BOVESPA:TIMS3

Stock Analysis Report

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Executive Summary

TIM S.A. operates as a telecommunication services provider in Brazil. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

How has TIM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TIMS3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: Insufficient data to determine TIMS3's volatility change over the past year.


Market Performance


7 Day Return

-5.8%

TIMS3

0.2%

BR Wireless Telecom

-2.6%

BR Market


1 Year Return

n/a

TIMS3

5.9%

BR Wireless Telecom

-2.2%

BR Market

Return vs Industry: Insufficient data to determine how TIMS3 performed against the BR Wireless Telecom industry.

Return vs Market: Insufficient data to determine how TIMS3 performed against the BR Market.


Shareholder returns

TIMS3IndustryMarket
7 Day-5.8%0.2%-2.6%
30 Day-8.8%3.5%0.6%
90 Day2.2%11.6%14.3%
1 Yearn/a10.0%5.9%0.4%-2.2%
3 Yearn/a11.4%0.07%47.3%31.4%
5 Yearn/a41.3%17.0%195.4%144.8%

Long-Term Price Volatility Vs. Market

How volatile is TIM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TIM undervalued compared to its fair value and its price relative to the market?

20.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TIMS3 (R$13.23) is trading above our estimate of fair value (R$10.58)

Significantly Below Fair Value: TIMS3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TIMS3 is poor value based on its PE Ratio (20.4x) compared to the XX Wireless Telecom industry average (17.8x).

PE vs Market: TIMS3 is poor value based on its PE Ratio (20.4x) compared to the BR market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: TIMS3 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TIMS3 is good value based on its PB Ratio (1.4x) compared to the XX Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is TIM forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIMS3's forecast earnings growth (25.4% per year) is above the savings rate (9.9%).

Earnings vs Market: TIMS3's earnings (25.4% per year) are forecast to grow slower than the BR market (27.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TIMS3's revenue (4.1% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: TIMS3's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TIMS3's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has TIM performed over the past 5 years?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIMS3 has a large one-off gain of R$3.1B impacting its September 30 2020 financial results.

Growing Profit Margin: TIMS3's current net profit margins (9.2%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: TIMS3's earnings have grown significantly by 47.5% per year over the past 5 years.

Accelerating Growth: TIMS3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TIMS3 had negative earnings growth (-52.1%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-1.8%).


Return on Equity

High ROE: TIMS3's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is TIM's financial position?


Financial Position Analysis

Short Term Liabilities: TIMS3's short term assets (R$9.6B) exceed its short term liabilities (R$6.7B).

Long Term Liabilities: TIMS3's short term assets (R$9.6B) do not cover its long term liabilities (R$9.9B).


Debt to Equity History and Analysis

Debt Level: TIMS3's debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: TIMS3's debt to equity ratio has reduced from 42.9% to 11.2% over the past 5 years.

Debt Coverage: TIMS3's debt is well covered by operating cash flow (336.5%).

Interest Coverage: Insufficient data to determine if TIMS3's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is TIM current dividend yield, its reliability and sustainability?

3.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TIMS3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TIMS3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TIMS3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TIMS3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TIMS3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Pietro Labriola (53 yo)

no data

Tenure

Mr. Pietro Labriola serves as Chief Executive Officer at TIM S.A. Mr. Labriola serves as Chief Executive Officer at TIM Participações S.A. since April 3, 2019. He has been Director at TIM Participações S.A...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: TIMS3 only recently listed within the past 12 months.


Top Shareholders

Company Information

TIM S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TIM S.A.
  • Ticker: TIMS3
  • Exchange: BOVESPA
  • Founded: 1998
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$32.197b
  • Shares outstanding: 2.42b
  • Website: https://ri.tim.com.br/Default.aspx

Number of Employees


Location

  • TIM S.A.
  • Rua Fonseca Teles, nº 18 a 30
  • Bloco B, 3º pavimento
  • Rio De Janeiro
  • Rio de Janeiro
  • 20940-904
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIMS3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLOct 2020
TIMBNYSE (New York Stock Exchange)SPONSORED ADRUSUSDOct 2020

Biography

TIM S.A. operates as a telecommunication services provider in Brazil. It offers mobile, fixed telephony, and Internet access via modem, tablet, and cell phone, as well as ultra fixed broadband services. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 21:59
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.