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TIM
(NYSE:TIMB)
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Rating:70Outperform
Price Target:
$21.00
▲(0.57% Upside)
Action:Reiterated
Date:07/30/26
Overall score is driven primarily by solid financial performance (profitability and strong free cash flow) and supportive valuation (low P/E and high dividend yield). This is tempered by weak technical positioning (trading below major moving averages) and execution/leverage watch-items from the latest earnings call (mobile churn/competition, bad-debt volatility, and debt increase related to I-Systems).
Positive Factors
Cash Generation
Robust operating and free cash flow provide durable internal funding for network investments, shareholder distributions and debt reduction. Sustained cash generation increases strategic optionality to self-fund capex, support subsidiary capital injections and absorb integration costs without relying heavily on external financing.
Negative Factors
Mobile Base Contraction
Shrinking mobile subscribers and elevated churn erode one of TIM's largest revenue pools and increase acquisition costs to regain share. Persisting contraction can compress scale economics in mobile, weaken cross-sell into fiber/content and force margin-sacrificing promotions to defend share over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Robust operating and free cash flow provide durable internal funding for network investments, shareholder distributions and debt reduction. Sustained cash generation increases strategic optionality to self-fund capex, support subsidiary capital injections and absorb integration costs without relying heavily on external financing.
Read all positive factors
TIM (TIMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.16B
Dividend Yield7.12%
Average Volume (3M)396.54K
Price to Earnings (P/E)10.8
Beta (1Y)0.19
Revenue Growth13.99%
EPS Growth29.93%
CountryUS
Employees8,873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.05
Shares Outstanding478,425,170
10 Day Avg. Volume538,610
30 Day Avg. Volume396,539
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)2.14
Price to Sales (P/S)1.93
P/FCF Ratio5.78
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$25.73Price Target Upside23.20% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.78
Revenue Forecast (FY)$5.41B
TIM Business Overview & Revenue Model
Company Description
TIM S.A. is a prominent telecommunications provider in Brazil, delivering an extensive portfolio of services. Its core operations include mobile voice and data communication, high-speed broadband internet access, and various supplementary telecomm...
How the Company Makes Money
TIMB primarily makes money through the sale of home-improvement and construction products to retail customers and professional buyers. Its core revenue stream is merchandise sales generated in-store and via e-commerce/digital channels (where avail...
TIM Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented multiple encouraging operational and financial indicators — revenue growth, margin expansion, strong cash generation, platform and B2B momentum, successful product launches and AI-driven efficiency gains — while acknowledging near-term execution challenges: mobile base contraction, churn and competitive promotional pressures, bad-debt volatility and integration costs from recent acquisitions. Management provided mitigation plans (new commercial offers, CapEx optimization, asset monetization, AI initiatives) and reiterated confidence in absorbing I-Systems CapEx and supporting dividend policy. Overall, positive fundamental trends and clear strategic actions outweigh the near-term operational headwinds.Positive Updates
Revenue Near BRL 4 Billion and Service Revenue Growth
Total revenue approaching BRL 4 billion in the quarter; service revenue increased around 6% in the first half, reflecting broader contribution across business lines.
Negative Updates
Mobile Base Contraction and Market Share Pressure
Mobile subscriber base contracted this quarter and market share fell; net additions were weaker due to softer gross adds and elevated churn following price increases in Q1 and Q2.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Near BRL 4 Billion and Service Revenue Growth
Total revenue approaching BRL 4 billion in the quarter; service revenue increased around 6% in the first half, reflecting broader contribution across business lines.
Read all positive updates
Company Guidance
Management reiterated that they will preserve existing CapEx guidance despite the I‑Systems acquisition (no material incremental CapEx; I‑Systems to be monetized and a capital increase announced to address its debt) and that they have sufficient cash to fund declared CapEx and shareholder distributions; they pointed to quarter and H1 metrics including revenue approaching BRL4.0 billion, service revenues +≈6% in H1, EBITDA +≈7% in H1 (EBITDA after leases ≈+8%), net income >BRL1.0 billion in the quarter (+≈6% YoY), operating cash flow >BRL3.0 billion in H1 (double‑digit growth), mobile service revenue growth mid‑single digit (~4.7%) with postpaid ≈70% of mobile service revenue, B2B ≈7% of service revenues, platform revenues more than doubled in Q2, and AI engaging >2 million customers to lift collections; they also expect bad‑debt to plateau, roaming costs to normalize seasonally, churn to have improved in June versus April, and plan to drive broadband and convergence growth organically and through selective M&A.TIM Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.40B | 26.62B | 25.45B | 23.83B | 21.53B | 18.06B |
| Gross Profit | 14.95B | 14.36B | 13.55B | 12.34B | 10.87B | 9.62B |
| EBITDA | 14.62B | 11.07B | 12.99B | 12.41B | 10.79B | 10.25B |
| Net Income | 4.33B | 4.31B | 3.15B | 2.84B | 1.67B | 2.96B |
Balance Sheet | ||||||
| Total Assets | 57.19B | 56.94B | 56.33B | 55.26B | 56.41B | 49.82B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 5.88B | 5.69B | 5.04B | 4.74B | 9.80B |
| Total Debt | 16.50B | 28.59B | 15.61B | 16.03B | 17.80B | 12.91B |
| Total Liabilities | 32.17B | 32.96B | 29.92B | 29.24B | 31.01B | 24.71B |
| Stockholders Equity | 25.02B | 23.98B | 26.40B | 26.02B | 25.40B | 25.11B |
Cash Flow | ||||||
| Free Cash Flow | 9.15B | 8.90B | 7.78B | 7.92B | 4.43B | 4.62B |
| Operating Cash Flow | 13.75B | 13.44B | 12.33B | 12.42B | 9.16B | 9.91B |
| Investing Cash Flow | -4.06B | -3.56B | -4.95B | -4.68B | -8.35B | -6.52B |
| Financing Cash Flow | -10.01B | -9.53B | -7.20B | -7.21B | -3.49B | -735.37M |
TIM Technical Analysis
Negative
20.88
Price Trends
21.43
Negative
23.31
Negative
22.86
Negative
Market Momentum
-0.83
Positive
23.41
Positive
4.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIMB, the sentiment is Negative. The current price of 20.88 is below the 20-day moving average (MA) of 21.05, below the 50-day MA of 21.43, and below the 200-day MA of 22.86, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 23.41 is Positive, neither overbought nor oversold. The STOCH value of 4.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TIMB.
TIM Risk Analysis
TIM disclosed 40 risk factors in its most recent earnings report. TIM reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TIM Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $20.67B | 15.84 | 9.70% | 5.69% | 16.10% | 24.13% | |
71 Outperform | $14.49B | 15.18 | 11.99% | 8.52% | -3.37% | -27.49% | |
70 Outperform | $9.16B | 10.79 | 17.54% | 6.52% | 13.99% | 29.93% | |
62 Neutral | $12.03B | 54.50 | 3.00% | 1.78% | -7.08% | -73.85% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TIMB
TIM
18.27
-0.38
-2.04%
TLK
PT Telekomunikasi Indonesia Tbk
14.80
-2.13
-12.61%
SKM
Sk Telecom
34.88
12.55
56.20%
VIV
Telefonica Brasil
12.20
0.88
7.76%
TIM Corporate Events
TIM S.A. Board Approves Up to R$670 Million Capitalization for Key Subsidiaries
Jul 29, 2026
On July 27, 2026, TIM S.A.’s board of directors met at the company’s Rio de Janeiro headquarters, receiving reports from its ESG, Control and Risks, and Statutory Audit committees on recent activities and oversight. The board also took...
TIM S.A. Fiscal Council Clears Q2 2026 Financials After EY Review
Jul 28, 2026
On July 27, 2026, TIM S.A.’s Fiscal Council met at the company’s Rio de Janeiro head office, in a joint session with the Statutory Audit Committee, to review tax, regulatory, civil and labor contingencies and examine the company’...
TIM S.A. Injects R$670 Million into Subsidiaries to Optimize Capital Structure
Jul 28, 2026
On July 27, 2026, TIM S.A.’s board approved capital contributions of up to R$600 million to its infrastructure arm I-Systems and up to R$70 million to V8 Consulting, both wholly owned subsidiaries. The injections, funded entirely from TIM...
TIM S.A. Posts Strong 1H26 Revenue Growth and Pushes Convergent, B2B and AI Strategies
Jul 28, 2026
In the first half of 2026, TIM delivered solid operational and financial performance, with service revenue up 6.1% year on year, driven by 5.1% growth in mobile and 24.9% growth in fixed services, while EBITDA-AL rose 7.8% and operating cash flow ...
TIM S.A. Delivers Strong 2Q26 Results and Injects R$670 Million into Key Subsidiaries
Jul 28, 2026
TIM S.A. reported solid second-quarter 2026 results, with net revenue rising 5.5% year on year to R$6.97 billion and service revenue up 5.7%, driven by strong mobile and a 27% jump in fixed-line revenue, particularly TIM Ultrafibra and B2B service...
TIM S.A. Files Mid-2026 Quarterly Financials Highlighting Stable Balance Sheet
Jul 28, 2026
TIM S.A. reported its individual and consolidated quarterly information for the period ended June 30, 2026, as furnished to the U.S. Securities and Exchange Commission on July 27, 2026. The filing includes balance sheets, income statements, cash f...
TIM S.A. Confirms Stable Control Structure in July 10 SEC Filing
Jul 10, 2026
On July 10, 2026, TIM S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission detailing its consolidated information on director and related-party transactions in the company’s shares. The filing outlines holdings and movement...
TIM S.A. Fiscal Council Backs R$400 Million Interest on Equity Distribution
Jun 18, 2026
On June 17, 2026, TIM S.A.’s Fiscal Council met at the company’s Rio de Janeiro headquarters, in a joint session with the Statutory Audit Committee, to evaluate management’s proposal for distributing interest on shareholders̵...
TIM S.A. Board Approves R$400 Million Shareholder Distribution and Governance Changes
Jun 18, 2026
On June 17, 2026, TIM S.A.’s board of directors met in Rio de Janeiro to review governance and risk matters, including reports from the Control and Risks Committee and the Statutory Audit Committee. The board noted progress in the company...
TIM S.A. Names Luciene Pandolfo Chief Legal Officer
Jun 18, 2026
On June 17, 2026, TIM S.A.’s board of directors elected Brazilian lawyer Luciene Pandolfo as the company’s new Chief Legal Officer, formalizing a leadership change first signaled in a market notice on March 31, 2026. The appointment br...
TIM S.A. Announces R$400 Million Interest on Shareholders’ Equity Distribution
Jun 18, 2026
On June 17, 2026, TIM S.A.’s board of directors approved the distribution of R$400 million as interest on shareholders’ equity, equivalent to an estimated R$0.1674573219 per share. The move underscores the company’s ongoing cash&...
TIM S.A. Has Fitch ‘AAA (bra)’ Rating Affirmed With Stable Outlook
Jun 16, 2026
TIM S.A. announced that on June 15, 2026, Fitch Ratings affirmed the company’s National Long-Term Rating at ‘AAA (bra)’ with a Stable Outlook. The confirmation of the top domestic rating underscores the company’s solid cred...
TIM S.A. Details Insider and Controlling Shareholder Stakes in June 10 Form 6-K
Jun 10, 2026
On June 10, 2026, TIM S.A. filed a Form 6-K in the United States detailing consolidated information on securities and derivative positions held by its board, executive management, fiscal council, technical bodies, controlling shareholder, and rela...
TIM S.A. Reports Insider and Related-Party Shareholdings in May 8 Form 6-K Filing
May 8, 2026
On May 8, 2026, TIM S.A. filed a Form 6-K in the U.S. reporting detailed information on securities holdings and transactions involving its board of directors, executive management, fiscal council, technical or advisory bodies, controlling sharehol...
TIM S.A. Triggers Interest Step-Down After Hitting Eco-Efficiency Target on Debentures
May 8, 2026
On May 8, 2026, TIM S.A. announced that it has achieved the eco-efficiency target defined in its second issuance of simple, non-convertible, unsecured debentures, which required an increase of at least 80% in data traffic eco-efficiency (bit/joule...
TIM S.A. Completes R$947 Million Purchase of Remaining I-Systems Stake
May 7, 2026
TIM S.A. has finalized the acquisition of the remaining 51% stake in infrastructure firm I-Systems Soluções de Infraestrutura S.A., completing the deal on May 6, 2026 after all conditions precedent were met. With the R$947 million purcha...
TIM S.A. Board Tightens Governance and Advances Long-Term Incentives at May 5 Meeting
May 6, 2026
On May 5, 2026, TIM S.A.’s board of directors met in Rio de Janeiro to review committee activities, approve governance updates, and oversee financial reporting for the first quarter of 2026. The board acknowledged reports from its compensati...
TIM S.A. Marks 18th Consecutive Year in Brazil’s ISE Sustainability Index
May 6, 2026
TIM S.A., a Brazilian telecommunications operator listed in São Paulo and New York, has reinforced its profile as a sustainability-focused carrier by maintaining a long-standing presence in responsible investment benchmarks. The group emphasi...
TIM S.A. Fiscal Council Backs Q1 2026 Results and Elects New Chairman
May 6, 2026
On May 5, 2026, TIM S.A.’s Fiscal Council met in Rio de Janeiro to review tax, regulatory, civil, and labor contingencies, examine the company’s quarterly information report for the period ended March 31, 2026, and hear the related pre...
TIM S.A. Posts Strong Q1 2026 Growth as Mobile, Fiber and Digital Partnerships Deepen
May 6, 2026
In the first quarter of 2026, TIM S.A. reported solid growth in total net revenue, driven mainly by mobile and fiber broadband services, with mobile service revenue supported by a strong postpaid segment and four consecutive quarters of positive n...
TIM S.A. Lifts Q1 2026 Revenues and Bets on AI, Fiber and PicPay to Drive Next Growth Phase
May 6, 2026
TIM S.A. reported first-quarter 2026 results showing net revenue of R$6.81 billion, up 6.5% year-on-year, with service revenue growing at the same pace and EBITDA-AL rising 7.8%, reflecting strong postpaid mobile and Ultrafibra fixed broadband per...
TIM S.A. Files First-Quarter 2026 Financials Showing Stable Balance Sheet
May 6, 2026
TIM S.A. reported its individual and consolidated quarterly financial position as of March 31, 2026, showing total consolidated assets of about BRL 57.8 billion, slightly up from year-end 2025. Current assets reached roughly BRL 14.1 billion, supp...
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.