TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TIMB - US88706T1088 - ADR
20.96 USD
+0.21 (+1.01%)
20.96 USD
0 (0%)
Overall TIMB gets a fundamental rating of 6 out of 10. We evaluated TIMB 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. This makes TIMB very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TIMB was profitable.
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 Return On Assets of 6.37%. This is in the better half of the industry: TIMB outperforms 77.27% of its industry peers.
TIMB's Return On Equity of 14.43% is fine compared to the rest of the industry. TIMB outperforms 68.18% of its industry peers.
The Return On Invested Capital of TIMB (12.64%) is better than 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 6.24%.
The 3 year average ROIC (9.42%) for TIMB is below the current ROIC(12.64%), indicating increased profibility in the last year.
| 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 86.36% of its industry peers.
In the last couple of years the Profit Margin of TIMB has declined.
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.
In the last couple of years the Operating Margin of TIMB has declined.
The Gross Margin of TIMB (42.37%) is worse than 72.73% of its industry peers.
TIMB's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for TIMB remains at a similar level compared to 1 year ago.
TIMB has about the same amout of shares outstanding than it did 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 2.08 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TIMB (2.08) is better than 81.82% 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.
TIMB has a Debt to FCF ratio of 1.84. This is amongst the best in the industry. TIMB outperforms 95.45% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that TIMB is somewhat dependend on debt financing.
TIMB's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. TIMB outperforms 59.09% of its industry peers.
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 | 2.08 |
ROIC/WACC0.88
WACC14.29%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Current ratio (0.91) which is in line with its industry peers.
A Quick Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, TIMB is in line with its industry, outperforming 50.00% 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.
The Earnings Per Share has been growing by 10.47% on average over the past years. This is quite good.
Looking at the last year, TIMB shows a small growth in Revenue. The Revenue has grown by 6.77% in the last year.
The Revenue has been growing slightly by 7.93% on average over the past years.
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 12.28% yearly.
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y30.88%
EPS Next 2Y21.43%
EPS Next 3Y19.58%
EPS Next 5Y12.28%
Revenue Next Year5.07%
Revenue Next 2Y5.09%
Revenue Next 3Y5.07%
Revenue Next 5Y4.55%
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.
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 13.35, which indicates a correct valuation of TIMB.
Based on the Price/Earnings ratio, TIMB is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
TIMB is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.65, the valuation of TIMB can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIMB is on the same level as its industry peers.
TIMB is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
TIMB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 77.27% of the companies in the same industry.
77.27% 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 | 6.12 | ||
| EV/EBITDA | 4.76 |
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 19.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)1.27
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.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.49. TIMB pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, TIMB pays a better dividend.
| 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
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 2Y21.43%
EPS Next 3Y19.58%
20.96
+0.21 (+1.01%)
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 Cap10.05B
Revenue(TTM)25.45B
Net Income(TTM)3.63B
Analysts73
Price Target21.43 (2.24%)
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)-7.02%
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 | 13.35 | ||
| Fwd PE | 11.65 | ||
| P/S | 2.08 | ||
| P/FCF | 6.12 | ||
| P/OCF | 4.01 | ||
| P/B | 2.15 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)1.57
EY7.49%
EPS(NY)1.8
Fwd EY8.58%
FCF(TTM)3.43
FCFY16.34%
OCF(TTM)5.22
OCFY24.91%
SpS10.1
BVpS9.74
TBVpS4.07
PEG (NY)0.43
PEG (5Y)1.27
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 | 2.08 |
F-Score8
WACC14.29%
ROIC/WACC0.88
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 5Y12.28%
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 5Y4.55%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.66%
EBIT Next 3Y40.43%
EBIT Next 5Y23.91%
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 13.35 and the Price/Book (PB) ratio is 2.15.
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%.