TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
23.83 USD
+0.45 (+1.92%)
23.83 USD
0 (0%)
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. 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
- In the past year TIMB was profitable.
- TIMB had a positive operating cash flow in the past year.
- In the past 5 years TIMB has always 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 (6.37%) is better than 77.27% of its industry peers.
- The Return On Equity of TIMB (14.43%) is better than 68.18% of its industry peers.
- The Return On Invested Capital of TIMB (12.64%) is better than 95.45% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TIMB is above the industry average of 6.55%.
- 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 has a Profit Margin of 13.92%. This is amongst the best in the industry. TIMB outperforms 86.36% of its industry peers.
- TIMB's Profit Margin has declined in the last couple of years.
- TIMB's Operating Margin of 23.20% is amongst the best of the industry. TIMB outperforms 86.36% of its industry peers.
- In the last couple of years the Operating Margin of TIMB has declined.
- TIMB has a worse Gross Margin (42.37%) than 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
- 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.
- Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
- TIMB has an Altman-Z score of 2.17. 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.
- The Altman-Z score of TIMB (2.17) is better than 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.
- TIMB's Debt to FCF ratio of 1.84 is amongst the best of the industry. TIMB outperforms 95.45% of its industry peers.
- TIMB has a Debt/Equity ratio of 0.54. This is a neutral value indicating 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 | 2.17 |
ROIC/WACC0.89
WACC14.23%
2.3 Liquidity
- TIMB has a Current Ratio of 0.91. 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 0.91. This is comparable to the rest of the industry: TIMB outperforms 50.00% of its industry peers.
- TIMB has a Quick Ratio of 0.91. 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 0.88, TIMB is in line with its industry, outperforming 50.00% of the companies in the same 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.
- Measured over the past years, TIMB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
- TIMB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
- Measured over the past years, TIMB shows a small growth in Revenue. The Revenue has been growing by 7.93% on average per year.
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 12.28% on average over the next years. This is quite good.
- Based on estimates for the next years, TIMB will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
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
- 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
- TIMB is valuated correctly with a Price/Earnings ratio of 14.89.
- Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 77.27% of the companies listed in the same industry.
- TIMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 13.00, the valuation of TIMB can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TIMB is on the same level as its industry peers.
- TIMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 13 |
4.2 Price Multiples
- TIMB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 77.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TIMB is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
- TIMB's 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)1.42
EPS Next 2Y21.28%
EPS Next 3Y19.76%
5. Dividend
5.1 Amount
- TIMB has a Yearly Dividend Yield of 9.35%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.98, TIMB pays a better dividend. On top of this TIMB pays more dividend than 100.00% of the companies listed in the same industry.
- TIMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.35% |
5.2 History
- The dividend of TIMB is nicely growing with an annual growth rate of 23.74%!
- TIMB has been paying a dividend for at least 10 years, so it has 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
- TIMB pays out 84.80% of its income as dividend. 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 2Y21.28%
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 14.89 and the Price/Book (PB) ratio is 2.4.
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%.