TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR
TIMB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. TIMB may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TIMB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TIMB was profitable.
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
The Return On Assets of TIMB (5.85%) is better than 80.95% of its industry peers.
The Return On Equity of TIMB (12.27%) is better than 71.43% of its industry peers.
TIMB has a Return On Invested Capital of 10.17%. This is amongst the best in the industry. TIMB outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIMB is in line with the industry average of 6.49%.
The 3 year average ROIC (7.12%) for TIMB is below the current ROIC(10.17%), indicating increased profibility in the last year.
| 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
TIMB's Profit Margin of 12.71% is amongst the best of the industry. TIMB outperforms 85.71% of its industry peers.
TIMB's Profit Margin has declined in the last couple of years.
TIMB has a better Operating Margin (22.01%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of TIMB has grown nicely.
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.
In the last couple of years the Gross Margin of TIMB has declined.
| 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.
Compared to 1 year ago, TIMB has about the same amount of shares outstanding.
Compared to 5 years ago, TIMB has about the same amount of shares outstanding.
The debt/assets ratio for TIMB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.87 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.87, TIMB belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
The Debt to Equity ratio of TIMB (0.52) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.75
WACC13.61%
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 worse Current ratio (0.97) than 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.
TIMB has a worse Quick ratio (0.93) than 61.90% of its industry peers.
| 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.
Measured over the past 5 years, TIMB shows a small growth in Earnings Per Share. The EPS has been growing by 2.36% on average per year.
TIMB shows a small growth in Revenue. In the last year, the Revenue has grown by 7.31%.
TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
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 12.42% on average per year.
Based on estimates for the next years, TIMB will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
EPS Next Y14.97%
EPS Next 2Y19.76%
EPS Next 3Y19.19%
EPS Next 5Y12.42%
Revenue Next Year6.9%
Revenue Next 2Y5.95%
Revenue Next 3Y5.41%
Revenue Next 5Y5.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
TIMB is valuated reasonably with a Price/Earnings ratio of 11.59.
Based on the Price/Earnings ratio, TIMB is valued a bit cheaper than 76.19% of the companies in the same industry.
TIMB is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.96 indicates a reasonable valuation of TIMB.
TIMB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIMB to the average of the S&P500 Index (24.44), we can say TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 8.96 |
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 | 4.55 | ||
| EV/EBITDA | 3.65 |
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.
TIMB's earnings are expected to grow with 19.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)4.91
EPS Next 2Y19.76%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.84%, TIMB is a good candidate for dividend investing.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.35. TIMB pays more dividend than 85.71% of the companies in the same industry.
TIMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
5.2 History
The dividend of TIMB is nicely growing with an annual growth rate of 29.88%!
TIMB has paid a dividend for at least 10 years, which is a reliable track record.
TIMB has decreased its dividend in the last 3 years.
Dividend Growth(5Y)29.88%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TIMB pays out 75.75% of its income as dividend. This is not a sustainable payout ratio.
TIMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP75.75%
EPS Next 2Y19.76%
EPS Next 3Y19.19%
TIM SA-ADR
NYSE:TIMB (1/21/2025, 8:04:00 PM)
After market: 12.52 0 (0%)12.52
+0.36 (+2.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.46%
Inst Owner Change-0.12%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.06B
Analysts82
Price Target13.4 (7.03%)
Short Float %1.35%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
Yearly Dividend0.9
Dividend Growth(5Y)29.88%
DP75.75%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-5.43%
PT rev (3m)-24.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.9%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 8.96 | ||
| P/S | 1.46 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.9 | ||
| P/B | 1.41 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 3.65 |
EPS(TTM)1.08
EY8.63%
EPS(NY)1.4
Fwd EY11.16%
FCF(TTM)2.75
FCFY21.97%
OCF(TTM)4.32
OCFY34.51%
SpS8.56
BVpS8.87
TBVpS3.77
PEG (NY)0.77
PEG (5Y)4.91
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 | 1.87 |
F-Score8
WACC13.61%
ROIC/WACC0.75
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 Y14.97%
EPS Next 2Y19.76%
EPS Next 3Y19.19%
EPS Next 5Y12.42%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Sales Q2Q%6.01%
Revenue Next Year6.9%
Revenue Next 2Y5.95%
Revenue Next 3Y5.41%
Revenue Next 5Y5.2%
EBIT growth 1Y28.12%
EBIT growth 3Y15.31%
EBIT growth 5Y10.44%
EBIT Next Year179.46%
EBIT Next 3Y46.38%
EBIT Next 5Y28.21%
FCF growth 1Y127.84%
FCF growth 3Y18.29%
FCF growth 5Y28.07%
OCF growth 1Y39.88%
OCF growth 3Y12.71%
OCF growth 5Y15.17%