TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to TIMB. TIMB was compared to 21 industry peers in the Wireless Telecommunication Services industry. TIMB scores excellent on profitability, but there are some minor concerns on its financial health. TIMB is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TIMB very considerable 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.
TIMB had positive earnings in each of the past 5 years.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
TIMB's Return On Assets of 6.08% is amongst the best of the industry. TIMB outperforms 90.48% of its industry peers.
TIMB's Return On Equity of 14.03% is fine compared to the rest of the industry. TIMB outperforms 76.19% of its industry peers.
The Return On Invested Capital of TIMB (12.43%) 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 6.28%.
The 3 year average ROIC (9.42%) for TIMB is below the current ROIC(12.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.03% | ||
| ROIC | 12.43% |
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 13.33% is amongst the best of the industry. TIMB outperforms 90.48% of its industry peers.
In the last couple of years the Profit Margin of TIMB has declined.
TIMB has a Operating Margin of 22.86%. This is amongst the best in the industry. TIMB outperforms 80.95% of its industry peers.
TIMB's Operating Margin has declined in the last couple of years.
TIMB's Gross Margin of 42.28% is on the low side compared to the rest of the industry. TIMB is outperformed by 76.19% of its industry peers.
TIMB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.86% | ||
| PM (TTM) | 13.33% | ||
| GM | 42.28% |
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.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.98 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.98, TIMB belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Debt to FCF ratio of TIMB is 1.87, which is an excellent value as it means it would take TIMB, only 1.87 years of fcf income to pay off all of its debts.
TIMB has a better Debt to FCF ratio (1.87) than 90.48% of its industry peers.
TIMB has a Debt/Equity ratio of 0.57. This is a neutral value indicating TIMB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, TIMB is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.88
WACC14.13%
2.3 Liquidity
TIMB has a Current Ratio of 0.88. 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 of 0.88. This is in the lower half of the industry: TIMB underperforms 71.43% of its industry peers.
TIMB has a Quick Ratio of 0.88. 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 Quick ratio of 0.86 is on the low side compared to the rest of the industry. TIMB is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.39% 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.
The Revenue has been growing slightly by 6.00% in the past year.
TIMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.93% yearly.
EPS 1Y (TTM)16.39%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%57.14%
Revenue 1Y (TTM)6%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.89%
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 11.93% on average per year.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.93%
Revenue Next Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.89%
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.
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
Based on the Price/Earnings ratio of 14.52, the valuation of TIMB can be described as correct.
76.19% of the companies in the same industry are more expensive than TIMB, based on the Price/Earnings ratio.
TIMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 10.89 indicates a reasonable valuation of TIMB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 66.67% of the companies listed in the same industry.
TIMB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
90.48% of the companies in the same industry are more expensive than TIMB, based on the Enterprise Value to EBITDA ratio.
TIMB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.9 | ||
| EV/EBITDA | 4.54 |
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 19.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)1.39
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.70%, TIMB is a good candidate for dividend investing.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.22. TIMB pays more dividend than 95.24% of the companies in the same industry.
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 | 7.7% |
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.
TIMB has decreased its dividend recently.
Dividend Growth(5Y)23.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TIMB pays out 79.98% 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.
DP79.98%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
18.59
-0.32 (-1.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.82%
Inst Owner Change-7.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.99B
Analysts79
Price Target17.66 (-5%)
Short Float %1.2%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.7% |
Yearly Dividend1.01
Dividend Growth(5Y)23.74%
DP79.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.91%
Min EPS beat(2)-0.65%
Max EPS beat(2)10.48%
EPS beat(4)1
Avg EPS beat(4)1.07%
Min EPS beat(4)-3.93%
Max EPS beat(4)10.48%
EPS beat(8)4
Avg EPS beat(8)11.22%
EPS beat(12)6
Avg EPS beat(12)6.25%
EPS beat(16)10
Avg EPS beat(16)23.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.48%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-2.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)1
Avg Revenue beat(12)-1.82%
Revenue beat(16)2
Avg Revenue beat(16)-1.86%
PT rev (1m)4.01%
PT rev (3m)22.25%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 10.89 | ||
| P/S | 1.93 | ||
| P/FCF | 5.9 | ||
| P/OCF | 3.78 | ||
| P/B | 2.03 | ||
| P/tB | 5.16 | ||
| EV/EBITDA | 4.54 |
EPS(TTM)1.28
EY6.89%
EPS(NY)1.71
Fwd EY9.19%
FCF(TTM)3.15
FCFY16.94%
OCF(TTM)4.92
OCFY26.49%
SpS9.62
BVpS9.14
TBVpS3.6
PEG (NY)0.62
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.03% | ||
| ROCE | 14.11% | ||
| ROIC | 12.43% | ||
| ROICexc | 14.25% | ||
| ROICexgc | 24.03% | ||
| OM | 22.86% | ||
| PM (TTM) | 13.33% | ||
| GM | 42.28% | ||
| FCFM | 32.74% |
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 | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 67.71% | ||
| Cap/Sales | 18.45% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 102.16% | ||
| Profit Quality | 245.64% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.98 |
F-Score8
WACC14.13%
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)16.39%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%57.14%
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.93%
Revenue 1Y (TTM)6%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.89%
Revenue Next Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.89%
EBIT growth 1Y16.7%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.11%
EBIT Next 3Y39.92%
EBIT Next 5Y24.44%
FCF growth 1Y50.71%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y28.17%
OCF growth 3Y6.96%
OCF growth 5Y11.26%