TIM SA-ADR (TIMB) Stock Fundamental Analysis
USA - NYSE:TIMB - US88706T1088 - ADR
21.84 USD
+0.45 (+2.1%)
21.84 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TIMB was profitable.
TIMB had a positive operating cash flow in the past year.
In the past 5 years TIMB has always been profitable.
Each year in the past 5 years TIMB had a positive operating cash flow.
1.2 Ratios
TIMB has a Return On Assets of 6.37%. This is amongst the best in the industry. TIMB outperforms 90.91% of its industry peers.
With an excellent Return On Equity value of 14.43%, TIMB belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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 5.84%.
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
Looking at the Profit Margin, with a value of 13.92%, TIMB belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
TIMB's Profit Margin has declined in the last couple of years.
TIMB's Operating Margin of 23.20% is amongst the best of the industry. TIMB outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of TIMB has declined.
With a Gross Margin value of 42.37%, TIMB is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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.
The number of shares outstanding for TIMB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TIMB has about the same amount of shares outstanding.
TIMB has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.12, TIMB belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
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.
TIMB's Debt to Equity ratio of 0.54 is amongst the best of the industry. TIMB outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.82
WACC15.5%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TIMB may have some problems paying its short term obligations.
The Current ratio of TIMB (0.91) is worse than 77.27% of its industry peers.
A Quick Ratio of 0.88 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a Quick ratio of 0.88. This is in the lower half of the industry: TIMB underperforms 68.18% 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.
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.
TIMB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.32%.
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)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
Based on estimates for the next years, TIMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.22% on average per year.
TIMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y24.44%
EPS Next 2Y20.68%
EPS Next 3Y19.23%
EPS Next 5Y11.22%
Revenue Next Year5.15%
Revenue Next 2Y5.22%
Revenue Next 3Y5.13%
Revenue Next 5Y3.64%
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 15.94, TIMB is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of TIMB indicates a somewhat cheap valuation: TIMB is cheaper than 72.73% 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 27.29.
The Price/Forward Earnings ratio is 12.53, which indicates a correct valuation of TIMB.
Based on the Price/Forward Earnings ratio, TIMB is valued a bit cheaper than 63.64% of the companies in the same industry.
TIMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
TIMB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIMB is cheaper than 86.36% 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 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.5 | ||
| 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.
The decent profitability rating of TIMB may justify a higher PE ratio.
TIMB's earnings are expected to grow with 19.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)1.52
EPS Next 2Y20.68%
EPS Next 3Y19.23%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 7.41%, which is a nice return.
Compared to an average industry Dividend Yield of 8.56, TIMB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TIMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.41% |
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.
TIMB has decreased its dividend 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 2Y20.68%
EPS Next 3Y19.23%
21.84
+0.45 (+2.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners15.84%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.54B
Analysts78
Price Target22.06 (1.01%)
Short Float %1.26%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.41% |
Yearly Dividend1.05
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)5.42%
PT rev (3m)12.4%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.56%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 12.53 | ||
| P/S | 2.2 | ||
| P/FCF | 6.5 | ||
| P/OCF | 4.26 | ||
| P/B | 2.28 | ||
| P/tB | 5.47 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)1.37
EY6.27%
EPS(NY)1.74
Fwd EY7.98%
FCF(TTM)3.36
FCFY15.39%
OCF(TTM)5.12
OCFY23.46%
SpS9.91
BVpS9.56
TBVpS3.99
PEG (NY)0.65
PEG (5Y)1.52
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
WACC15.5%
ROIC/WACC0.82
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 Y24.44%
EPS Next 2Y20.68%
EPS Next 3Y19.23%
EPS Next 5Y11.22%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%4.71%
Revenue Next Year5.15%
Revenue Next 2Y5.22%
Revenue Next 3Y5.13%
Revenue Next 5Y3.64%
EBIT growth 1Y13.02%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.41%
EBIT Next 3Y40.15%
EBIT Next 5Y22.77%
FCF growth 1Y36.02%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y21.73%
OCF growth 3Y6.96%
OCF growth 5Y11.26%