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TIM Group (TIIAY)
OTHER OTC:TIIAY
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TIM Group
(OTC:TIIAY)
Select Model
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Rating:55Neutral
Price Target:
$6.00
▲(2.92% Upside)
The overall stock score reflects a mixed outlook. The most significant factor is the company's financial performance, which is currently weak due to negative net income and high debt levels. However, the positive sentiment from the earnings call and technical indicators showing a positive trend provide some optimism. The high P/E ratio suggests overvaluation, which tempers the overall score.
Positive Factors
Strategic Partnerships
The partnership with Poste Italiane enhances TIM's market position and expands its service offerings, supporting long-term growth in digital transformation.
Revenue Growth in Brazil
Strong performance in Brazil, particularly in 5G, reinforces TIM's competitive advantage and supports sustained revenue growth and market leadership.
Successful Bond Issuance
The successful bond issuance indicates strong investor confidence, providing TIM with financial flexibility to support strategic initiatives and reduce leverage.
Negative Factors
High Debt Levels
High leverage poses a risk to financial stability, limiting TIM's ability to invest in growth opportunities and potentially affecting long-term profitability.
Negative Free Cash Flow
Negative free cash flow indicates challenges in cash generation, which may constrain TIM's ability to fund operations and growth initiatives sustainably.
Declining Gross Profit Margin
The decline in gross profit margin suggests reduced efficiency and cost management, potentially impacting TIM's ability to maintain competitive pricing and profitability.
TIM Group (TIIAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.82B
Dividend YieldN/A
Average Volume (3M)723.00
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-6.15%
EPS Growth97.16%
CountryUS
Employees26,282
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.00
Shares Outstanding1,532,946,700
10 Day Avg. Volume0
30 Day Avg. Volume723
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.43
Price to Sales (P/S)0.35
P/FCF Ratio12.71
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit4.68
Enterprise Value/Ebitda7.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)$15.93B
TIM Group Business Overview & Revenue Model
Company DescriptionTelecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. In addition, it is involved in customer care, operating credit support, loyalty, and retention activities. The company has a strategic partnership with Google Cloud. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.
How the Company Makes MoneyTIM Group generates revenue through multiple streams, primarily from its mobile and fixed-line services. The company earns money by charging customers for voice and data plans, broadband subscriptions, and television services. Additionally, TIM Group capitalizes on its extensive network infrastructure by offering wholesale services to other telecom operators. Significant partnerships with technology firms and content providers also contribute to its earnings, allowing TIM to bundle services and create value-added offerings. Furthermore, the company's initiatives in digital services, such as cloud solutions and IoT applications, are emerging revenue sources that align with the growing demand for digital transformation in various sectors.
TIM Group Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic advancements, particularly in Brazil and through partnerships with Poste Italiane. However, challenges such as the decline in MVNO revenue and stagnant mobile ARPU were noted. Overall, the sentiment of the call was positive with TIM on track to meet full-year targets.Q3-2025 Updates
Positive Updates
Strong Financial Performance in Q3 2025
TIM delivered a solid operational and financial performance in Q3 2025, with total revenues up 2% to 3% year-on-year and service revenue growing 3%. EBITDA after lease increased 5% to 3%, and equity free cash flow confirmed a structural improvement versus last year.
Successful Bond Issuance
In September, TIM successfully issued a EUR 500 million bond with the lowest spread in the past 15 years for TIM, receiving demand six times the offer, indicating strong investor confidence.
Robust Growth in Brazil
TIM Brazil delivered strong results with consistent growth and improved cash generation, maintaining its leadership in 5G coverage now reaching over 1,000 cities.
Progress in Strategic Partnerships
TIM strengthened its partnership with Poste Italiane, launching TIM Energia powered by Poste and signing a letter of intent to establish a joint venture focused on cloud and AI, positioning TIM and Poste as leaders in Italy's digital transformation.
Negative Updates
MVNO Revenue Decline
Service revenues in the consumer segment were slightly negative at minus 0.5% year-on-year, mainly due to a lower contribution from MVNOs, although this was anticipated in the plan.
Stagnant Mobile ARPU
Despite repricing actions, mobile ARPU remained stable due to a balance between price increases and ARPU dilution from the difference between front book and back book pricing.
Company Guidance
In the TIM 9-month 2025 Results Presentation, the company confirmed its full-year guidance, highlighting solid performance across its operations in Italy and Brazil. Key financial metrics included a 2% to 3% year-on-year increase in total revenues, with service revenue growing 3%. EBITDA after lease saw an increase of 5% to 3%, and CapEx was reported at EUR 1.2 billion, representing 12% of total revenues. The equity free cash flow after lease was positive at EUR 50 million in Q3, with expectations to reach EUR 500 million for the full year. Net debt after lease remained stable around EUR 7.5 billion, with a leverage ratio below 2.1x. Additionally, the domestic business experienced a 1.2% growth in total revenues and a 1.9% increase in service revenue. The company also noted a successful bond issuance of EUR 500 million with the lowest spread in 15 years, demonstrating investor confidence. TIM's strategic initiatives included a strengthened partnership with Poste Italiane and advancing digital transformation efforts through cloud and AI ventures.TIM Group Financial Statement Overview
Summary
TIM Group's financial statements reflect challenges in profitability and cash flow management. Despite some improvement in leverage and revenue growth, persistent negative net income and high debt levels are concerning. The company needs to focus on improving operational efficiency and reducing debt to enhance financial stability and shareholder value.Income Statement
The income statement shows a declining trend in gross profit margin from 64.08% in 2020 to 42.53% in TTM 2025, indicating reduced efficiency in generating profit from revenue. Net profit margin has been negative since 2021, with a slight improvement in TTM 2025, but still negative at -2.42%. Revenue growth is inconsistent, with a minor increase of 1.38% in TTM 2025. The EBIT and EBITDA margins have shown some stability, but overall profitability remains a concern.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, peaking at 2.31 in 2023, indicating significant leverage. Although it has improved to 1.27 in TTM 2025, it remains a risk factor. Return on equity has been negative since 2021, reflecting poor returns for shareholders. The equity ratio has been stable, but the high leverage poses a potential risk to financial stability.50
Neutral
Cash Flow
Cash flow analysis shows a negative free cash flow in TTM 2025, with a significant decline in free cash flow growth rate. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.98B | 14.44B | 16.30B | 15.79B | 15.32B | 15.80B |
| Gross Profit | 5.95B | 6.73B | 8.08B | 9.13B | 9.25B | 10.13B |
| EBITDA | 3.48B | 4.80B | 5.71B | 5.51B | 1.16B | 7.25B |
| Net Income | -96.00M | -610.00M | -1.44B | -2.92B | -8.65B | 7.22B |
Balance Sheet | ||||||
| Total Assets | 36.45B | 37.66B | 62.16B | 62.03B | 69.19B | 73.23B |
| Cash, Cash Equivalents and Short-Term Investments | 2.88B | 4.46B | 4.97B | 5.00B | 9.15B | 5.92B |
| Total Debt | 13.37B | 14.72B | 32.64B | 31.19B | 32.10B | 29.95B |
| Total Liabilities | 23.25B | 24.30B | 44.65B | 43.30B | 47.15B | 44.39B |
| Stockholders Equity | 11.86B | 11.96B | 13.65B | 15.06B | 17.41B | 26.21B |
Cash Flow | ||||||
| Free Cash Flow | -286.00M | 402.00M | -25.00M | -1.41B | 323.00M | 1.85B |
| Operating Cash Flow | 2.34B | 3.25B | 3.94B | 4.89B | 4.34B | 6.55B |
| Investing Cash Flow | 6.47B | 4.94B | -4.15B | -5.33B | -5.12B | -3.08B |
| Financing Cash Flow | -6.58B | -7.41B | -456.00M | -2.87B | 3.16B | -2.01B |
TIM Group Technical Analysis
Positive
5.83
Price Trends
5.68
Positive
5.36
Positive
4.63
Positive
Market Momentum
0.03
Negative
56.13
Neutral
95.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIIAY, the sentiment is Positive. The current price of 5.83 is above the 20-day moving average (MA) of 5.70, above the 50-day MA of 5.68, and above the 200-day MA of 4.63, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 95.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TIIAY.
TIM Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $10.36B | 14.47 | 14.93% | 7.62% | -4.90% | 14.83% | |
77 Outperform | $19.73B | 18.44 | 8.36% | 4.88% | -3.16% | 4.70% | |
75 Outperform | $21.96B | 16.17 | 15.54% | 5.89% | -5.21% | -7.45% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $29.72B | ― | -7.08% | 3.95% | 19.67% | -278.51% | |
55 Neutral | $12.82B | ― | -1.13% | ― | -6.15% | 97.16% | |
45 Neutral | $23.86B | ― | -0.70% | 7.81% | -5.49% | -75.51% |
* Communication Services Sector Average
TIIAY
TIM Group
5.83
3.26
126.85%
TLK
PT Telekomunikasi Indonesia Tbk
21.83
5.66
35.00%
VIV
Telefonica Brasil
12.16
4.26
53.92%
TEF
Telefonica
4.20
-0.08
-1.87%
TIMB
TIM
21.23
9.56
81.92%
VOD
Vodafone
12.47
3.94
46.19%
TIM Group Corporate Events
Telecom Italia S.P.A. Reports Continued Growth in 2025
Nov 7, 2025
Telecom Italia S.P.A., operating under the brand TIM, is a prominent telecommunications company based in Italy, providing a range of services including fixed and mobile telephony, internet, and digital solutions primarily in Italy and Brazil.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.