TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - US88706T1088 - ADR
21.15 USD
-0.32 (-1.49%)
21.15 USD
0 (0%)
TIMB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. TIMB scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TIMB. With these ratings, TIMB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year TIMB was profitable.
TIMB had a positive operating cash flow in the past year.
Each year in the past 5 years TIMB has been profitable.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
TIMB has a better Return On Assets (6.37%) than 95.24% of its industry peers.
The Return On Equity of TIMB (14.43%) is better than 76.19% of its industry peers.
The Return On Invested Capital of TIMB (12.64%) is better than 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIMB is above the industry average of 6.31%.
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 has a better Profit Margin (13.92%) than 85.71% of its industry peers.
TIMB's Profit Margin has declined in the last couple of years.
TIMB has a better Operating Margin (23.20%) than 80.95% of its industry peers.
In the last couple of years the Operating Margin of TIMB has declined.
Looking at the Gross Margin, with a value of 42.37%, TIMB is doing worse than 76.19% of the companies in the same industry.
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
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.
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 2.12. 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 (2.12) is better than 85.71% 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.
The Debt to FCF ratio of TIMB (1.84) is better than 90.48% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that TIMB is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.54, TIMB belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.87
WACC14.54%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TIMB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, TIMB is doing worse than 80.95% of the companies in the same industry.
TIMB has a Quick 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 worse Quick ratio (0.88) than 71.43% 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 nice 15.50% 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 5.32%.
TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.93% yearly.
EPS 1Y (TTM)15.5%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%21.21%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.71%
3.2 Future
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
Based on estimates for the next years, TIMB will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y24.06%
EPS Next 2Y21.12%
EPS Next 3Y20.13%
EPS Next 5Y11.42%
Revenue Next Year5.23%
Revenue Next 2Y5.25%
Revenue Next 3Y5.19%
Revenue Next 5Y3.96%
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
The Price/Earnings ratio is 15.33, which indicates a correct valuation of TIMB.
Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 71.43% of the companies listed in the same industry.
TIMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 11.98 indicates a reasonable 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIMB is valued cheaper than 80.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 4.93 |
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 20.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)1.46
EPS Next 2Y21.12%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.76%, TIMB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.76, TIMB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
5.2 History
On average, the dividend of TIMB grows each year by 23.74%, which is quite nice.
TIMB has paid a dividend for at least 10 years, which is 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.
TIMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.8%
EPS Next 2Y21.12%
EPS Next 3Y20.13%
21.15
-0.32 (-1.49%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.6%
Inst Owner Change-12.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.23B
Analysts76
Price Target20.93 (-1.04%)
Short Float %2.61%
Short Ratio8.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
Yearly Dividend1.03
Dividend Growth(5Y)23.74%
DP84.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)8.1%
PT rev (3m)23.27%
EPS NQ rev (1m)-98.99%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)-99%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 11.98 | ||
| P/S | 2.12 | ||
| P/FCF | 6.26 | ||
| P/OCF | 4.11 | ||
| P/B | 2.2 | ||
| P/tB | 5.27 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)1.38
EY6.52%
EPS(NY)1.76
Fwd EY8.34%
FCF(TTM)3.38
FCFY15.97%
OCF(TTM)5.15
OCFY24.34%
SpS9.96
BVpS9.61
TBVpS4.01
PEG (NY)0.64
PEG (5Y)1.46
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%
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 | 0.54 | ||
| 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 | 2.12 |
F-Score8
WACC14.54%
ROIC/WACC0.87
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)15.5%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%21.21%
EPS Next Y24.06%
EPS Next 2Y21.12%
EPS Next 3Y20.13%
EPS Next 5Y11.42%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.71%
Revenue Next Year5.23%
Revenue Next 2Y5.25%
Revenue Next 3Y5.19%
Revenue Next 5Y3.96%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.11%
EBIT Next 3Y39.92%
EBIT Next 5Y23.35%
FCF growth 1Y36.02%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y21.73%
OCF growth 3Y6.96%
OCF growth 5Y11.26%