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 scores excellent on profitability, 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!
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.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
TIMB has a Return On Assets of 6.08%. This is amongst the best in the industry. TIMB outperforms 90.48% of its industry peers.
With an excellent Return On Equity value of 14.03%, TIMB belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.43%, TIMB belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TIMB is above the industry average of 6.33%.
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 Profit Margin of 13.33%. This is amongst the best in the industry. TIMB outperforms 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 is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of TIMB has declined.
With a Gross Margin value of 42.28%, 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 | 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) just above the Cost of Capital (WACC), TIMB is creating some value.
Compared to 1 year ago, TIMB has about the same amount of shares outstanding.
TIMB has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
TIMB has an Altman-Z score of 1.04. This is a bad value and indicates that TIMB is not financially healthy and even has some risk of bankruptcy.
TIMB has a Altman-Z score (1.04) which is comparable to the rest of the 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.
TIMB's Debt to FCF ratio of 1.87 is amongst the best of the industry. TIMB outperforms 90.48% of its industry peers.
TIMB has a Debt/Equity ratio of 0.57. This is a neutral value indicating TIMB is somewhat dependend on debt financing.
TIMB's Debt to Equity ratio of 0.57 is fine compared to the rest of the industry. TIMB outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.38
WACC9.03%
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.
TIMB's Current ratio of 0.88 is on the low side compared to the rest of the industry. TIMB is outperformed by 71.43% of its industry peers.
A Quick Ratio of 0.86 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Quick ratio of 0.86. This is in the lower half of the industry: TIMB underperforms 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 135.81% over the past year.
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.
The Revenue has been growing slightly by 6.77% in the past 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)135.81%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%491.5%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.71%
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.
The Revenue is expected to grow by 4.28% on average over the next years.
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.28%
Revenue Next Year5.28%
Revenue Next 2Y5.19%
Revenue Next 3Y5.09%
Revenue Next 5Y4.28%
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 stable.
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 0.07, the valuation of TIMB can be described as very cheap.
Based on the Price/Earnings ratio, TIMB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TIMB to the average of the S&P500 Index (27.24), we can say TIMB is valued rather cheaply.
TIMB is valuated cheaply with a Price/Forward Earnings ratio of 0.11.
100.00% 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 (36.42), we can say TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.07 | ||
| Fwd PE | 0.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIMB is valued cheaper than 100.00% of the companies in the same industry.
100.00% 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 | 0.06 | ||
| EV/EBITDA | 0.66 |
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.
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
PEG (5Y)0.01
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 732.74%, which is a nice return.
Compared to an average industry Dividend Yield of 57.40, TIMB pays a better dividend. On top of this TIMB pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 732.74% |
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 recently.
Dividend Growth(5Y)23.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
79.98% 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.
DP79.98%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
19.24
+0.44 (+2.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.6%
Inst Owner Change2.29%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap93.03M
Analysts76
Price Target19.36 (0.62%)
Short Float %213.17%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 732.74% |
Yearly Dividend100.04
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)-1.36%
PT rev (3m)17.28%
EPS NQ rev (1m)9421.82%
EPS NQ rev (3m)9777.08%
EPS NY rev (1m)9900%
EPS NY rev (3m)9912.39%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.07 | ||
| Fwd PE | 0.11 | ||
| P/S | 0.02 | ||
| P/FCF | 0.06 | ||
| P/OCF | 0.04 | ||
| P/B | 0.02 | ||
| P/tB | 0.05 | ||
| EV/EBITDA | 0.66 |
EPS(TTM)270.83
EY1407.64%
EPS(NY)168.13
Fwd EY873.88%
FCF(TTM)310.05
FCFY1611.46%
OCF(TTM)484.78
OCFY2519.65%
SpS946.85
BVpS899.39
TBVpS354.4
PEG (NY)0
PEG (5Y)0.01
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 | 1.04 |
F-Score8
WACC9.03%
ROIC/WACC1.38
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)135.81%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%491.5%
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.28%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.71%
Revenue Next Year5.28%
Revenue Next 2Y5.19%
Revenue Next 3Y5.09%
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%