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TIM (TIMB)
NYSE:TIMB
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TIM
(NYSE:TIMB)
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Rating:79Outperform
Price Target:
$23.50
â–²(9.20% 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
$10.38B
Dividend Yield5.6%
Average Volume (3M)449.01K
Price to Earnings (P/E)16.3
Beta (1Y)0.37
Revenue Growth-7.99%
EPS Growth2.16%
CountryUS
Employees8,873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding484,160,900
10 Day Avg. Volume280,676
30 Day Avg. Volume449,015
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)1.34
Price to Sales (P/S)1.39
P/FCF Ratio4.55
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit0.86
Enterprise Value/Ebitda0.85
Forecast
1Y Price Target
$22.78Price Target Upside5.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| 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
Positive
21.52
Price Trends
20.29
Positive
19.27
Positive
16.27
Positive
Market Momentum
0.33
Positive
56.39
Neutral
33.38
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 21.52 is above the 20-day moving average (MA) of 21.28, above the 50-day MA of 20.29, and above the 200-day MA of 16.27, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 33.38 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.38B | 16.27 | 13.78% | 5.60% | -7.99% | 2.16% | |
79 Outperform | 5.12B | 11.91 | 11.17% | 5.45% | 19.25% | 5.69% | |
72 Outperform | 19.81B | 19.63 | 7.96% | 4.66% | -6.51% | -0.21% | |
72 Outperform | 8.73B | 14.40 | 2.91% | 3.11% | -1.56% | -18.33% | |
67 Neutral | 8.29B | 11.70 | 11.13% | 4.63% | -4.74% | -16.57% | |
52 Neutral | 28.84B | -11.41 | -13.79% | 7.07% | -4.73% | -251.31% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
TIMB
TIM
21.52
5.71
36.12%
TLK
PT Telekomunikasi Indonesia Tbk
18.86
-0.24
-1.26%
SKM
Sk Telecom
21.57
-2.77
-11.38%
VIV
Telefonica Brasil
12.29
2.60
26.83%
TEF
Telefonica
5.04
0.40
8.62%
FYBR
Frontier Communications Parent
37.36
1.65
4.62%
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.