TIM SA-ADR (TIMB) Stock Fundamental Analysis
NYSE:TIMB - New York Stock Exchange, Inc. - US88706T1088 - ADR - Currency: USD
TIMB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. While TIMB has a great profitability rating, 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! These ratings would make TIMB suitable 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.
Each year in the past 5 years TIMB has been profitable.
In the past 5 years TIMB always reported a positive cash flow from operatings.
1.2 Ratios
TIMB's Return On Assets of 5.60% is amongst the best of the industry. TIMB outperforms 85.71% of its industry peers.
With a decent Return On Equity value of 11.94%, TIMB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.61%, TIMB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
TIMB had an Average Return On Invested Capital over the past 3 years of 9.42%. This is above the industry average of 6.19%.
The last Return On Invested Capital (11.61%) for TIMB is above the 3 year average (9.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.94% | ||
| ROIC | 11.61% |
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 Profit Margin of 12.39%. This is amongst the best in the industry. TIMB outperforms 85.71% of its industry peers.
TIMB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.52%, TIMB belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
TIMB's Operating Margin has declined in the last couple of years.
TIMB has a Gross Margin of 42.11%. This is in the lower half of the industry: TIMB underperforms 76.19% of its industry peers.
In the last couple of years the Gross Margin of TIMB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 12.39% | ||
| GM | 42.11% |
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.
The debt/assets ratio for TIMB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.00 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 2.00, TIMB belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
The Debt to FCF ratio of TIMB is 2.04, which is a good value as it means it would take TIMB, 2.04 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.04, TIMB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that TIMB is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.52, TIMB is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.04 | ||
| Altman-Z | 2 |
ROIC/WACC0.69
WACC16.75%
2.3 Liquidity
A Current Ratio of 0.99 indicates that TIMB may have some problems paying its short term obligations.
TIMB has a worse Current ratio (0.99) than 71.43% of its industry peers.
A Quick Ratio of 0.96 indicates that TIMB may have some problems paying its short term obligations.
TIMB's Quick ratio of 0.96 is on the low side compared to the rest of the industry. TIMB is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
TIMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.17%, which is quite good.
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%.
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)10.17%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%5.67%
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 13.04% on average per year.
Based on estimates for the next years, TIMB will show a small growth in Revenue. The Revenue will grow by 4.97% on average per year.
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y13.04%
Revenue Next Year5.16%
Revenue Next 2Y5.01%
Revenue Next 3Y4.88%
Revenue Next 5Y4.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TIMB is valuated correctly with a Price/Earnings ratio of 14.29.
Based on the Price/Earnings ratio, TIMB is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TIMB to the average of the S&P500 Index (28.22), we can say TIMB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.60, the valuation of TIMB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TIMB is valued a bit cheaper than 66.67% of the companies in the same industry.
TIMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIMB is valued cheaper than 85.71% 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 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 4.11 |
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.
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)0.61
PEG (5Y)1.36
EPS Next 2Y20.53%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
TIMB has a Yearly Dividend Yield of 7.75%, which is a nice return.
TIMB's Dividend Yield is rather good when compared to the industry average which is at 5.43. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
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 in the last 3 years.
Dividend Growth(5Y)23.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
86.25% 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.
DP86.25%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
16.58
+0.05 (+0.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners14.82%
Inst Owner Change-6.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.02B
Analysts81.05
Price Target16.51 (-0.42%)
Short Float %1.19%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
Yearly Dividend0.99
Dividend Growth(5Y)23.74%
DP86.25%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.29%
Min EPS beat(2)-3.93%
Max EPS beat(2)-0.65%
EPS beat(4)0
Avg EPS beat(4)-4.78%
Min EPS beat(4)-12.93%
Max EPS beat(4)-0.65%
EPS beat(8)4
Avg EPS beat(8)12.55%
EPS beat(12)6
Avg EPS beat(12)7.92%
EPS beat(16)9
Avg EPS beat(16)18.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.53%
Revenue beat(16)2
Avg Revenue beat(16)-1.82%
PT rev (1m)10.37%
PT rev (3m)23.22%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-15.2%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.77 | ||
| P/FCF | 5.89 | ||
| P/OCF | 3.65 | ||
| P/B | 1.71 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)1.16
EY7%
EPS(NY)1.43
Fwd EY8.62%
FCF(TTM)2.82
FCFY16.98%
OCF(TTM)4.54
OCFY27.38%
SpS9.37
BVpS9.72
TBVpS4.25
PEG (NY)0.61
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.94% | ||
| ROCE | 13.18% | ||
| ROIC | 11.61% | ||
| ROICexc | 13.35% | ||
| ROICexgc | 22% | ||
| OM | 22.52% | ||
| PM (TTM) | 12.39% | ||
| GM | 42.11% | ||
| FCFM | 30.06% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.04 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 66.63% | ||
| Cap/Sales | 18.4% | ||
| Interest Coverage | 3.57 | ||
| Cash Conversion | 96.66% | ||
| Profit Quality | 242.55% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2 |
F-Score8
WACC16.75%
ROIC/WACC0.69
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)10.17%
EPS 3Y2.08%
EPS 5Y10.47%
EPS Q2Q%-2.22%
EPS Next Y23.46%
EPS Next 2Y20.53%
EPS Next 3Y19.12%
EPS Next 5Y13.04%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y12.11%
Revenue growth 5Y7.93%
Sales Q2Q%5.67%
Revenue Next Year5.16%
Revenue Next 2Y5.01%
Revenue Next 3Y4.88%
Revenue Next 5Y4.97%
EBIT growth 1Y21.44%
EBIT growth 3Y21.58%
EBIT growth 5Y4.56%
EBIT Next Year144.13%
EBIT Next 3Y39.9%
EBIT Next 5Y24.95%
FCF growth 1Y-3.37%
FCF growth 3Y16.85%
FCF growth 5Y17.75%
OCF growth 1Y-0.72%
OCF growth 3Y6.96%
OCF growth 5Y11.26%