Tim S.A. (TIMB)
NYSE:TIMB
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TIM
(NYSE:TIMB)
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Rating:68Neutral
Price Target:
$26.00
▼(-3.09% Downside)
Action:Downgraded
Date:05/09/26
Score is supported primarily by strong financial performance (healthy margins and rising free cash flow) and a constructive earnings outlook with guidance execution and robust operating cash flow. The main drag is weak technicals (below key moving averages with negative MACD), while valuation is helped by a high dividend but constrained by a ~20x P/E.
Positive Factors
Strong margins & profitability
TIM’s sustained high gross (~53%) and net (~16%) margins are durable indicators of pricing power and operating efficiency in a capital-intensive telecom industry. Persistent margin strength supports reinvestment, dividend capacity and resilience versus cyclical revenue swings, underpinning long-term cash returns.
Negative Factors
Historical leverage volatility
The prior spike in leverage increases structural refinancing and interest-rate sensitivity risk. While recent improvement reduces immediate pressure, historical swings indicate capital-structure cyclicality that can constrain strategic optionality and raise funding costs during adverse macro periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins & profitability
TIM’s sustained high gross (~53%) and net (~16%) margins are durable indicators of pricing power and operating efficiency in a capital-intensive telecom industry. Persistent margin strength supports reinvestment, dividend capacity and resilience versus cyclical revenue swings, underpinning long-term cash returns.
Read all positive factors
TIM (TIMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.40B
Dividend Yield7.82%
Average Volume (3M)376.36K
Price to Earnings (P/E)12.1
Beta (1Y)0.27
Revenue Growth8.21%
EPS Growth30.97%
CountryUS
Employees8,873
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)8.95
Shares Outstanding478,425,170
10 Day Avg. Volume260,163
30 Day Avg. Volume376,360
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 Cap6.25
Enterprise Value/Revenue2.41
Enterprise Value/Gross Profit4.45
Enterprise Value/Ebitda4.67
Forecast
1Y Price Target
$26.73Price Target Upside-0.39% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.88
Revenue Forecast (FY)$5.59B
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 primarily makes money by charging customers recurring service fees for telecommunications connectivity. Its key revenue streams include: (1) Mobile services: revenue from postpaid and prepaid mobile plans, including voice, messaging, and (prim...
TIM Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 28, 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
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.04B | 26.62B | 25.45B | 23.83B | 21.53B | 18.06B |
| Gross Profit | 14.61B | 14.36B | 13.55B | 12.34B | 10.87B | 9.62B |
| EBITDA | 13.92B | 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 | 57.80B | 56.94B | 56.33B | 55.26B | 56.41B | 49.82B |
| Cash, Cash Equivalents and Short-Term Investments | 5.87B | 5.88B | 5.69B | 5.04B | 4.74B | 9.80B |
| Total Debt | 16.74B | 28.59B | 15.61B | 16.03B | 17.80B | 12.91B |
| Total Liabilities | 33.38B | 32.96B | 29.92B | 29.24B | 31.01B | 24.71B |
| Stockholders Equity | 24.42B | 23.98B | 26.40B | 26.02B | 25.40B | 25.11B |
Cash Flow | ||||||
| Free Cash Flow | 9.05B | 8.90B | 7.78B | 7.92B | 4.43B | 4.62B |
| Operating Cash Flow | 13.61B | 13.44B | 12.33B | 12.42B | 9.16B | 9.91B |
| Investing Cash Flow | -3.13B | -3.56B | -4.95B | -4.68B | -8.35B | -6.52B |
| Financing Cash Flow | -9.30B | -9.53B | -7.20B | -7.21B | -3.49B | -735.37M |
TIM Technical Analysis
Negative
26.83
Price Trends
25.05
Negative
24.69
Negative
22.71
Negative
Market Momentum
-0.91
Negative
34.36
Neutral
48.21
Neutral
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 26.83 is above the 20-day moving average (MA) of 23.28, above the 50-day MA of 25.05, and above the 200-day MA of 22.71, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 48.21 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $21.59B | 16.96 | 9.28% | 5.03% | 10.34% | 17.26% | |
68 Neutral | $10.40B | 12.08 | 17.55% | 7.82% | 8.21% | 30.97% | |
65 Neutral | $14.08B | 57.39 | 3.00% | 5.02% | -7.08% | -73.85% | |
64 Neutral | $16.84B | 17.16 | 12.76% | 6.14% | -6.44% | -27.87% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TIMB
TIM
22.02
5.71
35.02%
TLK
PT Telekomunikasi Indonesia Tbk
16.42
0.24
1.46%
SKM
Sk Telecom
37.34
16.66
80.56%
VIV
Telefonica Brasil
13.14
3.62
38.01%
TIM Corporate Events
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...
TIM S.A. Advances R$880 Million Interest on Equity Payment to April 22, 2026
Apr 17, 2026
TIM S.A. informed shareholders on April 16, 2026 that it will bring forward the payment date of previously approved Interest on Equity distributions, moving them from April 30, 2026 to April 22, 2026. The payments, totaling R$ 490 million from a M...
TIM S.A. Board Backs 700 MHz Auction Bid and Confirms Leadership Changes
Apr 15, 2026
On April 14, 2026, TIM S.A.’s board of directors approved the company’s participation in all stages of ANATEL’s auction for licenses in the 700 MHz spectrum band, ratifying all preparatory acts taken so far and empowering officer...
TIM S.A. Legal Officer Resigns as Board Prepares to Review Executive Structure
Apr 1, 2026
On March 31, 2026, Brazilian telecom operator TIM S.A. announced that its Legal Officer, Fabiane Reschke, submitted her resignation from the position. The company publicly thanked Reschke for her dedication during her tenure and indicated that its...
TIM S.A. Shareholders Approve 2025 Results, R$4 Billion Payout and Governance Changes
Apr 1, 2026
TIM S.A. held its annual and extraordinary shareholders’ meetings on March 31, 2026, in Rio de Janeiro, with about 90% of its capital represented, including ADR holders participating via distance voting. Shareholders approved the 2025 manage...
TIM S.A. Files 2025 Form 20-F with U.S. SEC
Mar 31, 2026
TIM S.A. informed investors on March 30, 2026, that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission. The filing underscores the company’s adherence to ...
TIM S.A. Shareholders Back 2025 Results and Governance Changes at 2026 General Meetings
Mar 30, 2026
On March 30, 2026, TIM S.A. reported the consolidated voting results of its 2026 Ordinary and Extraordinary General Meetings, detailing strong shareholder approval rates for the company’s 2025 financial statements and the allocation of 2025 ...
TIM S.A. Clarifies Market on Poste Italiane’s Public Offer for Telecom Italia
Mar 24, 2026
On March 23, 2026, TIM S.A. reported that it had been informed of a press release by its indirect parent, Telecom Italia S.p.A., whose board acknowledged the launch of a public offer directed at Telecom Italia by Poste Italiane S.p.A. TIM emphasiz...
TIM S.A. Fiscal Council Backs R$390 Million Interest on Equity Distribution
Mar 20, 2026
On March 18, 2026, TIM S.A.’s Fiscal Council held an extraordinary virtual meeting alongside the Statutory Audit Committee to review a management proposal for distributing interest on shareholders’ equity. The council evaluated the met...
TIM S.A. Board Approves R$390 Million Interest on Equity Distribution
Mar 20, 2026
On March 18, 2026, TIM S.A.’s board of directors held an extraordinary virtual meeting to decide on the payment of interest on shareholders’ equity, underscoring the importance and urgency of the matter for the company’s capital ...
TIM S.A. Approves R$390 Million Interest on Shareholders’ Equity Distribution
Mar 19, 2026
On March 18, 2026, TIM S.A.’s board of directors approved the distribution of R$390 million as interest on shareholders’ equity, reinforcing its capital return policy to investors. The payment, scheduled to be completed by April 30, 20...
TIM S.A. Details Management and Controlling Shareholder Holdings in March 10, 2026 SEC Filing
Mar 11, 2026
On March 10, 2026, TIM S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission disclosing consolidated information on securities and derivative positions held by its directors, executive management, fiscal council, technical or advi...
TIM S.A. Fiscal Council Backs 2026 Equity Interest Plan and Confirms Tax Governance Strength
Mar 4, 2026
On February 25, 2026, TIM S.A.’s Fiscal Council met in Rio de Janeiro to review the methodology for calculating interest on shareholders’ equity (JSCP) for the 2026 fiscal year and to assess the company’s tax contingencies report...
TIM S.A. Calls March 31, 2026 Shareholders’ Meeting to Vote on 2025 Results and Governance Changes
Feb 26, 2026
TIM S.A. has called its Annual and Extraordinary General Shareholders’ Meeting for March 31, 2026, in Rio de Janeiro to address 2025 financial statements, profit allocation and dividends, board composition, and management and fiscal council ...
TIM S.A. Calls March 31 Meeting to Approve 2025 Results, R$4 Billion Payout and Governance Changes
Feb 26, 2026
TIM S.A., a leading Brazilian telecommunications company, operates under B3’s Novo Mercado, signaling rigorous corporate-governance standards that include exclusive common shares with voting rights, a permanent Fiscal Council and advisory co...
TIM S.A. Board Updates 2026–2028 Plan and Names New Chairman
Feb 26, 2026
On February 25, 2026, TIM S.A.’s board met in Rio de Janeiro to review committee activities, update and approve guidelines for its 2026–2028 industrial plan, and endorse the methodology for calculating interest on shareholders’ e...
TIM S.A. Announces Board Chair Resignation and New Appointments Effective March 31, 2026
Feb 26, 2026
On February 25, 2026, Brazilian telecom operator TIM S.A. announced that Nicandro Durante had submitted his resignation as a member and Chairman of the Board of Directors, as well as from his roles on the Compensation, Environmental, Social Gover...
TIM S.A. Calls March 31, 2026 Shareholders’ Meeting to Vote on 2025 Results, Governance Changes and Telecom Italia Agreement
Feb 26, 2026
TIM S.A. has called its Annual and Extraordinary Shareholders’ Meeting for March 31, 2026, in Rio de Janeiro, to deliberate on the 2025 management report and financial statements, the allocation of 2025 results and dividend distribution, and...
TIM S.A. Sets 2026–28 Plan to Deepen AI, 5G and ESG-Led Growth in Brazil
Feb 24, 2026
In February 2026, TIM unveiled its 2026–28 industrial and strategic plan, centered on six pillars: strengthening mobile through its “3Bs” strategy (Best Network, Best Offer, Best Service), driving sustainable broadband growth, ac...
TIM Updates 2026 Strategic Plan With Higher Growth and Shareholder Payout Targets
Feb 24, 2026
On February 24, 2026, TIM announced an update to its 2026 Strategic Plan projections, targeting real service revenue growth above inflation while preserving mobile business sustainability, reigniting broadband expansion and strengthening its B2B p...
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...
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.
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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.