TIM (TIMB) AI Stock Analysis

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TIM

(NYSE:TIMB)

Rating:79Outperform

Price Target:

$23.50

▲(14.47% Upside)

TIM's strong financial performance and positive earnings call are the most significant factors driving the score. The company's leadership in 5G technology and sustainability, along with robust revenue and profit growth, position it well in the telecommunications industry. While technical indicators suggest the stock is overbought, the overall outlook remains positive.

TIM (TIMB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.94B

Dividend Yield5.81%

Average Volume (3M)446.68K

Price to Earnings (P/E)15.7

Beta (1Y)0.34

Revenue Growth-7.99%

EPS Growth2.16%

CountryUS

Employees8,873

SectorCommunication Services

Sector Strength90

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.36

Shares Outstanding484,160,900

10 Day Avg. Volume409,620

30 Day Avg. Volume446,679

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.18

Enterprise Value/Revenue0.45

Enterprise Value/Gross Profit0.86

Enterprise Value/Ebitda0.85

Forecast

1Y Price Target

$22.92

Price Target Upside11.64% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

TIM Business Overview & Revenue Model

Company DescriptionTIM S.A., a telecommunications company, provides mobile voice and data services, broadband internet access, value-added services, and other telecommunications services and products in Brazil. The company offers services for individuals, as well as corporate solutions for small, medium, and large companies. It also offers fixed-line ultra-broadband and TIM Live services, as well as WTTx technology through Ultrafibra services and IoT solutions. In addition, the company provides digital content and services in its portfolio of packages; sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, and authorized dealers; and offers co-billing services to other telecommunication service providers. As of December 31, 2021, it served a subscriber base of 52.6 million customers. The company is headquartered in Rio de Janeiro, Brazil. TIM S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

How the Company Makes MoneyTIM generates revenue through several key streams: primarily from its mobile and fixed-line telecommunications services, which include voice, SMS, and data plans for consumers and businesses. The company also monetizes its broadband internet services and offers bundled packages that combine multiple services. Additionally, TIM earns revenue from its enterprise solutions, providing businesses with customized communication and IT services. Significant partnerships with technology providers and content creators enhance its offerings, particularly in the realm of digital services and media content. Furthermore, TIM invests in infrastructure development, which allows it to improve service quality and expand its customer base, contributing to its overall revenue growth.

TIM Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: 14.56%|

Next Earnings Date:Nov 03, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, significant progress in 5G and B2B IoT, and leadership in sustainability. However, there are challenges in lease negotiations and competitive pressures in the fixed business. Overall, the positive achievements outweigh the challenges.

Q2-2025 Updates

Positive Updates

Strong Revenue and Profitability Growth

Service revenues grew by 5.4% year-over-year, driven by mobile services. EBITDA increased by 6.5%, with a 49.5% margin.

Leadership in 5G Technology

30% of traffic flows via TIM's 5G network, and the company is #1 in cities with 5G coverage, covering 70% of the urban population.

Sustainability Achievements

TIM was recognized as the most sustainable Brazilian company, topping the B3 Sustainability Index.

Growth in Postpaid Customers

Added 450,000 new postpaid customers in the second quarter, with postpaid services representing nearly 70% of mobile service revenues.

Successful Network Modernization

Completed modernization of half the sites in Sao Paulo, benefiting 250 cities and 10 million people, with improvements in coverage and capacity.

Expansion in B2B IoT and New Revenue Streams

Substantial growth in B2B IoT contracted revenues, with 7,000 kilometers of roads covered in partnership with logistics players.

Operational Efficiency and AI Implementation

Implemented 7 AI projects focused on operational improvements, with 6 new projects scheduled for the second half of 2025.

Negative Updates

Challenges in Lease Negotiations

Struggles with some tower companies in negotiating lease terms, with plans to decommission towers that are above market price.

Competitive Pressures in the Fixed Business

No significant progress in inorganic growth for the fixed business, with continued competitive pressure.

Increase in Network and Interconnection Costs

Rise in costs due to increased international roaming usage and provider costs associated with new portfolio launches.

Company Guidance

In the second quarter of 2025, TIM S.A. reported robust financial and operational performance, with service revenues increasing by 5.1% year-over-year, primarily driven by a 5.6% rise in mobile service revenues. The company achieved an EBITDA growth of 6.5%, resulting in a 49.5% margin, and a notable expansion in operating cash flow. TIM maintained its leadership in 5G technology, with 30% of data traffic now flowing through its 5G network. The company also added over 450,000 new postpaid customers, with postpaid services accounting for nearly 70% of mobile service revenues, reflecting a 12.2% year-over-year growth. Additionally, TIM's network modernization efforts in Sao Paulo improved coverage for approximately 10 million people, enhancing customer experience and operational efficiency. The company expanded its B2B IoT strategy and collaborated with Eletrobras to offer energy savings to corporate clients. TIM also reported advancements in its 5G coverage, now reaching 70% of the urban population, and emphasized its commitment to sustainability, recognized as the most sustainable Brazilian company on the B3 Sustainability Index.

TIM Financial Statement Overview

Summary

TIM's financial performance is strong across all verticals, with notable revenue and profit growth, efficient leverage management, and robust cash flow generation. The company is well-positioned in the telecommunications industry, with a solid financial foundation and growth trajectory.

Income Statement

Very Positive

TIM has demonstrated strong revenue growth with a TTM increase of 1.155% and consistent gross profit margins above 50%. The net profit margin has improved to 13.92% in the TTM, indicating enhanced profitability. EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio is stable at 0.65, indicating a balanced approach to leverage. Return on equity has improved to 14.23% in the TTM, showcasing effective use of equity to generate profits. The equity ratio remains strong, reflecting a solid financial structure.

Cash Flow

Very Positive

Operating cash flow has shown robust growth, supporting a high operating cash flow to net income ratio of 0.91. Free cash flow growth is positive, with a strong free cash flow to net income ratio of 0.67, indicating healthy cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.04B	25.45B	23.83B	21.53B	18.06B	17.27B
Gross Profit	13.65B	13.55B	12.34B	10.87B	9.62B	9.27B
EBITDA	13.71B	12.99B	12.17B	10.16B	9.84B	8.38B
Net Income	3.63B	3.15B	2.84B	1.67B	2.96B	1.83B
Balance Sheet
Total Assets	56.95B	56.33B	55.26B	56.41B	49.82B	41.65B
Cash, Cash Equivalents and Short-Term Investments	5.47B	5.69B	5.04B	4.74B	9.80B	4.65B
Total Debt	16.22B	15.61B	16.03B	17.80B	12.91B	10.72B
Total Liabilities	31.83B	29.92B	29.24B	31.01B	24.71B	18.47B
Stockholders Equity	25.13B	26.40B	26.02B	25.40B	25.11B	23.18B
Cash Flow
Free Cash Flow	8.97B	7.78B	7.92B	4.70B	4.62B	4.78B
Operating Cash Flow	13.47B	12.33B	12.42B	9.43B	9.91B	8.67B
Investing Cash Flow	-5.58B	-4.95B	-4.68B	-8.62B	-6.52B	-5.29B
Financing Cash Flow	-7.00B	-7.20B	-7.21B	-3.49B	-735.37M	-3.09B

TIM Technical Analysis

Technical Analysis Sentiment

Positive

Last Price20.53

Price Trends

50DMA

19.00

Positive

100DMA

17.46

Positive

200DMA

15.02

Positive

Market Momentum

MACD

0.55

Negative

RSI

66.92

Neutral

STOCH

77.72

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIMB, the sentiment is Positive. The current price of 20.53 is above the 20-day moving average (MA) of 19.01, above the 50-day MA of 19.00, and above the 200-day MA of 15.02, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	79 Outperform	$19.69B	19.61	8.20%	3.59%	-6.51%	-0.21%
TIMB	79 Outperform	$9.94B	15.69	13.78%	5.81%	-7.99%	2.16%
TKC	78 Outperform	$5.06B	11.40	7.38%	5.60%	19.25%	5.96%
KT	74 Outperform	$9.67B	15.79	3.81%	3.60%	-1.22%	-19.08%
SKM	68 Neutral	$8.60B	12.03	11.08%	4.43%	-4.74%	-16.23%
TEF	60 Neutral	$31.43B	―	-3.55%	6.42%	-4.73%	-251.31%
Sector *	56 Neutral	HK$67.91B	0.87	-5.00%	5.18%	-0.87%	-12.66%

* Communication Services Sector Average

Performance Comparison

TIMB

TIM

20.53

5.22

34.10%

20.70

6.55

46.29%

SKM

Sk Telecom

22.42

-0.19

-0.84%

VIV

Telefonica Brasil

12.30

3.25

35.91%

TEF

Telefonica

5.58

1.30

30.37%

TKC

Turkcell Iletisim

5.78

-1.48

-20.39%

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.Date of analysis: Aug 09, 2025