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TIM Group (TIIAY)
:TIIAY
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TIM Group
(OTC:TIIAY)
Rating:66Neutral
Price Target:
$5.00
▲(1.83%Upside)
TIM Group (TIIAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.71B
Dividend YieldN/A
Average Volume (3M)709.00
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth-16.62%
EPS Growth87.40%
CountryUS
Employees26,282
SectorCommunication Services
Sector Strength81
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding1,532,946,700
10 Day Avg. Volume2,127
30 Day Avg. Volume709
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio9.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside1.83% Upside
Rating ConsensusHold
Number of Analyst Covering1
TIM Group Business Overview & Revenue Model
Company DescriptionTIM Group, also known as Telecom Italia S.p.A., is a leading telecommunications company based in Italy. The company operates in several sectors including fixed-line and mobile telecommunications, internet services, and digital solutions. Its core products and services encompass mobile and fixed telephony services, broadband internet, and cloud computing solutions. TIM Group serves both individual consumers and business clients, offering a wide range of communication and connectivity solutions to meet diverse customer needs.
How the Company Makes MoneyTIM Group generates revenue primarily through its telecommunications services. The company's key revenue streams include subscription fees from mobile and fixed-line telephony services, broadband internet services, and digital solutions such as cloud computing and IT services. TIM Group also earns money from its wholesale operations, providing infrastructure and network services to other telecom operators. Significant partnerships with technology providers and collaborations in digital innovation further contribute to its earnings by enhancing service offerings and expanding market reach.
TIM Group Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 21.23%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong shareholder support from Poste Italiane and solid growth in enterprise and international operations. However, challenges remain in achieving domestic EBITDA growth targets and managing energy costs without government support, contributing to a balanced sentiment.Q1-2025 Updates
Positive Updates
Poste Italiane Becomes Largest Shareholder
Poste Italiane agreed to acquire a 15% stake from Vivendi, resulting in Poste holding 24.8% of ordinary shares. This marks a step towards improved governance and industrial stability.
Revenue and EBITDA Growth
Group revenues increased by 2.7%, and EBITDA after lease grew by 5.4% year-on-year. This growth is supported by a stable consumer market and high single-digit growth in the Enterprise division.
Strong Performance in TIM Enterprise
TIM Enterprise reported mid-single-digit revenue growth with cloud services contributing significantly, showing a 24% increase in service revenue.
TIM Brasil's Solid Performance
TIM Brasil showed mid-single-digit top-line growth, driven by mobile service revenue, with a strong focus on customer base monetization and operational efficiency.
Cost and Debt Management
The company extended its revolving credit facility to 2030, reduced its size from EUR 4 billion to EUR 3 billion, and maintained a low leverage ratio of 2.05x.
Negative Updates
Negative Equity Free Cash Flow
Equity free cash flow was negative by EUR 0.2 billion, attributed to seasonal working capital absorption and extraordinary working capital effects.
Domestic EBITDA Guidance
Domestic EBITDA growth for Q1 came in below the full-year guidance, necessitating stronger performance in subsequent quarters to meet targets.
Potential Delays in Government Support
The company does not expect significant government support for energy costs in 2025, impacting potential earnouts related to energy cost assistance.
Challenges in Network Infrastructure Sharing
The company is exploring network sharing opportunities with other operators, but this remains a complex and unresolved area.
Company Guidance
In the call, TIM provided guidance on several key metrics for the first quarter of 2025. The company reported a group revenue increase of 2.7%, with EBITDA after lease rising by 5.4%. CapEx was reported at EUR 0.5 billion, accounting for 14% of revenues, while EBITDA after lease minus CapEx rose by 24% to EUR 0.4 billion. Despite the usual seasonality affecting working capital, equity free cash flow was negative EUR 0.2 billion, a significant improvement from the previous year's negative EUR 1 billion. On the domestic front, revenues increased by 1.6%, with EBITDA after lease up by 4%. The company's net debt after lease stood at EUR 7.5 billion with a leverage ratio of 2.05x, slightly up from EUR 7.3 billion in December. TIM also highlighted strategic developments, including Poste Italiane's acquisition of a 15% stake from Vivendi, making Poste TIM's largest shareholder, and ongoing negotiations to grant Poste Mobile access to TIM's network, expected to commence in Q1 2026.TIM Group Financial Statement Overview
Summary
TIM Group faces significant financial challenges with declining revenues and profitability issues, although there are signs of cash flow improvement. The high leverage and negative returns on equity present potential risks, and strategic adjustments may be necessary.Income Statement
TIM Group's income statement reveals a challenging financial trajectory with declining revenue and negative net income in recent years. The revenue dropped by 11.4% from 2023 to 2024, indicating a downward trend. The gross profit margin for 2024 is 46.6%, signaling some cost control, but the negative net profit margin of -4.2% highlights profitability issues. Despite a positive EBIT margin of 10.7%, the company's overall profitability remains a concern.55
Neutral
Balance Sheet
The balance sheet shows a moderate financial position with a debt-to-equity ratio of 1.23, which is relatively high but typical for the telecommunications industry. The equity ratio stands at 31.8%, suggesting a balanced asset financing approach. However, the negative return on equity of -5.1% reflects operational challenges and insufficient returns to shareholders.60
Neutral
Cash Flow
Cash flow analysis indicates some improvement in free cash flow, which grew from a deficit in 2023 to a positive $402 million in 2024. The operating cash flow to net income ratio is negative, reflecting ongoing profitability challenges. However, the free cash flow to net income ratio is positive, suggesting the company is managing to generate cash despite net losses.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.79B | 14.44B | 16.30B | 15.79B | 15.32B | 15.80B |
| Gross Profit | 5.86B | 6.73B | 8.08B | 9.13B | 9.25B | 10.13B |
| EBITDA | 4.26B | 4.80B | 5.71B | 5.51B | 1.16B | 7.25B |
| Net Income | -334.00M | -610.00M | -1.44B | -2.92B | -8.65B | 7.22B |
Balance Sheet | ||||||
| Total Assets | 37.95B | 37.66B | 62.16B | 62.03B | 69.19B | 73.23B |
| Cash, Cash Equivalents and Short-Term Investments | 3.79B | 4.46B | 4.97B | 5.00B | 9.15B | 5.92B |
| Total Debt | 15.20B | 14.72B | 31.55B | 31.19B | 32.10B | 29.95B |
| Total Liabilities | 24.63B | 24.30B | 44.65B | 43.30B | 47.15B | 44.39B |
| Stockholders Equity | 11.97B | 11.96B | 13.65B | 15.06B | 17.41B | 26.21B |
Cash Flow | ||||||
| Free Cash Flow | 927.00M | 402.00M | -25.00M | -1.41B | 323.00M | 1.85B |
| Operating Cash Flow | 3.20B | 3.25B | 3.94B | 4.89B | 4.34B | 6.55B |
| Investing Cash Flow | 5.45B | 4.94B | -4.15B | -5.33B | -5.12B | -3.08B |
| Financing Cash Flow | -6.32B | -7.41B | -456.00M | -2.87B | 3.16B | -2.01B |
TIM Group Technical Analysis
Positive
4.91
Price Trends
4.41
Positive
3.81
Positive
3.23
Positive
Market Momentum
0.15
Positive
58.88
Neutral
55.66
Neutral
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 4.91 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.41, and above the 200-day MA of 3.23, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 55.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TIIAY.
TIM Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.42B | 15.30 | 13.18% | 0.44% | -6.63% | 2.46% | |
71 Outperform | $9.95B | 22.81 | 3.81% | 2.95% | -4.85% | -43.88% | |
69 Neutral | $8.49B | 9.57 | 11.08% | 4.71% | -4.13% | 4.96% | |
66 Neutral | $10.71B | ― | 1.08% | ― | -16.62% | 87.40% | |
62 Neutral | $40.76B | -1.15 | -12.05% | 3.90% | 2.03% | -69.70% | |
55 Neutral | $3.87B | 18.36 | 3.99% | ― | -12.77% | 40.80% | |
48 Neutral | $9.15B | ― | -7.64% | ― | 3.69% | -1514.85% |
* Communication Services Sector Average
Performance Comparison
TIIAY
TIM Group
4.74
2.13
81.61%
KT
KT
21.23
8.07
61.32%
SKM
Sk Telecom
22.30
1.21
5.74%
TEO
Telecom Argentina
8.47
1.74
25.85%
TIMB
TIM
18.99
4.93
35.06%
FYBR
Frontier Communications Parent
36.78
8.76
31.26%
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.