TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
Overall TIMB gets a fundamental rating of 6 out of 10. We evaluated TIMB 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. TIMB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, TIMB could be worth investigating further 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.
TIMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIMB has a Return On Assets of 6.08%. This is amongst the best in the industry. TIMB outperforms 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 14.03%, TIMB is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
TIMB's Return On Invested Capital of 12.43% is amongst the best of the industry. TIMB outperforms 95.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 6.29%.
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
TIMB has a better Profit Margin (13.33%) than 90.48% of its industry peers.
TIMB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.86%, TIMB belongs to the top of the industry, outperforming 80.95% 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 42.28%. This is in the lower half of the industry: TIMB underperforms 76.19% of its industry peers.
TIMB's Gross Margin has declined in the last couple of years.
| 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.
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.
The debt/assets ratio for TIMB has been reduced compared to a year ago.
2.2 Solvency
TIMB has an Altman-Z score of 1.90. 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.
Looking at the Altman-Z score, with a value of 1.90, TIMB belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
TIMB has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.87, TIMB belongs to the top 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.
Looking at the Debt to Equity ratio, with a value of 0.57, TIMB is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.73
WACC17.01%
2.3 Liquidity
A Current Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Current ratio of 0.88. This is in the lower half of the industry: TIMB underperforms 71.43% of its industry peers.
A Quick Ratio of 0.86 indicates that TIMB may have some problems paying its short term obligations.
The Quick ratio of TIMB (0.86) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 119.88% 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.
The Revenue has been growing slightly by 6.00% in the past year.
The Revenue has been growing slightly by 7.93% on average over the past years.
EPS 1Y (TTM)119.88%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%658.36%
Revenue 1Y (TTM)6%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%1.74%
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 13.04% on average per year.
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 Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 7.16, the valuation of TIMB can be described as very cheap.
100.00% of the companies in the same industry are more expensive than TIMB, based on the Price/Earnings ratio.
TIMB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 10.17, the valuation of TIMB can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 66.67% of the companies listed in the same industry.
TIMB is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 10.17 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIMB indicates a rather cheap valuation: TIMB is cheaper than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 4.24 |
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 19.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)0.68
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 7.78%, which is a nice return.
Compared to an average industry Dividend Yield of 5.21, TIMB pays a better dividend. On top of this TIMB pays more dividend than 100.00% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
5.2 History
On average, the dividend of TIMB grows each year by 23.74%, which is quite nice.
TIMB has been paying a dividend for at least 10 years, so it has a reliable track record.
TIMB has decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TIMB pays out 79.98% 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.
DP79.98%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
16.97
-0.09 (-0.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.82%
Inst Owner Change-5.7%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.21B
Analysts81.05
Price Target16.98 (0.06%)
Short Float %1.09%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
Yearly Dividend0.99
Dividend Growth(5Y)23.74%
DP79.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)216.25%
Min EPS beat(2)-0.65%
Max EPS beat(2)433.16%
EPS beat(4)1
Avg EPS beat(4)106.74%
Min EPS beat(4)-3.93%
Max EPS beat(4)433.16%
EPS beat(8)4
Avg EPS beat(8)64.05%
EPS beat(12)6
Avg EPS beat(12)41.47%
EPS beat(16)10
Avg EPS beat(16)49.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-5.53%
Max Revenue beat(2)-2.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-5.53%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-2.36%
Revenue beat(12)1
Avg Revenue beat(12)-2.06%
Revenue beat(16)2
Avg Revenue beat(16)-2.04%
PT rev (1m)2.63%
PT rev (3m)17.54%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 10.17 | ||
| P/S | 1.81 | ||
| P/FCF | 5.52 | ||
| P/OCF | 3.53 | ||
| P/B | 1.9 | ||
| P/tB | 4.82 | ||
| EV/EBITDA | 4.24 |
EPS(TTM)2.37
EY13.97%
EPS(NY)1.67
Fwd EY9.83%
FCF(TTM)3.08
FCFY18.13%
OCF(TTM)4.81
OCFY28.35%
SpS9.4
BVpS8.93
TBVpS3.52
PEG (NY)0.31
PEG (5Y)0.68
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 | 1.9 |
F-Score8
WACC17.01%
ROIC/WACC0.73
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)119.88%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%658.36%
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y13.04%
Revenue 1Y (TTM)6%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%1.74%
Revenue Next Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.97%
EBIT growth 1Y16.7%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.13%
EBIT Next 3Y39.9%
EBIT Next 5Y24.95%
FCF growth 1Y50.71%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y28.17%
OCF growth 3Y6.96%
OCF growth 5Y11.26%