TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to TIMB. TIMB was compared to 21 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! This makes TIMB very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TIMB was profitable.
In the past year TIMB had a positive cash flow from operations.
TIMB had positive earnings in each of the past 5 years.
In the past 5 years TIMB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TIMB (5.60%) is better than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 11.94%, TIMB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TIMB's Return On Invested Capital of 11.61% is amongst the best of the industry. TIMB outperforms 90.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 6.12%.
The last Return On Invested Capital (11.61%) for TIMB is above the 3 year average (9.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.94% | ||
| ROIC | 11.61% |
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 12.39%, TIMB belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of TIMB has declined.
Looking at the Operating Margin, with a value of 22.52%, TIMB belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
TIMB's Operating Margin has declined in the last couple of years.
TIMB has a Gross Margin of 42.11%. This is in the lower half of the industry: TIMB underperforms 76.19% of its industry peers.
In the last couple of years the Gross Margin of TIMB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 12.39% | ||
| GM | 42.11% |
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.
TIMB has a better debt/assets ratio than last year.
2.2 Solvency
TIMB has an Altman-Z score of 2.00. 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's Altman-Z score of 2.00 is amongst the best of the industry. TIMB outperforms 80.95% of its industry peers.
TIMB has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as TIMB would need 2.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.04, TIMB belongs to the top 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.
The Debt to Equity ratio of TIMB (0.52) is better than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 2 |
ROIC/WACC0.69
WACC16.72%
2.3 Liquidity
TIMB has a Current Ratio of 0.99. 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 0.99. This is in the lower half of the industry: TIMB underperforms 61.90% of its industry peers.
TIMB has a Quick Ratio of 0.99. 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's Quick ratio of 0.96 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 | 0.99 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.17% 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.
Looking at the last year, TIMB shows a small growth in Revenue. The Revenue has grown by 6.77% in the last 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)10.17%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%5.67%
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 13.04% yearly.
Based on estimates for the next years, TIMB will show a small growth in Revenue. The Revenue will grow by 4.97% on average per year.
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y13.04%
Revenue Next Year5.15%
Revenue Next 2Y5.03%
Revenue Next 3Y4.89%
Revenue Next 5Y4.97%
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 accelerating.
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 14.32 indicates a correct valuation of TIMB.
Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 71.43% of the companies listed in the same industry.
TIMB is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of TIMB can be described as reasonable.
66.67% of the companies in the same industry are more expensive than TIMB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TIMB to the average of the S&P500 Index (21.65), we can say TIMB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| 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 rather cheap valuation: TIMB is cheaper than 85.71% of the companies listed in the same industry.
76.19% 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 | 5.87 | ||
| EV/EBITDA | 4.11 |
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 19.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)1.37
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 7.92%, which is a nice return.
Compared to an average industry Dividend Yield of 5.54, TIMB pays a better dividend. On top of this TIMB pays more dividend than 90.48% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.92% |
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 in the last 3 years.
Dividend Growth(5Y)23.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
86.25% 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.
DP86.25%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
NYSE:TIMB (4/24/2025, 8:04:00 PM)
16.33
+0.41 (+2.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.82%
Inst Owner Change0.11%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.90B
Analysts81.05
Price Target16.54 (1.29%)
Short Float %1.32%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.92% |
Yearly Dividend0.96
Dividend Growth(5Y)23.74%
DP86.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.29%
Min EPS beat(2)-3.93%
Max EPS beat(2)-0.65%
EPS beat(4)0
Avg EPS beat(4)-4.78%
Min EPS beat(4)-12.93%
Max EPS beat(4)-0.65%
EPS beat(8)4
Avg EPS beat(8)12.55%
EPS beat(12)6
Avg EPS beat(12)7.92%
EPS beat(16)9
Avg EPS beat(16)18.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.53%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)10.59%
PT rev (3m)23.47%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-15.2%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 11.57 | ||
| P/S | 1.77 | ||
| P/FCF | 5.87 | ||
| P/OCF | 3.64 | ||
| P/B | 1.7 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)1.14
EY6.98%
EPS(NY)1.41
Fwd EY8.64%
FCF(TTM)2.78
FCFY17.03%
OCF(TTM)4.48
OCFY27.44%
SpS9.25
BVpS9.6
TBVpS4.2
PEG (NY)0.61
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.94% | ||
| ROCE | 13.18% | ||
| ROIC | 11.61% | ||
| ROICexc | 13.35% | ||
| ROICexgc | 22% | ||
| OM | 22.52% | ||
| PM (TTM) | 12.39% | ||
| GM | 42.11% | ||
| FCFM | 30.06% |
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%
ROICexcg growth 3Y13.81%
ROICexcg 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 66.63% | ||
| Cap/Sales | 18.4% | ||
| Interest Coverage | 3.57 | ||
| Cash Conversion | 96.66% | ||
| Profit Quality | 242.55% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2 |
F-Score8
WACC16.72%
ROIC/WACC0.69
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)10.17%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%-2.22%
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y13.04%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%5.67%
Revenue Next Year5.15%
Revenue Next 2Y5.03%
Revenue Next 3Y4.89%
Revenue Next 5Y4.97%
EBIT growth 1Y21.44%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.13%
EBIT Next 3Y39.9%
EBIT Next 5Y24.95%
FCF growth 1Y-3.37%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y-0.72%
OCF growth 3Y6.96%
OCF growth 5Y11.26%