TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
20.27 USD
0 (0%)
20.28 USD
+0.01 (+0.05%)
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. TIMB is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make TIMB suitable 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.
TIMB had positive earnings in each of the past 5 years.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
TIMB's Return On Assets of 6.37% is fine compared to the rest of the industry. TIMB outperforms 77.27% of its industry peers.
TIMB has a Return On Equity of 14.43%. This is in the better half 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 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
Looking at the Profit Margin, with a value of 13.92%, TIMB belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
TIMB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 23.20%, TIMB belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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.
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.
TIMB has a better debt/assets ratio than last year.
2.2 Solvency
TIMB has an Altman-Z score of 2.07. 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.
With an excellent Altman-Z score value of 2.07, TIMB belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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.
TIMB's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. TIMB outperforms 59.09% of its industry peers.
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 | 2.07 |
ROIC/WACC0.87
WACC14.55%
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 54.55% 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.
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
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.
The Revenue has been growing slightly by 6.77% in the past year.
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
Based on estimates for the next years, TIMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.20% on average per year.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y30.88%
EPS Next 2Y21.43%
EPS Next 3Y19.58%
EPS Next 5Y12.2%
Revenue Next Year5.07%
Revenue Next 2Y5.09%
Revenue Next 3Y5.07%
Revenue Next 5Y4.48%
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.
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
Based on the Price/Earnings ratio of 13.25, the valuation of TIMB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a rather cheap valuation: TIMB is cheaper than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, TIMB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of TIMB can be described as reasonable.
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 23.46, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 11.57 |
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.
TIMB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.08 | ||
| EV/EBITDA | 4.74 |
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.
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 19.58% in the coming years.
PEG (NY)0.43
PEG (5Y)1.26
EPS Next 2Y21.43%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.48%, TIMB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.85, TIMB pays a bit more dividend than its industry peers.
TIMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
5.2 History
On average, the dividend of TIMB grows each year by 23.74%, which is quite nice.
TIMB has been paying a dividend for at least 10 years, so it has 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
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 2Y21.43%
EPS Next 3Y19.58%
20.27
0 (0%)
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 Cap9.72B
Revenue(TTM)25.45B
Net Income(TTM)3.63B
Analysts74
Price Target21.43 (5.72%)
Short Float %1.51%
Short Ratio6.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
Yearly Dividend1.03
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)-10.45%
PT rev (3m)0.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.45%
EPS NY rev (1m)4.03%
EPS NY rev (3m)6.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 11.57 | ||
| P/S | 2.06 | ||
| P/FCF | 6.08 | ||
| P/OCF | 3.99 | ||
| P/B | 2.14 | ||
| P/tB | 5.12 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)1.53
EY7.55%
EPS(NY)1.75
Fwd EY8.64%
FCF(TTM)3.34
FCFY16.46%
OCF(TTM)5.09
OCFY25.09%
SpS9.83
BVpS9.49
TBVpS3.96
PEG (NY)0.43
PEG (5Y)1.26
Graham Number18.07
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 | 2.07 |
F-Score8
WACC14.55%
ROIC/WACC0.87
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 Y30.88%
EPS Next 2Y21.43%
EPS Next 3Y19.58%
EPS Next 5Y12.2%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.55%
Revenue Next Year5.07%
Revenue Next 2Y5.09%
Revenue Next 3Y5.07%
Revenue Next 5Y4.48%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.66%
EBIT Next 3Y40.43%
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 13.25 and the Price/Book (PB) ratio is 2.14.
Can you provide the financial health for TIMB stock?
The financial health rating of TIM SA-ADR (TIMB) is 5 / 10.