TIM (WSE:TIM) - Share price, News & Analysis

Q: What is the Fair Price of TIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TIM (PLN25.8) is trading below our estimate of [[fair value]] (PLN109.91)

TIM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

TIM Stock Overview

TIM S.A. distributes electro technical products to business and individual customers in Poland.

Rewards

Trading at 76.5% below our estimate of its fair value

Earnings grew by 54.3% over the past year

Trading at good value vs. peer average Price-To-Earnings ratio

Trading at good value vs. industry average Price-To-Earnings ratio

Risk Analysis

Unstable dividend track record

TIM Competitors

Grodno Spólka Akcyjna

WSE:GRN

zł235.3m

Bowim

WSE:BOW

zł163.5m

Stalprofil

WSE:STF

zł151.0m

Berling

WSE:BRG

zł79.9m

Price History & Performance

Summary of all time highs, changes and price drops for TIM
Historical stock prices
Current Share Price	zł25.80
52 Week High	zł46.00
52 Week Low	zł21.35
Beta	0.62
1 Month Change	-4.80%
3 Month Change	-8.02%
1 Year Change	-38.43%
3 Year Change	192.52%
5 Year Change	237.26%
Change since IPO	141.12%

Recent News & Updates

Aug 19

Investors Should Be Encouraged By TIM's (WSE:TIM) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

May 07

If You Like EPS Growth Then Check Out TIM (WSE:TIM) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	TIM	PL Trade Distributors	PL Market
7D	0.6%	-0.4%	-2.2%
1Y	-38.4%	-24.8%	-36.0%

Return vs Industry: TIM underperformed the Polish Trade Distributors industry which returned -24.8% over the past year.

Return vs Market: TIM underperformed the Polish Market which returned -36% over the past year.

Price Volatility

Is TIM's price volatile compared to industry and market?
TIM volatility
TIM Average Weekly Movement	6.3%
Trade Distributors Industry Average Movement	6.5%
Market Average Movement	6.1%
10% most volatile stocks in PL Market	11.6%
10% least volatile stocks in PL Market	3.9%

Stable Share Price: TIM is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TIM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	618	Krzysztof Folta	https://www.tim.pl

TIM S.A. distributes electro technical products to business and individual customers in Poland. Its products include electrical apparatus, sockets and connectors, light sources, cables and wires, cable routing elements, switchgears and enclosures, power tools and meters, house and garden products, office supplies, light fixtures, connecting accessories, protective and health and safety clothing, consumer electronics, ventilation and heating products, and lightning protection products; intercoms and bells, photovoltaics, and pneumatics; IT and GSM products; hobbies, health, and tourism products; and electronic home appliances, as well as alarms, monitoring, and communication products. The company sells its products through its Website TIM.pl and mobile application mTIM; and a network of sales offices and sales representatives.

TIM Fundamentals Summary

How do TIM's earnings and revenue compare to its market cap?
TIM fundamental statistics
Market Cap	zł572.74m
Earnings (TTM)	zł109.13m
Revenue (TTM)	zł1.48b

5.2x

P/E Ratio

0.4x

P/S Ratio

Is TIM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TIM income statement (TTM)
Revenue	zł1.48b
Cost of Revenue	zł1.13b
Gross Profit	zł349.54m
Other Expenses	zł240.41m
Earnings	zł109.13m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 23, 2022

Earnings per share (EPS)	4.92
Gross Margin	23.55%
Net Profit Margin	7.35%
Debt/Equity Ratio	2.6%

How did TIM perform over the long term?

See historical performance and comparison

Dividends

9.3%

Current Dividend Yield

24%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TIM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TIM. This is calculated by dividing TIM's market cap by their current preferred multiple.
What is TIM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	zł572.74m

TIM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	4.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does TIM's PE Ratio compare to its peers?

TIM PE Ratio vs Peers

The above table shows the PE ratio for TIM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	3.4x
GRN Grodno Spólka Akcyjna	5.3x	n/a	zł235.3m
BOW Bowim	1.2x	n/a	zł163.5m
STF Stalprofil	1.2x	n/a	zł151.0m
BRG Berling	5.9x	n/a	zł79.9m
TIM TIM	5.2x	n/a	zł572.7m

Price-To-Earnings vs Peers: TIM is expensive based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (3.4x).

Price to Earnings Ratio vs Industry

How does TIM's PE Ratio compare vs other companies in the European Trade Distributors Industry?

Price-To-Earnings vs Industry: TIM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the European Trade Distributors industry average (11x)

Price to Earnings Ratio vs Fair Ratio

What is TIM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TIM's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of TIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TIM (PLN25.8) is trading below our estimate of fair value (PLN109.91)

Significantly Below Fair Value: TIM is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.3%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as TIM has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether TIM is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
TIM competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has TIM performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

63.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TIM has high quality earnings.

Growing Profit Margin: TIM's current net profit margins (7.4%) are higher than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: TIM has become profitable over the past 5 years, growing earnings by 63.3% per year.

Accelerating Growth: TIM's earnings growth over the past year (54.3%) is below its 5-year average (63.3% per year).

Earnings vs Industry: TIM earnings growth over the past year (54.3%) exceeded the Trade Distributors industry 31.3%.

Return on Equity

High ROE: TIM's Return on Equity (43.8%) is considered outstanding.

Discover strong past performing companies

Financial Health

How is TIM's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TIM's short term assets (PLN522.1M) exceed its short term liabilities (PLN339.6M).

Long Term Liabilities: TIM's short term assets (PLN522.1M) exceed its long term liabilities (PLN117.3M).

Debt to Equity History and Analysis

Debt Level: TIM has more cash than its total debt.

Reducing Debt: TIM's debt to equity ratio has increased from 0.7% to 2.6% over the past 5 years.

Debt Coverage: TIM's debt is well covered by operating cash flow (1392%).

Interest Coverage: TIM's interest payments on its debt are well covered by EBIT (14.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

9.30%

Current Dividend Yield

Dividend Yield vs Market

TIM Dividend Yield vs Market

How does TIM dividend yield compare to the market?
Segment	Dividend Yield
Company (TIM)	9.3%
Market Bottom 25% (PL)	3.0%
Market Top 25% (PL)	9.4%
Industry Average (Trade Distributors)	11.1%
Analyst forecast in 3 Years (TIM)	n/a

Notable Dividend: TIM's dividend (9.3%) is higher than the bottom 25% of dividend payers in the Polish market (3.04%).

High Dividend: TIM's dividend (9.3%) is low compared to the top 25% of dividend payers in the Polish market (9.36%).

Stability and Growth of Payments

Stable Dividend: TIM's dividend payments have been volatile in the past 10 years.

Growing Dividend: TIM's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.4%), TIM's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64.4%), TIM's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure

CEO

Krzysztof Folta

27.33yrs

Tenure

zł1,410,000

Compensation

Mr. Krzysztof Folta, M.Sc. Eng. has been the President of the Management Board at TIM Spolka Akcyjna since June 15, 1995 and also serves as its Member of The Management Board. Mr. Folta serves as the Chief...

CEO Compensation Analysis

Krzysztof Folta's Compensation vs TIM Earnings

How has Krzysztof Folta's remuneration changed compared to TIM's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	zł109m
Mar 31 2022	n/a	n/a	zł110m
Dec 31 2021	zł1m	zł690k	zł92m
Sep 30 2021	n/a	n/a	zł85m
Jun 30 2021	n/a	n/a	zł71m
Mar 31 2021	n/a	n/a	zł50m
Dec 31 2020	zł1m	zł600k	zł37m
Sep 30 2020	n/a	n/a	zł25m
Jun 30 2020	n/a	n/a	zł21m
Mar 31 2020	n/a	n/a	zł16m
Dec 31 2019	zł12m	zł12m	zł20m
Sep 30 2019	n/a	n/a	zł18m
Jun 30 2019	n/a	n/a	zł17m
Mar 31 2019	n/a	n/a	zł17m
Dec 31 2018	zł795k	n/a	zł15m
Sep 30 2018	n/a	n/a	zł10m
Jun 30 2018	n/a	n/a	zł6m
Mar 31 2018	n/a	n/a	zł141k
Dec 31 2017	n/a	n/a	-zł4m
Sep 30 2017	n/a	n/a	-zł4m
Jun 30 2017	n/a	n/a	-zł7m
Mar 31 2017	n/a	n/a	-zł4m
Dec 31 2016	zł777k	zł508k	zł2m
Sep 30 2016	n/a	n/a	zł8m
Jun 30 2016	n/a	n/a	zł11m
Mar 31 2016	n/a	n/a	zł9m
Dec 31 2015	zł429k	n/a	zł5m

Compensation vs Market: Krzysztof's total compensation ($USD292.36K) is about average for companies of similar size in the Polish market ($USD253.76K).

Compensation vs Earnings: Krzysztof's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TIM's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: TIM's board of directors are seasoned and experienced ( 19.3 years average tenure).

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

What is the ownership structure of TIM?
Owner Type	Number of Shares	Ownership Percentage
Institutions	4,435,464	20.0%
Individual Insiders	8,421,055	37.9%
General Public	9,342,681	42.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 57.7% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
23.45%	Krzysztof Folta	5,204,814	PLN134.3m	0%	no data
13.51%	Krzysztof Wieczorkowski	3,000,000	PLN77.4m	0%	no data
7.05%	NN Investment Partners Holdings N.V.	1,565,649	PLN40.4m	0%	0.03%
4.97%	Rockbridge TFI S.A.	1,104,108	PLN28.5m	0%	8.77%
2.66%	Norges Bank Investment Management	590,520	PLN15.2m	0%	no data
1.38%	Santander Towarzystwo Funduszy Inwestycyjnych S.A.	306,948	PLN7.9m	-46.09%	0.26%
0.91%	Piotr Tokarczuk	202,000	PLN5.2m	0%	no data
0.75%	Value Square NV	166,553	PLN4.3m	0%	0.32%
0.51%	AgioFunds Towarzystwo Funduszy Inwestycyjnych S.A.	114,000	PLN2.9m	0%	0.51%
0.39%	Dimensional Fund Advisors LP	85,784	PLN2.2m	2.19%	no data
0.33%	AXA Towarzystwo Funduszy Inwestycyjnych S.A.	73,643	PLN1.9m	-42.7%	0.2%
0.25%	Quercus TFI S.A.	55,694	PLN1.4m	21.88%	0.28%
0.21%	Skarbiec Towarzystwo Funduszy Inwestycyjnych S.A.	45,966	PLN1.2m	-61.84%	0.06%
0.2%	Towarzystwo Funduszy Inwestycyjnych PZU SA	45,083	PLN1.2m	-17.66%	0.04%
0.18%	The Vanguard Group, Inc.	40,641	PLN1.0m	0%	no data
0.16%	Esaliens TFI S.A.	35,000	PLN903.0k	0%	0.09%
0.14%	BG Fund Management Luxembourg S.A.	30,664	PLN791.1k	0%	0.01%
0.11%	Millennium Towarzystwo Funduszy Inwestycyjnych SA	24,441	PLN630.6k	-62.57%	0.13%
0.092%	Aviva Investors Poland Towarzystwo Funduszy Inwestycyjnych S.A.	20,468	PLN528.1k	0%	0.05%
0.084%	Acadian Asset Management LLC	18,586	PLN479.5k	0.02%	no data
0.077%	Metlife Towarzystwo Funduszy Inwestycyjnych S.A.	17,184	PLN443.3k	-44%	0.02%
0.072%	NFS Capital AG	16,075	PLN414.7k	0%	0.04%
0.071%	Ipopema Towarzystwo Funduszy Inwestycyjnych S.A.	15,782	PLN407.2k	-8.68%	0.07%
0.065%	Alior Towarzystwo Funduszy Inwestycyjnych S.A.	14,500	PLN374.1k	0%	0.62%
0.064%	Piotr Nosal	14,241	PLN367.4k	0%	no data

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
TIM	WSE (Warsaw Stock Exchange)	Yes	Common Bearer Shares	PL	PLN	Mar 1998
7G2	DB (Deutsche Boerse AG)	Yes	Common Bearer Shares	DE	EUR	Mar 1998

Data	Last Updated (UTC time)
Company Analysis	2022/10/04 00:00
End of Day Share Price	2022/10/04 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31