TIM (TIMB)
NYSE:TIMB
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TIM
(NYSE:TIMB)
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Rating:73Outperform
Price Target:
$30.00
▲(7.30% Upside)
Action:ReiteratedDate:02/13/26
The score is driven primarily by solid underlying financial performance (strong margins and improving earnings) but tempered by weaker 2025 cash conversion and a mildly weaker balance-sheet trend. Valuation is supported by a very high dividend yield with a moderate P/E, while technicals show an uptrend but are overbought. Earnings-call commentary was constructive on delivery and cash flow, with notable near-term cost and segment headwinds.
Positive Factors
Strong profitability and margin profile
High and sustained margins (~54% gross, ~25% EBIT) with improving net income indicate structural cost discipline and operating leverage. This profitability supports durable cash generation, funds reinvestment and shareholder returns, and provides resilience against cyclical revenue swings.
Negative Factors
Weaker cash conversion in 2025
Despite solid absolute cash flow, op‑cash covered less than net income and FCF contracted sharply in 2025. Weaker cash conversion reduces financial flexibility to fund capex, acquisitions or maintain high payout ratios during adverse cycles and increases sensitivity to future cash volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margin profile
High and sustained margins (~54% gross, ~25% EBIT) with improving net income indicate structural cost discipline and operating leverage. This profitability supports durable cash generation, funds reinvestment and shareholder returns, and provides resilience against cyclical revenue swings.
Read all positive factors
TIM (TIMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.36B
Dividend Yield7.82%
Average Volume (3M)417.80K
Price to Earnings (P/E)11.9
Beta (1Y)0.38
Revenue Growth-4.90%
EPS Growth14.83%
CountryUS
Employees8,873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.54
Shares Outstanding478,425,170
10 Day Avg. Volume449,885
30 Day Avg. Volume417,797
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 Cap7.13
Enterprise Value/Revenue3.58
Enterprise Value/Gross Profit6.64
Enterprise Value/Ebitda6.99
Forecast
1Y Price Target
$27.50Price Target Upside-1.65% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)1.85
Revenue Forecast (FY)$5.33B
TIM Business Overview & Revenue Model
Company Description
TIM 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...
How the Company Makes Money
TIM generates revenue primarily through its telecom services, which include mobile subscriptions, fixed-line services, and broadband internet access. The company charges customers monthly fees for various mobile plans, ranging from prepaid to post...
TIM Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear wins: above-inflation service revenue growth, strong EBITDA and margin expansion, double-digit operating cash flow growth, leading 5G coverage and network awards, recovery in fixed broadband and meaningful scale in B2B. These positives were balanced against a handful of operational and timing challenges — an accelerated prepaid revenue decline (albeit stabilizing), some Q4 one-offs that boost reported metrics, rising content and network costs tied to 5G expansion, portability/churn risks near-term, and outstanding longer-term tax reform uncertainty. On balance the company delivered its guidance, sustained disciplined capital allocation, and outlined concrete remediation actions (I-Systems acquisition, efficiency program, tower negotiations), so the overall tone is constructive and confident.Positive Updates
Service Revenue Growth Above Inflation
Service revenue grew 5.2% year-on-year, outpacing inflation and reflecting solid top-line performance across the business.
Negative Updates
Prepaid Revenue Decline
Prepaid revenue decline accelerated for the third consecutive quarter (no absolute percentage disclosed). Management indicated stabilization actions (targeted offers, segmentation, improved CX) are beginning to show traction but the segment remains a weakness.
Read all updates
Q4-2025 Updates
Positive
Negative
Service Revenue Growth Above Inflation
Service revenue grew 5.2% year-on-year, outpacing inflation and reflecting solid top-line performance across the business.
Read all positive updates
Company Guidance
Management said it delivered 2025 guidance and expects to continue disciplined execution into 2026, highlighting many concrete metrics: service revenue +5.2% YoY, mobile services +5.4%, EBITDA +7.5% with a 51% margin (EBITDA after lease +8.3%), OpEx up just 1.8% YoY, operating cash flow +15.7% YoY with a 22.7% OpCF margin, and CapEx essentially flat vs. 2024 (guidance maintained). Shareholder returns totaled BRL 4.0 billion in dividends plus BRL 0.75 billion in buybacks (139% payout), return on capital exceeded consensus cost of capital, and management reiterated that tax reform has no impact in 2026 and is expected to be neutral on free cash flow in 2027. Operational targets include >1,000‑city 5G coverage, swapping ~6,500 sites by 2027, TIM Ultrafibra at ~850,000 customers with FTTH ARPU ≈ BRL 95 and Q4 Ultrafibra revenue +6.2% YoY, postpaid Q4 revenue +9.5%, base +8.4% and postpaid ARPU ≈ BRL 55 (+3.1% YoY), B2B contracted value >BRL 1 billion, and a lease-cost trajectory capped at inflation and growing slower than revenues.TIM Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.62B | 25.45B | 23.83B | 21.53B | 18.06B |
| Gross Profit | 14.36B | 13.55B | 12.34B | 10.87B | 9.62B |
| EBITDA | 11.07B | 12.99B | 12.41B | 10.79B | 10.25B |
| Net Income | 4.31B | 3.15B | 2.84B | 1.67B | 2.96B |
Balance Sheet | |||||
| Total Assets | 56.94B | 56.33B | 55.26B | 56.41B | 49.82B |
| Cash, Cash Equivalents and Short-Term Investments | 5.88B | 5.69B | 5.04B | 4.74B | 9.80B |
| Total Debt | 28.59B | 15.61B | 16.03B | 17.80B | 12.91B |
| Total Liabilities | 32.96B | 29.92B | 29.24B | 31.01B | 24.71B |
| Stockholders Equity | 23.98B | 26.40B | 26.02B | 25.40B | 25.11B |
Cash Flow | |||||
| Free Cash Flow | 8.90B | 7.78B | 7.92B | 4.43B | 4.62B |
| Operating Cash Flow | 13.44B | 12.33B | 12.42B | 9.16B | 9.91B |
| Investing Cash Flow | -3.56B | -4.95B | -4.68B | -8.35B | -6.52B |
| Financing Cash Flow | -9.53B | -7.20B | -7.21B | -3.49B | -735.37M |
TIM Technical Analysis
Positive
27.96
Price Trends
25.73
Positive
23.40
Positive
21.62
Positive
Market Momentum
0.50
Negative
65.83
Neutral
89.87
Negative
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 27.96 is above the 20-day moving average (MA) of 25.93, above the 50-day MA of 25.73, and above the 200-day MA of 21.62, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.87 is Negative, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.56B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
73 Outperform | $13.36B | 11.93 | 17.46% | 7.82% | -4.90% | 14.83% | |
70 Outperform | $27.57B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $13.17B | 27.39 | 3.37% | 5.02% | -8.16% | -52.52% |
* Communication Services Sector Average
TIMB
TIM
27.96
13.89
98.75%
TLK
PT Telekomunikasi Indonesia Tbk
18.78
4.98
36.06%
SKM
Sk Telecom
36.41
14.39
65.35%
VIV
Telefonica Brasil
17.14
8.71
103.39%
TIM Corporate Events
TIM S.A. Fiscal Council Backs 2025 Accounts and Robust R$4 Billion Payout
Feb 11, 2026
On February 10, 2026, TIM S.A.’s Fiscal Council met in Rio de Janeiro to review the company’s performance and governance for the fiscal year ended December 31, 2025. The council examined tax, regulatory, civil and labor contingencies a...
TIM S.A. Delivers 2025 Growth, Extends 5G Leadership and B2B Expansion
Feb 11, 2026
TIM S.A. reported its 2025 results on February 10, 2026, highlighting net service revenue growth of 5.2% year-on-year and normalized EBITDA up 7.5%, with EBITDA margin rising to 51.0% amid disciplined cost control and lease-intensity reduction. Mo...
TIM S.A. Delivers Record 2025 Earnings and Completes V8 Tech Acquisition
Feb 11, 2026
TIM S.A. reported solid 2025 results released on February 10, 2026, with total net revenue up 4.6% year-on-year and service revenue up 5.2%, both above Brazil’s inflation, driven mainly by a 5.4% rise in mobile service revenue and a stronger...
TIM S.A. Files 2025 Audited Financial Statements Showing Higher Liabilities and Lower Equity
Feb 11, 2026
On February 10, 2026, TIM S.A. filed its Form 6-K with the U.S. Securities and Exchange Commission, publishing audited financial statements for the year ended December 31, 2025. The filing details the company’s balance sheet, including total...
TIM S.A. Moves to Take Full Control of I-Systems in R$950 Million Fiber Deal
Feb 11, 2026
On February 11, 2026, TIM S.A. announced that its board approved a R$950 million agreement to acquire the remaining 51% stake in I-Systems Soluções de Infraestrutura from IHS Fiber Brasil, a move that would give TIM full ownership of the...
TIM S.A. Board Backs 2025 Results and Moves to Take Full Control of I-Systems
Feb 11, 2026
On February 10, 2026, TIM’s board met in Rio de Janeiro to review committee reports on ESG, risk, and audit, approve the 2026 internal audit plan, and examine results from its 2025 organizational climate and engagement survey. The board also...
TIM Confirms Ongoing, Non-Binding Talks to Reacquire Stake in Fiber Unit I-Systems
Feb 3, 2026
On February 3, 2026, TIM S.A. confirmed that it is engaged in non-binding negotiations with IHS Fiber Brasil – Cessão de Infraestruturas Ltda. regarding a potential acquisition of an equity stake in I-Systems Soluções de Infra...
TIM S.A. Confirms Non-Binding Talks on Potential I-Systems Stake to Bolster Broadband Infrastructure
Feb 3, 2026
On February 2, 2026, TIM S.A. clarified press reports by confirming it is in non-binding talks with IHS Fiber Brasil – Cessão de Infraestruturas Ltda. over a potential acquisition of an interest in I-Systems Soluções de Infrae...
TIM S.A. Completes Acquisition of V8.Tech to Bolster Tech Capabilities
Jan 30, 2026
On January 30, 2026, TIM S.A. announced that it has completed the acquisition of 100% of the capital stock of V8 Consulting S.A. (V8.Tech), after all precedent conditions for the deal were met, following up on a prior notice issued on November 27,...
TIM S.A. Sets March 31, 2026 Date for Annual Shareholders’ Meeting After Calendar Correction
Jan 27, 2026
On January 27, 2026, TIM S.A. announced that it has corrected the scheduled date of its next Annual Shareholders’ Meeting to March 31, 2026, as reflected in the company’s updated corporate events calendar. The company stated that detai...
TIM S.A. Signs Long-Term Tower Deal with American Tower to Streamline Network Infrastructure
Jan 22, 2026
On January 21, 2026, TIM S.A.’s board approved a new strategic agreement with American Tower do Brasil covering about 9,000 towers, roughly 30% of TIM’s infrastructure, consolidating all prior contracts into a single framework with a u...
TIM S.A. Board Approves RAN Supply Deals and Unified Infrastructure Lease with American Tower
Jan 22, 2026
At a board meeting held on January 21, 2026, TIM S.A.’s directors approved new agreements for the supply of Radio Access Network (RAN) goods and services with Huawei do Brasil Telecomunicações and Nokia Solutions and Networks do Br...
TIM S.A. Schedules 2026 Annual Shareholders’ Meeting for March 26
Jan 15, 2026
On January 15, 2026, TIM S.A., the Brazilian telecom operator listed in São Paulo and New York, announced that its next Annual Shareholders’ Meeting is scheduled to take place on March 26, 2026. The company indicated that the official c...
TIM S.A. Reports Insider and Related-Party Shareholdings in January 9, 2026 Form 6-K Filing
Jan 9, 2026
On January 9, 2026, TIM S.A. filed a Form 6-K in the United States disclosing consolidated information on securities and derivative positions held by members of its board of directors, executive management, fiscal council, technical or advisory bo...
TIM S.A. Raises Per-Share Dividend After Treasury Share Adjustment
Dec 29, 2025
On December 26, 2025, TIM S.A. announced a rectification to the gross dividend amount per share previously disclosed on December 16, 2025, reflecting a change in the number of treasury shares prior to the ex-dividend date of December 19, 2025. The...
TIM S.A. Approves Profit Distribution and Strategic Plans in December 2025 Meeting
Dec 16, 2025
On December 16, 2025, TIM S.A. held a Board of Directors meeting to discuss several key issues, including the approval of profit distribution to shareholders, with dividends and interest on equity to be paid by June 2026. The meeting also covered ...
TIM S.A. Cancels 28 Million Treasury Shares
Dec 16, 2025
On December 16, 2025, TIM S.A. announced the cancellation of 28,678,509 treasury shares, which were acquired under its current Buyback Program. This decision, approved by the Board of Directors, does not affect the company’s capital stock, w...
TIM S.A. Announces Dividend and Interest Payments for 2025
Dec 16, 2025
On December 16, 2025, TIM S.A.’s Board of Directors approved the distribution of BRL 2.21 billion as an advance payment of dividends and interest on equity for the fiscal year 2025. This decision aligns with the company’s strategic pla...
TIM S.A. Announces Profit Distribution and Impairment Evaluation
Dec 16, 2025
On December 16, 2025, TIM S.A. held a Fiscal Council meeting to discuss the distribution of profits to shareholders and the methodology for annual impairment evaluation. The council approved a proposal to distribute R$1.79 billion in dividends and...
TIM S.A. Reports on Securities and Derivatives Operations
Dec 10, 2025
On December 9, 2025, TIM S.A. reported on its securities and derivatives operations in accordance with CVM resolution 44/21. The report detailed various transactions involving common registered shares and related party transactions, indicating a s...
TIM S.A. Expands B2B Strategy with Acquisition of V8.Tech
Nov 28, 2025
On November 27, 2025, TIM S.A. announced the acquisition of V8.Tech, a technology company specializing in digital solutions and managed services, for R$140 million. This strategic move aims to enhance TIM’s B2B capabilities, allowing it to o...
TIM S.A. to Acquire V8 Consulting for BRL 140 Million
Nov 28, 2025
On November 26, 2025, TIM S.A.’s Board of Directors approved a strategic acquisition of V8 Consulting S.A., a technology company specializing in digital solutions integration, for BRL 140 million. This acquisition, pending approval from the ...
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.