TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
23.31 USD
+0.43 (+1.88%)
23.24 USD
-0.07 (-0.3%)
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. While TIMB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TIMB is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years TIMB has always been profitable.
- TIMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TIMB has a Return On Assets of 6.37%. This is in the better half of the industry: TIMB outperforms 77.27% of its industry peers.
- Looking at the Return On Equity, with a value of 14.43%, TIMB is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- The Return On Invested Capital of TIMB (12.64%) is better than 95.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 6.24%.
- The 3 year average ROIC (9.42%) for TIMB is below the current ROIC(12.64%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (13.92%) than 86.36% of its industry peers.
- In the last couple of years the Profit Margin of TIMB has declined.
- The Operating Margin of TIMB (23.20%) is better than 86.36% of its industry peers.
- TIMB's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 42.37%, TIMB is doing worse than 72.73% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TIMB is destroying value.
- The number of shares outstanding for TIMB remains at a similar level compared to 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 2.15. 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 Altman-Z score of 2.15. This is amongst the best in the industry. TIMB outperforms 81.82% of its industry peers.
- The Debt to FCF ratio of TIMB is 1.84, which is an excellent value as it means it would take TIMB, only 1.84 years of fcf income to pay off 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.
- Looking at the Debt to Equity ratio, with a value of 0.54, TIMB is in line with its industry, outperforming 59.09% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for TIMB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.82
WACC15.38%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that TIMB may have some problems paying its short term obligations.
- TIMB's Current ratio of 0.91 is in line compared to the rest of the industry. TIMB outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
- TIMB has a Quick ratio (0.88) which 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
- The Earnings Per Share has grown by an impressive 27.48% over the past year.
- The Earnings Per Share has been growing by 10.47% on average over the past years. This is quite good.
- Looking at the last year, TIMB shows a small growth in Revenue. The Revenue has grown by 6.77% in the last year.
- TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.93% yearly.
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
- Based on estimates for the next years, TIMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.28% on average per year.
- TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y31.42%
EPS Next 2Y21.28%
EPS Next 3Y19.76%
EPS Next 5Y12.28%
Revenue Next Year5.07%
Revenue Next 2Y5.09%
Revenue Next 3Y5.07%
Revenue Next 5Y4.55%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.66, the valuation of TIMB can be described as correct.
- 81.82% of the companies in the same industry are more expensive than TIMB, based on the Price/Earnings ratio.
- TIMB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.79, TIMB is valued correctly.
- 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 24.26, TIMB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 12.79 |
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.
- 77.27% 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 | 6.7 | ||
| EV/EBITDA | 5.07 |
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 19.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)1.4
EPS Next 2Y21.28%
EPS Next 3Y19.76%
5. Dividend
5.1 Amount
- TIMB has a Yearly Dividend Yield of 10.06%, which is a nice return.
- TIMB's Dividend Yield is rather good when compared to the industry average which is at 6.15. TIMB pays more dividend than 95.45% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.06% |
5.2 History
- On average, the dividend of TIMB grows each year by 23.74%, which is quite nice.
- TIMB has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of TIMB decreased 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.
- TIMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.8%
EPS Next 2Y21.28%
EPS Next 3Y19.76%
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.
What is the valuation status for TIMB stock?
ChartMill assigns a valuation rating of 6 / 10 to TIM SA-ADR (TIMB). This can be considered as Fairly Valued.
How profitable is TIM SA-ADR (TIMB) stock?
TIM SA-ADR (TIMB) has a profitability rating of 7 / 10.
What are the PE and PB ratios of TIM SA-ADR (TIMB) stock?
The Price/Earnings (PE) ratio for TIM SA-ADR (TIMB) is 14.66 and the Price/Book (PB) ratio is 2.36.
Can you provide the dividend sustainability for TIMB stock?
The dividend rating of TIM SA-ADR (TIMB) is 6 / 10 and the dividend payout ratio is 84.8%.