TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
23.38 USD
+0.07 (+0.3%)
23.38 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. TIMB scores excellent on profitability, but there are some minor concerns on its financial health. TIMB has a correct valuation and a medium growth rate.
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.
- TIMB had a positive operating cash flow in each of the past 5 years.
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.
- 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.
- TIMB's Return On Invested Capital of 12.64% is amongst the best of the industry. TIMB outperforms 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 better Profit Margin (13.92%) than 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 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
- 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.
- The number of shares outstanding for TIMB remains at a similar level compared to 5 years ago.
- The debt/assets ratio for TIMB has been reduced compared to a year ago.
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.
- TIMB has a better Altman-Z score (2.17) 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 has a better Debt to FCF ratio (1.84) than 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.
- 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 | 2.17 |
ROIC/WACC0.89
WACC14.21%
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
- The Earnings Per Share has grown by an impressive 27.48% over the past year.
- TIMB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.47% yearly.
- The Revenue has been growing slightly by 6.77% in the past 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
- TIMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.28% yearly.
- 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.
- 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 14.61 indicates a correct valuation of TIMB.
- TIMB's Price/Earnings ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 77.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, TIMB is valued a bit cheaper.
- A Price/Forward Earnings ratio of 12.75 indicates a correct valuation of TIMB.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TIMB is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.75 |
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 | 6.68 | ||
| EV/EBITDA | 5.13 |
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.
- A more expensive valuation may be justified as TIMB's earnings are expected to grow with 19.76% in the coming years.
PEG (NY)0.47
PEG (5Y)1.4
EPS Next 2Y21.28%
EPS Next 3Y19.76%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.35%, TIMB is a good candidate for dividend investing.
- TIMB's Dividend Yield is rather good when compared to the industry average which is at 3.98. TIMB pays more dividend than 100.00% 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 | 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
- 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 2Y21.28%
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 14.61 and the Price/Book (PB) ratio is 2.35.
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%.