TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - NYSE:TIMB - US88706T1088 - ADR
23.43 USD
+0.39 (+1.69%)
23.43 USD
0 (0%)
Overall TIMB gets a fundamental rating of 6 out of 10. We evaluated TIMB 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 could make TIMB a good candidate 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.
In the past 5 years TIMB has always been profitable.
In the past 5 years TIMB always reported a positive cash flow from operatings.
1.2 Ratios
TIMB has a better Return On Assets (6.37%) than 81.82% of its industry peers.
With a decent Return On Equity value of 14.43%, TIMB is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Return On Invested Capital of TIMB (12.64%) is better than 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 5.83%.
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
With an excellent Profit Margin value of 13.92%, TIMB belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of TIMB has declined.
With an excellent Operating Margin value of 23.20%, TIMB belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
TIMB's Operating Margin has declined in the last couple of years.
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.
TIMB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TIMB has about the same amount of shares outstanding.
TIMB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.16 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.16, TIMB belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
TIMB has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.84, TIMB belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that TIMB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, TIMB belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.88
WACC14.36%
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.
With a Current ratio value of 0.91, TIMB is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Quick ratio of 0.88. This is in the lower half of the industry: TIMB underperforms 63.64% of its industry peers.
| 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 177.43%, which is quite impressive.
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.
The Revenue has been growing slightly by 7.93% on average over the past years.
EPS 1Y (TTM)177.43%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%670.1%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%2.81%
3.2 Future
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y25.81%
EPS Next 2Y21.03%
EPS Next 3Y19.24%
EPS Next 5Y11.29%
Revenue Next Year5.12%
Revenue Next 2Y5.19%
Revenue Next 3Y5.12%
Revenue Next 5Y3.7%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.77, the valuation of TIMB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a rather cheap valuation: TIMB is cheaper than 100.00% of the companies listed in the same industry.
TIMB is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
TIMB is valuated correctly with a Price/Forward Earnings ratio of 12.92.
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 34.59, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.77 | ||
| Fwd PE | 12.92 |
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 86.36% 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 | 6.74 | ||
| EV/EBITDA | 5.11 |
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.
The decent profitability rating of TIMB may justify a higher PE ratio.
TIMB's earnings are expected to grow with 19.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)0.65
EPS Next 2Y21.03%
EPS Next 3Y19.24%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 6.64%, which is a nice return.
Compared to an average industry Dividend Yield of 8.86, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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.
TIMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.8%
EPS Next 2Y21.03%
EPS Next 3Y19.24%
23.43
+0.39 (+1.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.84%
Inst Owner Change0.57%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.27B
Revenue(TTM)25.45B
Net Income(TTM)3.63B
Analysts77
Price Target23.23 (-0.85%)
Short Float %1.01%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Yearly Dividend1.07
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)5.29%
PT rev (3m)16.95%
EPS NQ rev (1m)10.85%
EPS NQ rev (3m)-98.87%
EPS NY rev (1m)1.4%
EPS NY rev (3m)-98.98%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.77 | ||
| Fwd PE | 12.92 | ||
| P/S | 2.29 | ||
| P/FCF | 6.74 | ||
| P/OCF | 4.42 | ||
| P/B | 2.37 | ||
| P/tB | 5.67 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)3.46
EY14.77%
EPS(NY)1.81
Fwd EY7.74%
FCF(TTM)3.48
FCFY14.84%
OCF(TTM)5.3
OCFY22.62%
SpS10.25
BVpS9.89
TBVpS4.13
PEG (NY)0.26
PEG (5Y)0.65
Graham Number27.74
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 | 2.16 |
F-Score8
WACC14.36%
ROIC/WACC0.88
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)177.43%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%670.1%
EPS Next Y25.81%
EPS Next 2Y21.03%
EPS Next 3Y19.24%
EPS Next 5Y11.29%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%2.81%
Revenue Next Year5.12%
Revenue Next 2Y5.19%
Revenue Next 3Y5.12%
Revenue Next 5Y3.7%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.41%
EBIT Next 3Y40.15%
EBIT Next 5Y22.84%
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 8 / 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 6.77 and the Price/Book (PB) ratio is 2.37.
Can you provide the financial health for TIMB stock?
The financial health rating of TIM SA-ADR (TIMB) is 5 / 10.