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TIM Earnings: Growth Decelerated Slightly as Movil and Vivo Continue to Gain Share
TIM posted modestly disappointing first-quarter results, but we don’t see any reason to change our outlook for the year or our $21 fair value estimate.
TIM SA ADR TIMB
Bulls Say, Bears Say
Bulls
TIM claims roughly 24% of the Brazilian wireless market, which should give it plenty of scale to generate strong cash flows.
Bears
TIM’s minimal fixed-line presence prevents it from offering bundled wireless and fixed-line services. Limited fixed-line infrastructure will also hurt the firm as it rolls out 5G wireless technology.
Trading Information
- Previous Close Price
- $15.84
- Day Range
- $14.99–15.32
- 52-Week Range
- $13.58–19.14
- Bid/Ask
- $0.00 / $16.84
- Market Cap
- $7.37 Bil
- Volume/Avg
- 1.1 Mil / 459,654
Key Statistics
- Price/Earnings (Normalized)
- 15.51
- Price/Sales
- 1.55
- Dividend Yield (Trailing)
- 6.97%
- Dividend Yield (Forward)
- 6.97%
- Total Yield
- 6.98%
Company Profile
TIM, which is 67%-owned by Telecom Italia, is the third largest wireless carrier in Brazil, with 63 million subscribers, equal to about 24% of the market. The firm also owns 49% of I-Systems, an infrastructure partnership that is expanding its network footprint across Brazil. I-Systems can provide broadband service to about 9 million locations, equal to a bit less than 15% of the country. TIM leases capacity on the venture's network to serve retail broadband customers under the UltraFibra brand. TIM also resells fiber network access from other providers, including V.tal, which passes about 21 million customer locations.
- Sector
- Communication Services
- Industry
- Telecom Services
- Stock Style Box
- Large Core
- Total Number of Employees
- 9,275
- Website
- https://ri.tim.com.br
Competitors
Valuation
|
Metric
|
TIMB
|
TIGO SDB
|
VIV
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.51 | 126.84 | 13.04 |
Price/Book Value | 1.38 | 1.13 | 1.01 |
Price/Sales | 1.55 | 0.71 | 1.29 |
Price/Cash Flow | 3.40 | 2.82 | 3.68 |
Price/Earnings
TIMB
TIGO SDB
VIV
Financial Strength
|
Metric
|
TIMB
|
TIGO SDB
|
VIV
|
|---|---|---|---|
Quick Ratio | 0.80 | 0.47 | 0.82 |
Current Ratio | 0.89 | 0.86 | 1.01 |
Interest Coverage | 2.03 | 1.41 | 5.79 |
Quick Ratio
TIMB
TIGO SDB
VIV
Profitability
|
Metric
|
TIMB
|
TIGO SDB
|
VIV
|
|---|---|---|---|
Return on Assets (Normalized) | 4.41% | −0.87% | 5.39% |
Return on Equity (Normalized) | 9.69% | −3.50% | 9.46% |
Return on Invested Capital (Normalized) | 8.01% | 2.57% | 7.92% |
Return on Assets
TIMB
TIGO SDB
VIV
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