NYSE:TSU

Stock Analysis Report

Executive Summary

TIM Participações S.A. provides telecommunication services in Brazil.

Snowflake

Fundamentals

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

TSU

1.6%

US Wireless Telecom

1.8%

US Market


1 Year Return

-8.5%

TSU

3.2%

US Wireless Telecom

7.3%

US Market

Return vs Industry: TSU underperformed the US Wireless Telecom industry which returned 3.2% over the past year.

Return vs Market: TSU underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

TSUIndustryMarket
7 Day-0.6%1.6%1.8%
30 Day-5.8%-0.9%-0.7%
90 Day-15.1%-2.8%0.06%
1 Year-5.8%-8.5%4.5%3.2%9.7%7.3%
3 Year6.2%0.7%34.5%29.6%46.3%36.9%
5 Year-32.7%-38.4%51.5%37.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TSU ($13.8) is trading below our estimate of fair value ($18.04)

Significantly Undervalued: TSU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TSU is good value based on its PE Ratio (6.8x) compared to the Wireless Telecom industry average (22.1x).

PE vs Market: TSU is good value based on its PE Ratio (6.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TSU is good value based on its PB Ratio (1.3x) compared to the US Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is TIM Participações forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSU's forecast earnings growth (8.4% per year) is above the savings rate (2.7%).

Earnings vs Market: TSU's earnings (8.4% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: TSU's earnings are forecast to grow, but not significantly.

Revenue vs Market: TSU's revenue (4.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TSU's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TSU's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has TIM Participações performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TSU's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: TSU's earnings growth over the past year (180.7%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: TSU earnings growth over the past year (180.7%) exceeded the Wireless Telecom industry 7.7%.


Return on Equity

High ROE: TSU's Return on Equity (18.7%) is considered low.


Return on Assets

ROA vs Industry: TSU has a higher Return on Assets than the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: TSU has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TIM Participações's financial position?


Financial Position Analysis

Short Term Liabilities: TSU's short term assets (R$6.0B) exceeds its short term liabilities (R$5.7B)

Long Term Liabilities: TSU's short term assets (6.0B) do not cover its long term liabilities (10.8B)


Debt to Equity History and Analysis

Debt Level: TSU's debt to equity ratio (10.8%) is considered satisfactory

Reducing Debt: TSU's debt to equity ratio has reduced from 42.8% to 10.8% over the past 5 years.

Debt Coverage: TSU's debt is well covered by operating cash flow (252.6%).

Interest Coverage: TSU's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: TSU has a high level of physical assets or inventory.

Debt Coverage by Assets: TSU's debt is covered by short term assets (assets are 2.519560x debt).


Next Steps

Dividend

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

3.04%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.7%industryaverage7.9%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TSU's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TSU's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), TSU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TSU's dividends in 3 years are forecast to be covered by earnings (64% payout ratio).


Next Steps

Management

What is the CEO of TIM Participações's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Pietro Labriola (52yo)

0.5yrs

Tenure

0

Mr. Pietro Labriola serves as Chief Executive Officer at TIM Participações S.A. since April 3, 2019. He has been Director at TIM Participações S.A. since February 6, 2019 and served as its Chief Operating  ...


Management Age and Tenure

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: TSU's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

1.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: TSU's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Adrian Calaza (52yo)

    CFO, Investor Relation Officer & Member of Board of Statutory Officers

    • Tenure: 3.1yrs
  • Bruno Gentil (50yo)

    Bus. Support Officer

    • Tenure: 1.7yrs
  • Mario Girasole (51yo)

    Regulatory & Institutional Affairs Officer and Member of Board of Statutory Officers

    • Tenure: 5.5yrs
  • Alberto Griselli (50yo)

    Chief Revenue Officer

    • Tenure: 0.3yrs
  • Jaques Horn (55yo)

    Chief Legal Officer

    • Tenure: 5.5yrs
  • Leonardo De Capdeville (50yo)

    CTO & Member of Board of Statutory Officers

    • Tenure: 4.7yrs
  • Pietro Labriola (52yo)

    CEO, Member of Board of Statutory Officers & Director

    • Tenure: 0.5yrs
  • Renato Ciuchini

    Head of Marketing

    • Tenure: 0yrs

Board Members

  • Nicandro Durante (63yo)

    Independent Chairman of the Board

    • Tenure: 0.5yrs
  • Piergiorgio Peluso (51yo)

    Director

    • Tenure: 1.6yrs
  • Herculano Alves (66yo)

    Independent Director

    • Tenure: 4.5yrs
  • Agostino Nuzzolo (51yo)

    Director

    • Tenure: 1.6yrs
  • Pietro Labriola (52yo)

    CEO, Member of Board of Statutory Officers & Director

    • Tenure: 0.5yrs
  • Walmir Kesseli (60yo)

    Chairman of the Fiscal Council

    • Tenure: 0yrs
  • Raimondo Zizza (55yo)

    Director

    • Tenure: 1.6yrs
  • Elisabetta Romano (56yo)

    Director

    • Tenure: 0.6yrs
  • Carlo Nardello (55yo)

    Director

    • Tenure: 0.6yrs
  • Gesner de Oliveira Filho (63yo)

    Independent Director

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: TIM Participações S.A.
  • Ticker: TSU
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: R$27.980b
  • Listing Market Cap: R$6.751b
  • Shares outstanding: 2.42b
  • Website: https://www.tim.com.br/ir

Number of Employees


Location

  • TIM Participações S.A.
  • North Tower
  • 12th Floor
  • Rio de Janeiro
  • Rio de Janeiro
  • 22775-055
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIMP3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLSep 1998
TSUNYSE (New York Stock Exchange)ADR EACH REP 10 PREF NPV(BNY)USUSDNov 1998
TCLADB (Deutsche Boerse AG)ADR EACH REP 10 PREF NPV(BNY)DEEURNov 1998
TSU NBMV (Bolsa Mexicana de Valores)ADR EACH REP 10 PREF NPV(BNY)MXMXNNov 1998

Biography

TIM Participações S.A. provides telecommunication services in Brazil. It offers mobile voice and data, broadband Internet access, value-added, and other telecommunications services and products. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:46
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.