TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
Overall TIMB gets a fundamental rating of 6 out of 10. We evaluated TIMB against 21 industry peers in the Wireless Telecommunication Services industry. While TIMB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TIMB has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years TIMB has been profitable.
TIMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIMB has a better Return On Assets (6.08%) than 90.48% of its industry peers.
TIMB has a better Return On Equity (14.03%) than 76.19% of its industry peers.
With an excellent Return On Invested Capital value of 12.43%, TIMB belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIMB is above the industry average of 6.34%.
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.
TIMB's Profit Margin has declined in the last couple of years.
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 has a worse Gross Margin (42.28%) than 76.19% of its industry peers.
In the last couple of years the Gross Margin of TIMB has declined.
| 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
TIMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, TIMB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.04 indicates that TIMB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.04, TIMB belongs to the best of the industry, outperforming 85.71% 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's Debt to FCF ratio of 1.87 is amongst the best of the industry. TIMB outperforms 90.48% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that TIMB is somewhat dependend on debt financing.
TIMB has a Debt to Equity ratio of 0.57. This is in the better half of the industry: TIMB outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.87
WACC14.26%
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.
With a Current ratio value of 0.88, TIMB is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Quick ratio of 0.86. This is in the lower half of the industry: TIMB underperforms 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.
Measured over the past years, TIMB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
The Revenue has been growing slightly by 6.00% in the past year.
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)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
TIMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.28% yearly.
TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.28% yearly.
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y11.28%
Revenue Next Year5.23%
Revenue Next 2Y5.03%
Revenue Next 3Y4.92%
Revenue Next 5Y4.28%
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
A Price/Earnings ratio of 15.77 indicates a correct valuation of TIMB.
Based on the Price/Earnings ratio, TIMB is valued a bit cheaper than 71.43% of the companies in the same industry.
TIMB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.87, which indicates a very decent valuation of TIMB.
The rest of the industry has a similar Price/Forward Earnings ratio as TIMB.
TIMB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
TIMB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 76.19% of the companies in the same industry.
TIMB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TIMB is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 4.82 |
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.
TIMB's earnings are expected to grow with 19.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)1.51
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 6.71%, which is a nice return.
Compared to an average industry Dividend Yield of 5.00, TIMB pays a better dividend. On top of this TIMB pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.71% |
5.2 History
On average, the dividend of TIMB grows each year by 23.74%, which is quite nice.
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
79.98% of the earnings are spent on dividend by TIMB. 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.
DP79.98%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
20.66
+0.49 (+2.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.6%
Inst Owner Change-7.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.99B
Analysts79
Price Target19.63 (-4.99%)
Short Float %1.85%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.71% |
Yearly Dividend1.03
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)15.61%
PT rev (3m)31.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 11.87 | ||
| P/S | 2.11 | ||
| P/FCF | 6.44 | ||
| P/OCF | 4.12 | ||
| P/B | 2.22 | ||
| P/tB | 5.63 | ||
| EV/EBITDA | 4.82 |
EPS(TTM)1.31
EY6.34%
EPS(NY)1.74
Fwd EY8.43%
FCF(TTM)3.21
FCFY15.54%
OCF(TTM)5.02
OCFY24.29%
SpS9.8
BVpS9.31
TBVpS3.67
PEG (NY)0.67
PEG (5Y)1.51
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 | 2.04 |
F-Score8
WACC14.26%
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)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 5Y11.28%
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 5Y4.28%
EBIT growth 1Y16.7%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.11%
EBIT Next 3Y39.92%
EBIT Next 5Y23.72%
FCF growth 1Y50.71%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y28.17%
OCF growth 3Y6.96%
OCF growth 5Y11.26%