TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
TIMB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on TIMB. 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.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.08%, TIMB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
The Return On Equity of TIMB (14.03%) is better than 76.19% of its industry peers.
With an excellent Return On Invested Capital value of 12.43%, TIMB belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 6.34%.
The last Return On Invested Capital (12.43%) for TIMB is above the 3 year average (9.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.03% | ||
| ROIC | 12.43% |
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 13.33%, TIMB belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
TIMB's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.86%, TIMB belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Operating Margin of TIMB has declined.
TIMB has a worse Gross Margin (42.28%) than 76.19% of its industry peers.
In the last couple of years the Gross Margin of TIMB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.86% | ||
| PM (TTM) | 13.33% | ||
| GM | 42.28% |
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.
TIMB has about the same amout of shares outstanding than it did 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 1.97. 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 Altman-Z score of 1.97. This is amongst the best in the industry. TIMB outperforms 85.71% of its industry peers.
The Debt to FCF ratio of TIMB is 1.87, which is an excellent value as it means it would take TIMB, only 1.87 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.87, TIMB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that TIMB is somewhat dependend on debt financing.
The Debt to Equity ratio of TIMB (0.57) is better than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.88
WACC14.18%
2.3 Liquidity
TIMB has a Current Ratio of 0.88. 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 0.88, TIMB is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
TIMB has a Quick Ratio of 0.88. 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 0.86, TIMB is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
TIMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.39%, which is quite good.
Measured over the past years, TIMB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
Looking at the last year, TIMB shows a small growth in Revenue. The Revenue has grown by 6.00% in the last year.
Measured over the past years, TIMB shows a small growth in Revenue. The Revenue has been growing by 7.93% on average per year.
EPS 1Y (TTM)16.39%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%57.14%
Revenue 1Y (TTM)6%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.89%
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 11.28% on average per year.
TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.28% yearly.
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.28%
Revenue Next Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.28%
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.
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 14.72 indicates a correct valuation of TIMB.
TIMB's Price/Earnings ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 71.43% of the companies in the same industry.
TIMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 11.08 indicates a reasonable valuation of TIMB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 61.90% of the companies listed in the same industry.
TIMB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIMB is valued cheaper than 85.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.01 | ||
| EV/EBITDA | 4.52 |
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.
A more expensive valuation may be justified as TIMB's earnings are expected to grow with 19.12% in the coming years.
PEG (NY)0.63
PEG (5Y)1.41
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 6.77%, which is a nice return.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.11. 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 | 6.77% |
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 79.98% 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.
DP79.98%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
18.7
+0.09 (+0.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.6%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.04B
Analysts78
Price Target19.63 (4.97%)
Short Float %1.97%
Short Ratio6.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
Yearly Dividend1.01
Dividend Growth(5Y)23.74%
DP79.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.91%
Min EPS beat(2)-0.65%
Max EPS beat(2)10.48%
EPS beat(4)1
Avg EPS beat(4)1.07%
Min EPS beat(4)-3.93%
Max EPS beat(4)10.48%
EPS beat(8)4
Avg EPS beat(8)11.22%
EPS beat(12)6
Avg EPS beat(12)6.25%
EPS beat(16)10
Avg EPS beat(16)23.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.48%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-2.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)1
Avg Revenue beat(12)-1.82%
Revenue beat(16)2
Avg Revenue beat(16)-1.86%
PT rev (1m)11.16%
PT rev (3m)18.65%
EPS NQ rev (1m)3.6%
EPS NQ rev (3m)3.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.97 | ||
| P/FCF | 6.01 | ||
| P/OCF | 3.84 | ||
| P/B | 2.07 | ||
| P/tB | 5.25 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)1.27
EY6.79%
EPS(NY)1.69
Fwd EY9.03%
FCF(TTM)3.11
FCFY16.65%
OCF(TTM)4.87
OCFY26.03%
SpS9.51
BVpS9.03
TBVpS3.56
PEG (NY)0.63
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.03% | ||
| ROCE | 14.11% | ||
| ROIC | 12.43% | ||
| ROICexc | 14.25% | ||
| ROICexgc | 24.03% | ||
| OM | 22.86% | ||
| PM (TTM) | 13.33% | ||
| GM | 42.28% | ||
| FCFM | 32.74% |
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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 67.71% | ||
| Cap/Sales | 18.45% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 102.16% | ||
| Profit Quality | 245.64% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.97 |
F-Score8
WACC14.18%
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)16.39%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%57.14%
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.28%
Revenue 1Y (TTM)6%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.89%
Revenue Next Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.28%
EBIT growth 1Y16.7%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.11%
EBIT Next 3Y39.92%
EBIT Next 5Y23.72%
FCF growth 1Y50.71%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y28.17%
OCF growth 3Y6.96%
OCF growth 5Y11.26%