TIM Group (TIIAY) AI Stock Analysis

• Market Cap: $13.70B
• Dividend Yield: N/A
• Average Volume (3M): 723.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -6.15%
• EPS Growth: 97.16%
• Country: US
• Employees: 26,282
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 1,532,946,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 723
• PEG Ratio: 0.15
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 12.71
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 5.28
• Enterprise Value/Ebitda: 6.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $6.00 ▲(2.92% Upside)

The overall stock score is primarily influenced by financial performance and valuation concerns. Despite some positive technical indicators, the company's high leverage, negative profitability margins, and poor valuation metrics weigh heavily on the score. The positive sentiment from the earnings call is noted but does not directly impact the score due to its exclusion from the weighted calculation.

Positive Factors

Revenue Growth

The consistent revenue growth in Q3 2025 indicates a strong market position and effective business strategies, supporting long-term stability.

Strategic Partnerships

The partnership with Poste Italiane enhances TIM's digital transformation efforts, positioning it as a leader in Italy's digital market.

Investor Confidence

The successful bond issuance reflects strong investor confidence, providing TIM with favorable financing to support growth initiatives.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile markets, potentially impacting long-term sustainability.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder TIM's ability to reinvest and compete effectively.

Cash Flow Issues

Negative cash flow growth suggests difficulties in generating sufficient cash, which may affect TIM's capacity to fund operations and growth.

TIM Group Business Overview & Revenue Model

Company Description

TIM Group (TIIAY) is a leading telecommunications company based in Italy, primarily engaged in providing a wide range of services including fixed-line and mobile telephony, broadband internet, and digital television. The company operates in several sectors, including consumer and business communications, as well as IT and network solutions. TIM Group is known for its commitment to innovation and digital transformation, offering services that cater to both individual customers and enterprises, enhancing connectivity and digital experiences.

How the Company Makes Money

TIM Group generates revenue through multiple key streams, primarily by offering telecommunications services such as mobile and fixed-line voice services, broadband internet access, and pay-TV subscriptions. The company earns significant income from mobile services, including prepaid and postpaid plans, as well as value-added services like data packages and international calling. Additionally, TIM Group monetizes its infrastructure by leasing network capacity to other operators and providing managed services to businesses. Strategic partnerships with technology providers and content creators also contribute to its revenue, as TIM collaborates to deliver bundled services that increase customer retention and satisfaction.

TIM Group Financial Statement Overview

Summary

TIM Group faces several financial challenges, particularly in profitability and cash flow management. While there is some revenue growth, the company struggles with high leverage and negative profitability margins. The financial health is under pressure, requiring strategic improvements to enhance stability and performance.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 2.72%, indicating some recovery. However, the company struggles with profitability, evidenced by a negative net profit margin of -0.69% and a declining gross profit margin over the years. The EBIT and EBITDA margins have also decreased compared to previous years, reflecting operational challenges.

Balance Sheet

The balance sheet indicates financial leverage concerns, with a high debt-to-equity ratio of 1.13 in the TTM period. The return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, but the high leverage poses potential risks in a volatile market.

Cash Flow

Cash flow analysis reveals significant challenges. The TTM free cash flow growth rate is negative, and the free cash flow to net income ratio is also negative, indicating cash flow issues. The operating cash flow to net income ratio is low, suggesting difficulties in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.36B	14.44B	16.30B	15.79B	15.32B	15.80B
Gross Profit	4.95B	6.73B	8.08B	9.13B	9.25B	10.13B
EBITDA	3.76B	4.80B	5.71B	5.51B	1.16B	7.25B
Net Income	-206.12M	-610.00M	-1.44B	-2.92B	-8.65B	7.22B
Balance Sheet
Total Assets	43.11B	37.66B	62.16B	62.03B	69.19B	73.23B
Cash, Cash Equivalents and Short-Term Investments	2.08B	4.46B	4.97B	5.00B	9.15B	5.92B
Total Debt	17.21B	14.72B	32.64B	31.19B	32.10B	29.95B
Total Liabilities	27.48B	24.30B	44.65B	43.30B	47.15B	44.39B
Stockholders Equity	14.03B	11.96B	13.65B	15.06B	17.41B	26.21B
Cash Flow
Free Cash Flow	78.92M	402.00M	-25.00M	-1.41B	323.00M	1.85B
Operating Cash Flow	2.57B	3.25B	3.94B	4.89B	4.34B	6.55B
Investing Cash Flow	-1.24B	4.94B	-4.15B	-5.33B	-5.12B	-3.08B
Financing Cash Flow	-1.43B	-7.41B	-456.00M	-2.87B	3.16B	-2.01B

TIM Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.83, above the 50-day MA of 5.79, and above the 200-day MA of 4.84, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 100.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	81 Outperform	$9.26B	13.82	14.93%	7.82%	-4.90%	14.83%
VIV	77 Outperform	$19.15B	18.03	8.36%	5.03%	-3.16%	4.70%
TLK	75 Outperform	$20.44B	15.71	15.54%	6.14%	-5.21%	-7.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	58 Neutral	$30.95B	-7.16	-7.08%	3.77%	19.67%	-278.51%
TIIAY	48 Neutral	$13.70B	-511.51	-1.13%	―	-6.15%	97.16%
TEF	45 Neutral	$22.90B	-10.30	-0.70%	7.47%	-5.49%	-75.51%

TIM Group Corporate Events

Telecom Italia S.P.A. Reports Continued Growth in 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.