TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
20.62 USD
+0.07 (+0.34%)
20.62 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TIMB. TIMB was compared to 22 industry peers in the Wireless Telecommunication Services industry. TIMB has an excellent profitability rating, 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. With these ratings, TIMB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TIMB had positive earnings in the past year.
TIMB had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 6.37%, TIMB is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
TIMB's Return On Equity of 14.43% is fine compared to the rest of the industry. TIMB outperforms 68.18% of its industry peers.
TIMB's Return On Invested Capital of 12.64% is amongst the best of the industry. TIMB outperforms 90.91% of its industry peers.
TIMB had an Average Return On Invested Capital over the past 3 years of 9.42%. This is above the industry average of 6.45%.
The last Return On Invested Capital (12.64%) for TIMB is above the 3 year average (9.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 14.43% | ||
| ROIC | 12.64% |
ROA(3y)4.57%
ROA(5y)4.81%
ROE(3y)9.81%
ROE(5y)9.83%
ROIC(3y)9.42%
ROIC(5y)8.71%
1.3 Margins
TIMB's Profit Margin of 13.92% is amongst the best of the industry. TIMB outperforms 86.36% of its industry peers.
TIMB's Profit Margin has declined in the last couple of years.
The Operating Margin of TIMB (23.20%) is better than 81.82% of its industry peers.
In the last couple of years the Operating Margin of TIMB has declined.
TIMB's Gross Margin of 42.37% is on the low side compared to the rest of the industry. TIMB is outperformed by 72.73% of its industry peers.
TIMB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.2% | ||
| PM (TTM) | 13.92% | ||
| GM | 42.37% |
OM growth 3Y8.45%
OM growth 5Y-3.12%
PM growth 3Y-8.87%
PM growth 5Y-11.02%
GM growth 3Y1.92%
GM growth 5Y-5.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIMB is destroying value.
TIMB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TIMB has about the same amount of shares outstanding.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
TIMB has an Altman-Z score of 2.09. This is not the best score and indicates that TIMB is in the grey zone with still only limited risk for bankruptcy at the moment.
TIMB has a better Altman-Z score (2.09) than 81.82% of its industry peers.
TIMB has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.84, TIMB belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that TIMB is somewhat dependend on debt financing.
The Debt to Equity ratio of TIMB (0.54) is comparable to the rest of the industry.
Although TIMB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.89
WACC14.27%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Current ratio (0.91) which is in line with its industry peers.
A Quick Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
The Quick ratio of TIMB (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
TIMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.48%, which is quite impressive.
The Earnings Per Share has been growing by 10.47% on average over the past years. This is quite good.
TIMB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
The Revenue has been growing slightly by 7.93% on average over the past years.
EPS 1Y (TTM)27.48%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%56.25%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.55%
3.2 Future
The Earnings Per Share is expected to grow by 12.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y29.14%
EPS Next 2Y21.16%
EPS Next 3Y19.66%
EPS Next 5Y12.2%
Revenue Next Year5.09%
Revenue Next 2Y5.1%
Revenue Next 3Y5.07%
Revenue Next 5Y4.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 13.57 indicates a correct valuation of TIMB.
Based on the Price/Earnings ratio, TIMB is valued cheaper than 81.82% of the companies in the same industry.
TIMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
The Price/Forward Earnings ratio is 11.88, which indicates a very decent valuation of TIMB.
The rest of the industry has a similar Price/Forward Earnings ratio as TIMB.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 77.27% of the companies listed in the same industry.
72.73% of the companies in the same industry are more expensive than TIMB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 4.81 |
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.
TIMB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TIMB's earnings are expected to grow with 19.66% in the coming years.
PEG (NY)0.47
PEG (5Y)1.3
EPS Next 2Y21.16%
EPS Next 3Y19.66%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 7.18%, which is a nice return.
TIMB's Dividend Yield is a higher than the industry average which is at 5.55.
Compared to an average S&P500 Dividend Yield of 1.87, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.18% |
5.2 History
The dividend of TIMB is nicely growing with an annual growth rate of 23.74%!
TIMB has paid a dividend for at least 10 years, which is a reliable track record.
TIMB has decreased its dividend recently.
Dividend Growth(5Y)23.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
84.80% 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.
DP84.8%
EPS Next 2Y21.16%
EPS Next 3Y19.66%
20.62
+0.07 (+0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.5%
Inst Owner Change2.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.89B
Revenue(TTM)25.45B
Net Income(TTM)3.63B
Analysts74
Price Target23.04 (11.74%)
Short Float %1.51%
Short Ratio6.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.18% |
Yearly Dividend1.05
Dividend Growth(5Y)23.74%
DP84.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.44%
Min EPS beat(2)6.4%
Max EPS beat(2)10.48%
EPS beat(4)2
Avg EPS beat(4)3.07%
Min EPS beat(4)-3.93%
Max EPS beat(4)10.48%
EPS beat(8)4
Avg EPS beat(8)5.73%
EPS beat(12)7
Avg EPS beat(12)9.74%
EPS beat(16)10
Avg EPS beat(16)17.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-3.3%
Max Revenue beat(2)-2.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-2.21%
Revenue beat(12)0
Avg Revenue beat(12)-2.46%
Revenue beat(16)2
Avg Revenue beat(16)-2.02%
PT rev (1m)-0.8%
PT rev (3m)7.61%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)11.45%
EPS NY rev (1m)2.93%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 11.88 | ||
| P/S | 2.11 | ||
| P/FCF | 6.21 | ||
| P/OCF | 4.07 | ||
| P/B | 2.18 | ||
| P/tB | 5.23 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)1.52
EY7.37%
EPS(NY)1.74
Fwd EY8.42%
FCF(TTM)3.32
FCFY16.1%
OCF(TTM)5.06
OCFY24.54%
SpS9.79
BVpS9.44
TBVpS3.94
PEG (NY)0.47
PEG (5Y)1.3
Graham Number17.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 14.43% | ||
| ROCE | 14.35% | ||
| ROIC | 12.64% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 24.2% | ||
| OM | 23.2% | ||
| PM (TTM) | 13.92% | ||
| GM | 42.37% | ||
| FCFM | 33.92% |
ROA(3y)4.57%
ROA(5y)4.81%
ROE(3y)9.81%
ROE(5y)9.83%
ROIC(3y)9.42%
ROIC(5y)8.71%
ROICexc(3y)10.73%
ROICexc(5y)10.24%
ROICexgc(3y)18.18%
ROICexgc(5y)16.65%
ROCE(3y)10.7%
ROCE(5y)9.89%
ROICexgc growth 3Y13.81%
ROICexgc growth 5Y1.09%
ROICexc growth 3Y11.82%
ROICexc growth 5Y-1.05%
OM growth 3Y8.45%
OM growth 5Y-3.12%
PM growth 3Y-8.87%
PM growth 5Y-11.02%
GM growth 3Y1.92%
GM growth 5Y-5.95%
F-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 65.81% | ||
| Cap/Sales | 17.78% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 102.95% | ||
| Profit Quality | 243.64% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.09 |
F-Score8
WACC14.27%
ROIC/WACC0.89
Cap/Depr(3y)66.4%
Cap/Depr(5y)72.49%
Cap/Sales(3y)19.76%
Cap/Sales(5y)22.21%
Profit Quality(3y)267.59%
Profit Quality(5y)244.86%
High Growth Momentum
Growth
EPS 1Y (TTM)27.48%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%56.25%
EPS Next Y29.14%
EPS Next 2Y21.16%
EPS Next 3Y19.66%
EPS Next 5Y12.2%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.55%
Revenue Next Year5.09%
Revenue Next 2Y5.1%
Revenue Next 3Y5.07%
Revenue Next 5Y4.48%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.41%
EBIT Next 3Y40.37%
EBIT Next 5Y23.82%
FCF growth 1Y36.02%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y21.73%
OCF growth 3Y6.96%
OCF growth 5Y11.26%
TIM SA-ADR / TIMB FAQ
Can you provide the ChartMill fundamental rating for TIM SA-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to TIMB.
Can you provide the valuation status for TIM SA-ADR?
ChartMill assigns a valuation rating of 7 / 10 to TIM SA-ADR (TIMB). This can be considered as Undervalued.
Can you provide the profitability details for TIM SA-ADR?
TIM SA-ADR (TIMB) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for TIMB stock?
The Price/Earnings (PE) ratio for TIM SA-ADR (TIMB) is 13.57 and the Price/Book (PB) ratio is 2.18.
Can you provide the financial health for TIMB stock?
The financial health rating of TIM SA-ADR (TIMB) is 5 / 10.