TIM SA-ADR (TIMB)
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. While TIMB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TIMB scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
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
TIMB has a better Return On Assets (5.85%) than 80.95% of its industry peers.
TIMB's Return On Equity of 12.27% is fine compared to the rest of the industry. TIMB outperforms 71.43% of its industry peers.
With an excellent Return On Invested Capital value of 10.17%, TIMB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TIMB had an Average Return On Invested Capital over the past 3 years of 7.12%. This is in line with the industry average of 6.47%.
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
The Profit Margin of TIMB (12.71%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of TIMB has declined.
The Operating Margin of TIMB (22.01%) is better than 85.71% of its industry peers.
TIMB's Operating Margin has improved in the last couple of years.
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.
TIMB's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for TIMB remains at a similar level compared to 1 year ago.
TIMB has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
TIMB has an Altman-Z score of 1.86. 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 (1.86) is better than 80.95% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.94, TIMB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
TIMB has a Debt/Equity ratio of 0.52. This is a neutral value indicating TIMB is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.52, TIMB belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.75
WACC13.57%
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 Current ratio of 0.97. This is in the lower half of the industry: TIMB underperforms 61.90% of its industry peers.
A Quick Ratio of 0.93 indicates that TIMB may have some problems paying its short term obligations.
TIMB's Quick ratio of 0.93 is on the low side compared to the rest of the industry. TIMB is outperformed by 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 36.39% over the past year.
TIMB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.36% yearly.
The Revenue has been growing slightly by 7.31% in the past year.
TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
EPS 1Y (TTM)36.39%
EPS 3Y15.29%
EPS 5Y2.36%
EPS Q2Q%6.62%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Sales Q2Q%6.01%
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 12.04% yearly.
TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y14.91%
EPS Next 2Y19.73%
EPS Next 3Y19.17%
EPS Next 5Y12.04%
Revenue Next Year6.88%
Revenue Next 2Y6.11%
Revenue Next 3Y5.63%
Revenue Next 5Y4.87%
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
With a Price/Earnings ratio of 11.32, the valuation of TIMB can be described as very reasonable.
Based on the Price/Earnings ratio, TIMB is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TIMB to the average of the S&P500 Index (27.73), we can say TIMB is valued rather cheaply.
The Price/Forward Earnings ratio is 8.79, which indicates a very decent valuation of TIMB.
Based on the Price/Forward Earnings ratio, TIMB is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIMB to the average of the S&P500 Index (22.83), we can say TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIMB is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TIMB is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.47 | ||
| EV/EBITDA | 3.6 |
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 19.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)4.79
EPS Next 2Y19.73%
EPS Next 3Y19.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.79%, TIMB is a good candidate for dividend investing.
In the last 3 months the price of TIMB has falen by -27.85%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.26. TIMB pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
5.2 History
On average, the dividend of TIMB grows each year by 29.88%, which is quite nice.
TIMB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TIMB decreased in the last 3 years.
Dividend Growth(5Y)29.88%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
75.75% 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.
DP75.75%
EPS Next 2Y19.73%
EPS Next 3Y19.17%
TIM SA-ADR
NYSE:TIMB (12/20/2024, 8:04:00 PM)
After market: 12.23 0 (0%)12.23
+0.19 (+1.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.46%
Inst Owner Change4.34%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.92B
Analysts84
Price Target14.17 (15.86%)
Short Float %0.15%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
Dividend Growth(5Y)29.88%
DP75.75%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-13.28%
PT rev (3m)-18.9%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-17.9%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 8.79 | ||
| P/S | 1.43 | ||
| P/FCF | 4.47 | ||
| P/OCF | 2.84 | ||
| P/B | 1.39 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)1.08
EY8.83%
EPS(NY)1.39
Fwd EY11.38%
FCF(TTM)2.74
FCFY22.39%
OCF(TTM)4.3
OCFY35.16%
SpS8.52
BVpS8.83
TBVpS3.76
PEG (NY)0.76
PEG (5Y)4.79
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 | 1.86 |
F-Score8
WACC13.57%
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)36.39%
EPS 3Y15.29%
EPS 5Y2.36%
EPS Q2Q%6.62%
EPS Next Y14.91%
EPS Next 2Y19.73%
EPS Next 3Y19.17%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Sales Q2Q%6.01%
Revenue Next Year6.88%
Revenue Next 2Y6.11%
Revenue Next 3Y5.63%
Revenue Next 5Y4.87%
EBIT growth 1Y28.12%
EBIT growth 3Y15.31%
EBIT growth 5Y10.44%
EBIT Next Year179.46%
EBIT Next 3Y46.38%
EBIT Next 5Y27.8%
FCF growth 1Y127.84%
FCF growth 3Y18.29%
FCF growth 5Y28.07%
OCF growth 1Y39.88%
OCF growth 3Y12.71%
OCF growth 5Y15.17%