TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
22.38 USD
+0.19 (+0.86%)
22.38 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TIMB. TIMB was compared to 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past year TIMB had a positive cash flow from operations.
TIMB had positive earnings in each of the past 5 years.
In the past 5 years TIMB always reported a positive cash flow from operatings.
1.2 Ratios
TIMB has a Return On Assets of 6.37%. This is amongst the best in the industry. TIMB outperforms 81.82% of its industry peers.
TIMB has a Return On Equity of 14.43%. This is in the better half of the industry: TIMB outperforms 77.27% of its industry peers.
TIMB has a Return On Invested Capital of 12.64%. This is amongst the best in the industry. TIMB outperforms 95.45% of its industry peers.
TIMB had an Average Return On Invested Capital over the past 3 years of 9.42%. This is above the industry average of 5.85%.
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
With an excellent Profit Margin value of 13.92%, TIMB belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Profit Margin of TIMB has declined.
Looking at the Operating Margin, with a value of 23.20%, TIMB belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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 72.73% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIMB is destroying value.
Compared to 1 year ago, TIMB has about the same amount of shares outstanding.
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
TIMB has an Altman-Z score of 2.13. 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 (2.13) is better than 86.36% of its industry peers.
The Debt to FCF ratio of TIMB is 1.84, which is an excellent value as it means it would take TIMB, only 1.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.84, TIMB belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
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.
Even though the debt/equity ratio score it not favorable for TIMB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.89
WACC14.28%
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's Current ratio of 0.91 is in line compared to the rest of the industry. TIMB outperforms 50.00% of its industry peers.
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.
With a Quick ratio value of 0.88, TIMB perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
TIMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.48%, which is quite impressive.
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%.
TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.93% yearly.
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 Y25.81%
EPS Next 2Y21.03%
EPS Next 3Y19.24%
EPS Next 5Y12.2%
Revenue Next Year5.12%
Revenue Next 2Y5.19%
Revenue Next 3Y5.12%
Revenue Next 5Y4.48%
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
With a Price/Earnings ratio of 14.08, TIMB is valued correctly.
81.82% of the companies in the same industry are more expensive than TIMB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.41. TIMB is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of TIMB.
Based on the Price/Forward Earnings ratio, TIMB is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, TIMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.36 |
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 86.36% 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 | 6.45 | ||
| EV/EBITDA | 4.99 |
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 19.24% in the coming years.
PEG (NY)0.55
PEG (5Y)1.34
EPS Next 2Y21.03%
EPS Next 3Y19.24%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 6.68%, which is a nice return.
Compared to an average industry Dividend Yield of 8.54, TIMB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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
84.80% 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.
DP84.8%
EPS Next 2Y21.03%
EPS Next 3Y19.24%
22.38
+0.19 (+0.86%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.84%
Inst Owner Change2.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.73B
Revenue(TTM)25.45B
Net Income(TTM)3.63B
Analysts77
Price Target23.93 (6.93%)
Short Float %1.55%
Short Ratio7.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend1.06
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)8.45%
PT rev (3m)14.32%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)13.36%
EPS NY rev (1m)1.38%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.36 | ||
| P/S | 2.19 | ||
| P/FCF | 6.45 | ||
| P/OCF | 4.23 | ||
| P/B | 2.27 | ||
| P/tB | 5.43 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)1.59
EY7.1%
EPS(NY)1.81
Fwd EY8.09%
FCF(TTM)3.47
FCFY15.51%
OCF(TTM)5.29
OCFY23.65%
SpS10.23
BVpS9.87
TBVpS4.12
PEG (NY)0.55
PEG (5Y)1.34
Graham Number18.79
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 | 2.13 |
F-Score8
WACC14.28%
ROIC/WACC0.89
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 Y25.81%
EPS Next 2Y21.03%
EPS Next 3Y19.24%
EPS Next 5Y12.2%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.55%
Revenue Next Year5.12%
Revenue Next 2Y5.19%
Revenue Next 3Y5.12%
Revenue Next 5Y4.48%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.41%
EBIT Next 3Y40.15%
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.
Can you provide the valuation status for TIM SA-ADR?
ChartMill assigns a valuation rating of 7 / 10 to TIM SA-ADR (TIMB). This can be considered as Undervalued.
Can you provide the profitability details for TIM SA-ADR?
TIM SA-ADR (TIMB) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for TIMB stock?
The Price/Earnings (PE) ratio for TIM SA-ADR (TIMB) is 14.08 and the Price/Book (PB) ratio is 2.27.
Can you provide the financial health for TIMB stock?
The financial health rating of TIM SA-ADR (TIMB) is 5 / 10.