TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
20.75 USD
+0.32 (+1.57%)
20.75 USD
0 (0%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make TIMB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TIMB had positive earnings in the past year.
TIMB had a positive operating cash flow in the past year.
In the past 5 years TIMB has always been profitable.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.37%, TIMB is doing good in the industry, outperforming 77.27% of the companies in the same industry.
TIMB has a better Return On Equity (14.43%) than 68.18% of its industry peers.
TIMB's Return On Invested Capital of 12.64% is amongst the best of the industry. TIMB outperforms 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 6.34%.
The last Return On Invested Capital (12.64%) for TIMB is above the 3 year average (9.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 14.43% | ||
| ROIC | 12.64% |
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's Profit Margin of 13.92% is amongst the best of the industry. TIMB outperforms 86.36% of its industry peers.
TIMB's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 23.20%, TIMB belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
TIMB's Operating Margin has declined in the last couple of years.
The Gross Margin of TIMB (42.37%) is worse than 72.73% of its industry peers.
In the last couple of years the Gross Margin of TIMB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.2% | ||
| PM (TTM) | 13.92% | ||
| GM | 42.37% |
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
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.
The number of shares outstanding for TIMB remains at a similar level compared to 5 years ago.
The debt/assets ratio for TIMB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.05 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
TIMB's Altman-Z score of 2.05 is amongst the best of the industry. TIMB outperforms 81.82% of its industry peers.
TIMB has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
TIMB's Debt to FCF ratio of 1.84 is amongst the best of the industry. TIMB outperforms 95.45% of its industry peers.
TIMB has a Debt/Equity ratio of 0.54. This is a neutral value indicating TIMB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, TIMB perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
Although TIMB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.84
WACC15.13%
2.3 Liquidity
TIMB has a Current Ratio of 0.91. 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 has a Current ratio (0.91) which is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Quick ratio of 0.88. This is comparable to the rest of the industry: TIMB outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.48% 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.
TIMB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
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)27.48%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%56.25%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.55%
3.2 Future
TIMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.20% yearly.
Based on estimates for the next years, TIMB will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
EPS Next Y30.88%
EPS Next 2Y21.43%
EPS Next 3Y19.58%
EPS Next 5Y12.2%
Revenue Next Year5.07%
Revenue Next 2Y5.09%
Revenue Next 3Y5.07%
Revenue Next 5Y4.48%
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
TIMB is valuated correctly with a Price/Earnings ratio of 13.22.
Based on the Price/Earnings ratio, TIMB is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
TIMB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 11.54, the valuation of TIMB can be described as reasonable.
TIMB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TIMB to the average of the S&P500 Index (23.88), we can say TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 77.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TIMB is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 4.66 |
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.
A more expensive valuation may be justified as TIMB's earnings are expected to grow with 19.58% in the coming years.
PEG (NY)0.43
PEG (5Y)1.26
EPS Next 2Y21.43%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.25%, TIMB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.44, TIMB pays a better dividend. On top of this TIMB pays more dividend than 95.45% 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 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.25% |
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 84.80% 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.
DP84.8%
EPS Next 2Y21.43%
EPS Next 3Y19.58%
20.75
+0.32 (+1.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners16.17%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.95B
Revenue(TTM)25.45B
Net Income(TTM)3.63B
Analysts73
Price Target21.43 (3.28%)
Short Float %1.16%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.25% |
Yearly Dividend1.05
Dividend Growth(5Y)23.74%
DP84.8%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.44%
Min EPS beat(2)6.4%
Max EPS beat(2)10.48%
EPS beat(4)2
Avg EPS beat(4)3.07%
Min EPS beat(4)-3.93%
Max EPS beat(4)10.48%
EPS beat(8)4
Avg EPS beat(8)5.73%
EPS beat(12)7
Avg EPS beat(12)9.74%
EPS beat(16)10
Avg EPS beat(16)17.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-3.3%
Max Revenue beat(2)-2.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-2.21%
Revenue beat(12)0
Avg Revenue beat(12)-2.46%
Revenue beat(16)2
Avg Revenue beat(16)-2.02%
PT rev (1m)-10.45%
PT rev (3m)-2.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)1.35%
EPS NY rev (3m)5.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 11.54 | ||
| P/S | 2.06 | ||
| P/FCF | 6.06 | ||
| P/OCF | 3.98 | ||
| P/B | 2.13 | ||
| P/tB | 5.1 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)1.57
EY7.57%
EPS(NY)1.8
Fwd EY8.66%
FCF(TTM)3.42
FCFY16.5%
OCF(TTM)5.22
OCFY25.15%
SpS10.09
BVpS9.74
TBVpS4.07
PEG (NY)0.43
PEG (5Y)1.26
Graham Number18.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 14.43% | ||
| ROCE | 14.35% | ||
| ROIC | 12.64% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 24.2% | ||
| OM | 23.2% | ||
| PM (TTM) | 13.92% | ||
| GM | 42.37% | ||
| FCFM | 33.92% |
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%
ROICexgc growth 3Y13.81%
ROICexgc 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 | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 65.81% | ||
| Cap/Sales | 17.78% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 102.95% | ||
| Profit Quality | 243.64% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.05 |
F-Score8
WACC15.13%
ROIC/WACC0.84
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)27.48%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%56.25%
EPS Next Y30.88%
EPS Next 2Y21.43%
EPS Next 3Y19.58%
EPS Next 5Y12.2%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.55%
Revenue Next Year5.07%
Revenue Next 2Y5.09%
Revenue Next 3Y5.07%
Revenue Next 5Y4.48%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.66%
EBIT Next 3Y40.43%
EBIT Next 5Y23.82%
FCF growth 1Y36.02%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y21.73%
OCF growth 3Y6.96%
OCF growth 5Y11.26%
TIM SA-ADR / TIMB FAQ
Can you provide the ChartMill fundamental rating for TIM SA-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to TIMB.
What is the valuation status for TIMB stock?
ChartMill assigns a valuation rating of 7 / 10 to TIM SA-ADR (TIMB). This can be considered as Undervalued.
How profitable is TIM SA-ADR (TIMB) stock?
TIM SA-ADR (TIMB) has a profitability rating of 7 / 10.
What are the PE and PB ratios of TIM SA-ADR (TIMB) stock?
The Price/Earnings (PE) ratio for TIM SA-ADR (TIMB) is 13.22 and the Price/Book (PB) ratio is 2.13.
Can you provide the dividend sustainability for TIMB stock?
The dividend rating of TIM SA-ADR (TIMB) is 6 / 10 and the dividend payout ratio is 84.8%.