TIM SA-ADR (TIMB)
US88706T1088 - ADR
Taking everything into account, TIMB scores 6 out of 10 in our fundamental rating. TIMB was compared to 22 industry peers in the Wireless Telecommunication Services industry. While TIMB has a great profitability rating, there are some minor concerns on its financial health. TIMB may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
With an excellent Return On Assets value of 5.74%, TIMB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TIMB's Return On Equity of 12.17% is fine compared to the rest of the industry. TIMB outperforms 76.19% of its industry peers.
TIMB has a better Return On Invested Capital (9.99%) than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIMB is in line with the industry average of 6.46%.
The last Return On Invested Capital (9.99%) for TIMB is above the 3 year average (7.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 12.17% | ||
| ROIC | 9.99% |
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 (12.53%) is better than 90.48% of its industry peers.
In the last couple of years the Profit Margin of TIMB has declined.
TIMB has a better Operating Margin (21.62%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of TIMB has grown nicely.
With a Gross Margin value of 41.11%, 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 | 21.62% | ||
| PM (TTM) | 12.53% | ||
| GM | 41.11% |
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.
Compared to 5 years ago, TIMB has about the same amount of shares outstanding.
The debt/assets ratio for TIMB has been reduced compared to a year ago.
2.2 Solvency
TIMB has an Altman-Z score of 1.88. 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 (1.88) is better than 76.19% 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.
TIMB's Debt to FCF ratio of 1.94 is amongst the best of the industry. TIMB outperforms 85.71% of its industry peers.
TIMB has a Debt/Equity ratio of 0.52. This is a neutral value indicating TIMB is somewhat dependend on debt financing.
TIMB's Debt to Equity ratio of 0.52 is amongst the best of the industry. TIMB outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.72
WACC13.9%
2.3 Liquidity
A Current Ratio of 0.88 indicates that TIMB may have some problems paying 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.
A Quick Ratio of 0.85 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a worse Quick ratio (0.85) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 57.32% over the past year.
The Earnings Per Share has been growing slightly by 2.36% on average over the past years.
Looking at the last year, TIMB shows a small growth in Revenue. The Revenue has grown by 7.80% in the last year.
The Revenue has been growing slightly by 7.02% on average over the past years.
EPS 1Y (TTM)57.32%
EPS 3Y15.29%
EPS 5Y2.36%
EPS Q2Q%26.92%
Revenue 1Y (TTM)7.8%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Sales Q2Q%7.5%
3.2 Future
The Earnings Per Share is expected to grow by 13.17% on average over the next years. This is quite good.
TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.11% yearly.
EPS Next Y14.97%
EPS Next 2Y19.76%
EPS Next 3Y19.19%
EPS Next 5Y13.17%
Revenue Next Year6.88%
Revenue Next 2Y6.11%
Revenue Next 3Y5.63%
Revenue Next 5Y6.11%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.22, the valuation of TIMB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. TIMB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.34 indicates a reasonable valuation of TIMB.
66.67% of the companies in the same industry are more expensive than TIMB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
80.95% of the companies in the same industry are more expensive than TIMB, based on the Enterprise Value to EBITDA ratio.
85.71% 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 | 4.77 | ||
| EV/EBITDA | 4.08 |
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.
TIMB has a very decent profitability rating, which may justify a higher PE ratio.
TIMB's earnings are expected to grow with 19.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)5.18
EPS Next 2Y19.76%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.47%, TIMB is a good candidate for dividend investing.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.16. TIMB pays more dividend than 80.95% of the companies in the same industry.
TIMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
5.2 History
The dividend of TIMB is nicely growing with an annual growth rate of 29.88%!
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
63.75% of the earnings are spent on dividend by TIMB. This is not a sustainable payout ratio.
TIMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.75%
EPS Next 2Y19.76%
EPS Next 3Y19.19%
TIM SA-ADR
NYSE:TIMB (11/21/2024, 8:04:00 PM)
After market: 13.8 +0.11 (+0.8%)13.69
-0.4 (-2.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 9.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.82
PEG (5Y)5.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 12.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.62% | ||
| PM (TTM) | 12.53% | ||
| GM | 41.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)57.32%
EPS 3Y15.29%
EPS 5Y
EPS Q2Q%
EPS Next Y14.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.8%
Revenue growth 3Y11.34%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y