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TIM (TIMB)
NYSE:TIMB
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TIM (TIMB) AI Stock Analysis

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TIMB

TIM

(NYSE:TIMB)

Rating:79Outperform
Price Target:
$23.50
▲(12.82% 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)

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: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial and operational performance, driven by service revenue growth, increased EBITDA, and 5G network expansion. The company's strategic initiatives in sustainability and new revenue streams such as B2B IoT are also notable. However, challenges in lease cost management and tower negotiations posed some concerns. Overall, the positive highlights outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Service Revenue Growth
Service revenues grew by 5.4% year-over-year, supported by mobile services. Mobile service revenue grew by 5.6% year-on-year in Q2.
Increased EBITDA and Profitability
EBITDA increased by 6.5%, reflecting improved profitability with a 49.5% margin.
5G Network Expansion
30% of traffic now flows via TIM's 5G network, and the company covers 70% of the urban population with 5G, being #1 in cities with 5G.
Recognition in Sustainability
TIM was recognized as the most sustainable Brazilian company, topping the B3 Sustainability Index.
Postpaid Customer Growth
Added more than 450,000 new postpaid customers in the second quarter, with a 12.2% year-over-year growth in postpaid revenue.
B2B IoT and New Revenue Streams
Substantial growth in B2B IoT, especially in logistics and agribusiness, with 7,000 kilometers of roads covered.
Efficient CapEx Management
The company leveraged 5G technology for efficient CapEx management, helping operational cash flow post double-digit growth.
Negative Updates
Lease Cost Challenges
Challenges in lease cost negotiations due to inflation and rollout expansions.
Tower Negotiation Issues
Difficulty in negotiating tower costs with some partners, leading to potential decommissioning of non-cost-effective towers.
Company Guidance
In their second-quarter 2025 results call, TIM Brazil reported strong financial and operational performance. Service revenues increased by 5.4% year-over-year, driven by mobile services, while EBITDA rose by 6.5%, achieving a 49.5% margin. The company added over 450,000 postpaid customers, with postpaid revenue growing at a double-digit pace of 12.2% year-over-year. TIM's mobile ARPU was close to BRL 33 per month, expanding at a mid-single-digit rate. The company's 5G network now handles 30% of their data traffic, covering 70% of the urban population, and contributing to operational efficiency with a cost per gigabyte that is just 30% of 4G's. TIM also expanded its B2B IoT strategy, covering approximately 7,000 kilometers of Brazilian highways, and launched an energy sales partnership with Eletrobras. The company maintained disciplined cost control, keeping expense growth below inflation, and continued to invest in network modernization, including expanding 5G coverage in Sao Paulo and Minas Gerais.

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
85
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
78
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
82
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue26.04B25.45B23.83B21.53B18.06B17.27B
Gross Profit13.65B13.55B12.34B10.87B9.62B9.27B
EBITDA13.71B12.99B12.17B10.16B9.84B8.38B
Net Income3.63B3.15B2.84B1.67B2.96B1.83B
Balance Sheet
Total Assets56.95B56.33B55.26B56.41B49.82B41.65B
Cash, Cash Equivalents and Short-Term Investments5.47B5.69B5.04B4.74B9.80B4.65B
Total Debt16.22B15.61B16.03B17.80B12.91B10.72B
Total Liabilities31.83B29.92B29.24B31.01B24.71B18.47B
Stockholders Equity25.13B26.40B26.02B25.40B25.11B23.18B
Cash Flow
Free Cash Flow8.97B7.78B7.92B4.70B4.62B4.78B
Operating Cash Flow13.47B12.33B12.42B9.43B9.91B8.67B
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 Price20.83
Price Trends
50DMA
19.65
Positive
100DMA
18.36
Positive
200DMA
15.56
Positive
Market Momentum
MACD
0.45
Positive
RSI
57.93
Neutral
STOCH
31.84
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 20.83 is above the 20-day moving average (MA) of 20.78, above the 50-day MA of 19.65, and above the 200-day MA of 15.56, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 31.84 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$4.84B11.127.38%5.80%19.25%5.69%
79
Outperform
$10.07B15.8613.78%5.73%-7.99%2.16%
72
Outperform
$9.03B14.735.22%2.98%-1.22%-17.07%
72
Outperform
$19.74B19.418.20%4.35%-6.51%-0.21%
67
Neutral
$8.37B11.638.49%4.58%-4.74%-16.57%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
60
Neutral
$30.16B-3.55%6.74%-4.73%-251.31%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TIMB
TIM
20.83
5.74
38.04%
KT
KT
20.14
4.79
31.21%
SKM
Sk Telecom
21.67
-2.11
-8.87%
VIV
Telefonica Brasil
12.33
3.01
32.30%
TEF
Telefonica
5.29
0.85
19.14%
TKC
Turkcell Iletisim
5.58
-1.16
-17.21%
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