Education
About Us
Working with TipRanks
Follow Us
TIM Group (TIIAY)
OTHER OTC:TIIAY
Top Page
TIM Group
(OTC:TIIAY)
Select Model
Select Model
Rating:48Neutral
Price Target:
$6.50
▲(11.49% Upside)
Action:ReiteratedDate:12/18/25
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
Confirmed Revenue & Service Growth
Management's guidance of mid-single-digit revenue and 3% service revenue growth implies durable top-line momentum driven by core connectivity services. Sustained revenue growth supports network investment, predictable cash flows, and gradual margin recovery over the medium term.
Strong Access to Capital
A heavily subscribed bond with historically low spread signals investor confidence and lowers funding costs. Improved debt market access provides flexibility to refinance, fund capex and digital initiatives, and execute deleveraging without severe near-term liquidity strain.
Leading Brazil Operations & 5G
Market leadership and expanding 5G footprint in Brazil underpin a durable growth engine outside Italy. A strong Brazilian business diversifies revenue, enhances cash generation potential, and offers higher long-term upside from data monetization and enterprise services.
Negative Factors
High Financial Leverage
Elevated leverage increases interest costs and reduces financial flexibility, constraining the company's ability to fund capex or weather shocks. Sustained high leverage can impede strategic initiatives and necessitate asset sales or higher-cost refinancing over the medium term.
Weak Cash Flow Conversion
Negative FCF growth and poor conversion of earnings into cash limit internal funding for capex, network upgrades, and debt reduction. Persistent cash conversion weakness raises refinancing risk and may force reliance on external funding or asset disposals.
Negative Profitability Margins
A negative net margin and eroding gross margins signal structural profitability issues that impair return on capital. Without sustained margin improvement from pricing, cost control, or higher-value services, long-term shareholder returns and reinvestment capacity remain constrained.
TIM Group (TIIAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.60B
Dividend YieldN/A
Average Volume (3M)723.00
Price to Earnings (P/E)102.4
Beta (1Y)0.38
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 Cap1.65
Enterprise Value/Revenue1.86
Enterprise Value/Gross Profit5.26
Enterprise Value/Ebitda7.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.25
Revenue Forecast (FY)$16.60B
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 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 25, 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 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.45
Neutral
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.40
Negative
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.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.78B | 14.44B | 16.30B | 15.79B | 15.32B | 15.80B |
| Gross Profit | 4.88B | 6.73B | 8.08B | 9.13B | 9.25B | 10.13B |
| EBITDA | 3.55B | 4.80B | 5.71B | 5.51B | 1.16B | 7.25B |
| Net Income | -210.05M | -610.00M | -1.44B | -2.92B | -8.65B | 7.22B |
Balance Sheet | ||||||
| Total Assets | 36.81B | 37.66B | 62.16B | 62.03B | 69.19B | 73.23B |
| Cash, Cash Equivalents and Short-Term Investments | 1.77B | 4.46B | 4.97B | 5.00B | 9.15B | 5.92B |
| Total Debt | 14.69B | 14.72B | 32.64B | 31.19B | 32.10B | 29.95B |
| Total Liabilities | 23.46B | 24.30B | 44.65B | 43.30B | 47.15B | 44.39B |
| Stockholders Equity | 11.98B | 11.96B | 13.65B | 15.06B | 17.41B | 26.21B |
Cash Flow | ||||||
| Free Cash Flow | 57.51M | 402.00M | -25.00M | -1.41B | 323.00M | 1.85B |
| Operating Cash Flow | 2.48B | 3.25B | 3.94B | 4.89B | 4.34B | 6.55B |
| Investing Cash Flow | -1.17B | 4.94B | -4.15B | -5.33B | -5.12B | -3.08B |
| Financing Cash Flow | -1.47B | -7.41B | -456.00M | -2.87B | 3.16B | -2.01B |
TIM Group Technical Analysis
Positive
5.83
Price Trends
6.83
Positive
6.29
Positive
5.59
Positive
Market Momentum
0.11
Positive
42.99
Neutral
3.61
Positive
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 below the 20-day moving average (MA) of 7.42, below the 50-day MA of 6.83, and above the 200-day MA of 5.59, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 42.99 is Neutral, neither overbought nor oversold. The STOCH value of 3.61 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $19.09B | 16.17 | 15.54% | 6.14% | -5.21% | -7.45% | |
73 Outperform | $12.16B | 11.93 | 17.96% | 7.82% | -4.90% | 14.83% | |
70 Outperform | $25.50B | 17.32 | 9.34% | 5.03% | -3.16% | 4.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $34.28B | 7.35 | -7.08% | 3.77% | 19.67% | -278.51% | |
48 Neutral | $15.60B | 102.42 | -1.13% | ― | -6.15% | 97.16% |
* Communication Services Sector Average
TIIAY
TIM Group
6.97
4.10
143.04%
TLK
PT Telekomunikasi Indonesia Tbk
19.52
5.22
36.47%
VIV
Telefonica Brasil
15.89
7.70
93.95%
TIMB
TIM
25.56
12.88
101.51%
VOD
Vodafone
14.62
6.00
69.64%
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.