TIM SA-ADR (TIMB)
US88706T1088 - ADR
TIMB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. TIMB has an excellent profitability rating, but 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 better Return On Assets (5.13%) than 76.19% of its industry peers.
TIMB has a Return On Equity of 10.91%. This is in the better half of the industry: TIMB outperforms 71.43% of its industry peers.
The Return On Invested Capital of TIMB (8.80%) is better than 80.95% 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 7.50%.
The last Return On Invested Capital (8.80%) for TIMB is above the 3 year average (7.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 10.91% | ||
| ROIC | 8.8% |
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 (11.90%) is better than 80.95% 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 19.80%, TIMB is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
TIMB's Operating Margin has improved in the last couple of years.
The Gross Margin of TIMB (39.03%) is worse 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 | 19.8% | ||
| PM (TTM) | 11.9% | ||
| GM | 39.03% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TIMB is destroying value.
Compared to 1 year ago, TIMB has about the same amount of shares outstanding.
Compared to 5 years ago, TIMB has about the same amount of shares outstanding.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
TIMB's Altman-Z score of 1.86 is fine compared to the rest of the industry. TIMB outperforms 76.19% of its industry peers.
The Debt to FCF ratio of TIMB is 2.02, which is a good value as it means it would take TIMB, 2.02 years of fcf income to pay off all of its debts.
TIMB's Debt to FCF ratio of 2.02 is amongst the best of the industry. TIMB outperforms 85.71% of its industry peers.
TIMB has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TIMB (0.50) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.69
WACC12.79%
2.3 Liquidity
TIMB has a Current Ratio of 0.89. 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 0.89, TIMB is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
TIMB has a Quick Ratio of 0.89. 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 | 0.89 | ||
| 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 68.57%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.36% on average over the past years.
TIMB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.70%.
TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
EPS 1Y (TTM)68.57%
EPS 3Y15.29%
EPS 5Y2.36%
EPS growth Q2Q95.65%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y11.34%
Revenue growth 5Y7.02%
Revenue growth Q2Q7.74%
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 15.57% on average per year.
The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y21.92%
EPS Next 2Y22.53%
EPS Next 3Y19.94%
EPS Next 5Y15.57%
Revenue Next Year6.5%
Revenue Next 2Y5.68%
Revenue Next 3Y5.43%
Revenue Next 5Y4.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 14.89, which indicates a correct valuation of TIMB.
61.90% of the companies in the same industry are more expensive than TIMB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.55, TIMB is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.20, which indicates a correct valuation of TIMB.
TIMB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 61.90% of the companies in the same industry.
TIMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIMB is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIMB is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.37 | ||
| EV/EBITDA | 4.35 |
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 19.94% in the coming years.
PEG (NY)0.68
PEG (5Y)6.3
EPS Next 2Y22.53%
EPS Next 3Y19.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.76%, TIMB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.14, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.76% |
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 recently.
Dividend Growth(5Y)29.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
76.65% of the earnings are spent on dividend by TIMB. 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.
DP76.65%
EPS Next 2Y22.53%
EPS Next 3Y19.94%
TIM SA-ADR
NYSE:TIMB (5/1/2024, 7:25:50 PM)
Premarket: 17.34 +0.22 (+1.29%)17.12
+0.09 (+0.53%)
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 Cap8.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.2 | ||
| 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)0.68
PEG (5Y)6.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 10.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.8% | ||
| PM (TTM) | 11.9% | ||
| GM | 39.03% | ||
| 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| 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)
Growth
EPS 1Y (TTM)68.57%
EPS 3Y15.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.7%
Revenue growth 3Y11.34%
Revenue growth 5Y
Revenue growth 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