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TIM SA ADR TIMB

Morningstar Rating
$17.72 −0.32 (1.75%)
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Company Report

Improving Competitive Balance in Brazil Continues to Benefit TIM

TIM, 67%-owned by Telecom Italia, is the smallest of the three remaining major wireless carriers in Brazil, claiming about 24% market share based on customers served. The removal of Oi from the market in 2022 has greatly improved the competitive environment, allowing TIM and its rivals to increase prices and improve profitability. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

Price vs Fair Value

TIMB is trading at a 14% discount.
Price
$18.09
Fair Value
$28.00
Uncertainty
High
1-Star Price
$49.95
5-Star Price
$23.80
Economic Moat
Jgzz
Capital Allocation
Qvgjmsm

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.

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Trading Information

Previous Close Price
$18.03
Day Range
$17.6417.81
52-Week Range
$11.9219.13
Bid/Ask
$17.71 / $17.72
Market Cap
$8.58 Bil
Volume/Avg
355,780 / 464,469

Key Statistics

Price/Earnings (Normalized)
18.79
Price/Sales
1.83
Dividend Yield (Trailing)
3.73%
Dividend Yield (Forward)
3.73%
Total Yield
3.73%

Company Profile

TIM, which is 67%-owned by Telecom Italia, is the third largest wireless carrier in Brazil, with 61 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.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Core
Total Number of Employees
9,275

Competitors

Valuation

Metric
TIMB
TIGO SDB
VIV
Price/Earnings (Normalized)
18.7937.5416.27
Price/Book Value
1.671.031.17
Price/Sales
1.830.601.61
Price/Cash Flow
4.032.534.61
Price/Earnings
TIMB
TIGO SDB
VIV

Financial Strength

Metric
TIMB
TIGO SDB
VIV
Quick Ratio
0.600.690.81
Current Ratio
0.700.820.96
Interest Coverage
1.841.259.70
Quick Ratio
TIMB
TIGO SDB
VIV

Profitability

Metric
TIMB
TIGO SDB
VIV
Return on Assets (Normalized)
−1.50%3.90%
Return on Equity (Normalized)
−6.01%6.78%
Return on Invested Capital (Normalized)
1.83%5.20%
Return on Assets
TIMB
TIGO SDB
VIV
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