debts.
TIMB has a better Debt to FCF ratio (1.94) than 90.48% of its industry peers.
TIMB has a Debt/Equity ratio of 0.52. This is a neutral value indicating TIMB is somewhat dependend on debt financing.
TIMB has a Debt to Equity ratio of 0.52. This is amongst the best in the industry. TIMB outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.74
WACC13.83%
2.3 Liquidity
TIMB has a Current Ratio of 0.97. This is a bad value and indicates that TIMB is not financially healthy enough and could expect problems in meeting its short term obligations.
TIMB has a Current ratio of 0.97. This is in the lower half of the industry: TIMB underperforms 61.90% of its industry peers.
TIMB has a Quick Ratio of 0.97. This is a bad value and indicates that TIMB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, TIMB is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.46% over the past year.
TIMB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.36% yearly.
Looking at the last year, TIMB shows a small growth in Revenue. The Revenue has grown by 7.31% in the last year.
Measured over the past years, TIMB shows a small growth in Revenue. The Revenue has been growing by 7.02% on average per year.
EPS 1Y (TTM)36.46%
EPS 3Y15.29%
EPS 5Y2.36%
EPS Q2Q%6.67%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Sales Q2Q%6.01%
3.2 Future
Based on estimates for the next years, TIMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.37% on average per year.
TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y13.77%
EPS Next 2Y17.19%
EPS Next 3Y17.04%
EPS Next 5Y11.37%
Revenue Next Year6.95%
Revenue Next 2Y5.96%
Revenue Next 3Y5.48%
Revenue Next 5Y4.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TIMB is valuated correctly with a Price/Earnings ratio of 12.97.
TIMB's Price/Earnings ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, TIMB is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.50, the valuation of TIMB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TIMB is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
TIMB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIMB is cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIMB is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.11 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TIMB may justify a higher PE ratio.
TIMB's earnings are expected to grow with 17.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)5.49
EPS Next 2Y17.19%
EPS Next 3Y17.04%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 6.23%, which is a nice return.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.05. TIMB pays more dividend than 80.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
5.2 History
On average, the dividend of TIMB grows each year by 29.88%, which is quite nice.
TIMB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TIMB decreased in the last 3 years.
Dividend Growth(5Y)29.88%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
75.75% of the earnings are spent on dividend by TIMB. This is not a sustainable payout ratio.
The dividend of TIMB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP75.75%
EPS Next 2Y17.19%
EPS Next 3Y17.04%
14.92
-0.08 (-0.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.46%
Inst Owner Change8.16%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.22B
Analysts82
Price Target14.44 (-3.22%)
Short Float %0.6%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
Yearly Dividend0.9
Dividend Growth(5Y)29.88%
DP75.75%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.77%
Min EPS beat(2)-3.93%
Max EPS beat(2)-1.6%
EPS beat(4)1
Avg EPS beat(4)-0.68%
Min EPS beat(4)-12.93%
Max EPS beat(4)15.73%
EPS beat(8)5
Avg EPS beat(8)12.92%
EPS beat(12)7
Avg EPS beat(12)12.65%
EPS beat(16)10
Avg EPS beat(16)21.86%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)2
Avg Revenue beat(12)-1.66%
Revenue beat(16)2
Avg Revenue beat(16)-1.8%
PT rev (1m)7.81%
PT rev (3m)-11.59%
EPS NQ rev (1m)4.82%
EPS NQ rev (3m)-13.94%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 10.5 | ||
| P/S | 1.64 | ||
| P/FCF | 5.11 | ||
| P/OCF | 3.25 | ||
| P/B | 1.58 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)1.15
EY7.71%
EPS(NY)1.42
Fwd EY9.52%
FCF(TTM)2.92
FCFY19.58%
OCF(TTM)4.59
OCFY30.75%
SpS9.09
BVpS9.41
TBVpS4.01
PEG (NY)0.94
PEG (5Y)5.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 12.27% | ||
| ROCE | 12.87% | ||
| ROIC | 10.17% | ||
| ROICexc | 11.31% | ||
| ROICexgc | 18.44% | ||
| OM | 22.01% | ||
| PM (TTM) | 12.71% | ||
| GM | 41.62% | ||
| FCFM | 32.12% |
ROA(3y)4.68%
ROA(5y)5.63%
ROE(3y)9.75%
ROE(5y)10.94%
ROIC(3y)7.12%
ROIC(5y)8.02%
ROICexc(3y)8.48%
ROICexc(5y)9.31%
ROICexgc(3y)14.19%
ROICexgc(5y)14.72%
ROCE(3y)9.02%
ROCE(5y)10.15%
ROICexcg growth 3Y11.59%
ROICexcg growth 5Y-1.36%
ROICexc growth 3Y5.64%
ROICexc growth 5Y0.26%
OM growth 3Y3.57%
OM growth 5Y3.2%
PM growth 3Y3.7%
PM growth 5Y-4.5%
GM growth 3Y-10.09%
GM growth 5Y-6.51%
F-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 65.23% | ||
| Cap/Sales | 18.33% | ||
| Interest Coverage | 3.45 | ||
| Cash Conversion | 100.69% | ||
| Profit Quality | 252.81% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.97 |
F-Score8
WACC13.83%
ROIC/WACC0.74
Cap/Depr(3y)75.14%
Cap/Depr(5y)74.19%
Cap/Sales(3y)23.38%
Cap/Sales(5y)22.97%
Profit Quality(3y)240.78%
Profit Quality(5y)213.86%
High Growth Momentum
Growth
EPS 1Y (TTM)36.46%
EPS 3Y15.29%
EPS 5Y2.36%
EPS Q2Q%6.67%
EPS Next Y13.77%
EPS Next 2Y17.19%
EPS Next 3Y17.04%
EPS Next 5Y11.37%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Sales Q2Q%6.01%
Revenue Next Year6.95%
Revenue Next 2Y5.96%
Revenue Next 3Y5.48%
Revenue Next 5Y4.23%
EBIT growth 1Y28.12%
EBIT growth 3Y15.31%
EBIT growth 5Y10.44%
EBIT Next Year179.46%
EBIT Next 3Y46.38%
EBIT Next 5Y27.03%
FCF growth 1Y127.84%
FCF growth 3Y18.29%
FCF growth 5Y28.07%
OCF growth 1Y39.88%
OCF growth 3Y12.71%
OCF growth 5Y15.17%